By: Lonwabo Mtyeku | Photo Credit: FNB
Seen here: Jose Gomes, Business Development Head at FNB
Johannesburg – 17 February 2026 — A long-term commitment by First National Bank (FNB) to South Africa’s community economy is delivering measurable impact, with R18 billion advanced to date and continued momentum in funding growth for informal and micro-businesses across the country.
Over several years, the bank has built a community economy book now supporting more than 250,000 entrepreneurs — business owners who underpin livelihoods, create jobs and anchor local economies. In the most recent financial year alone, FNB grew this book by more than R2 billion, extending access to finance to even more enterprises operating beyond the reach of traditional banking models.
The scale of this support matters. The informal sector employs nearly one in five working South Africans and contributes an estimated R750 billion to the national economy. For many of these businesses — including spaza shops, salons, taverns, hairdressers and local logistics operators — access to funding is often the difference between stagnation and sustainable growth.
Rethinking How Informal Businesses Are Financed
FNB’s approach departs from conventional lending frameworks that rely heavily on formal documentation and collateral. Instead, the bank assesses real-world indicators such as consistent payments to suppliers, staff and landlords, as well as daily trading patterns.
For a salon owner, this means accessing working capital linked to daily card sales. During peak periods, such as the festive season, funding can be unlocked quickly to increase stock levels and hire additional staff. Repayments are structured as a small percentage of daily turnover, helping businesses manage cash flow without added pressure.
For tavern owners, outright ownership of payment devices — rather than monthly rentals — reduces fixed costs while offering customers secure alternatives to cash transactions.
Tangible Results Across the Community Economy
The impact of this model is evident in the latest performance data:
- R18 billion in loans advanced to the community economy, enabling thousands of businesses to expand, innovate and employ more people.
- Advances to micro, small and medium enterprises (MSMEs) grew by 20% in FY2025, with a 28% increase among businesses with turnover of up to R5 million.
- Deposits from MSMEs rose by 20% overall, and 27% in the R0–R5 million turnover segment.
- Sectors such as spaza shops, salons, taverns and local logistics providers continue to outperform, with demand for working-capital solutions growing between 28% and 30% in the R0–R1 million and R1–R5 million segments respectively.
Beyond balance sheets, these figures translate into everyday resilience: spaza shops staying open during lean months, salons hiring and training young people, and taverns investing in safer, more efficient operations.
Beyond Funding: Building Capability and Confidence
FNB’s commitment extends beyond lending. During the past year, more than 3,400 entrepreneurs participated in business literacy workshops, while hundreds joined networking sessions and mentorship programmes. Digital payment tools and platforms such as nav» Marketplace are also helping informal businesses connect with new customers and suppliers.
“Our approach is about understanding the realities of the community economy,” says Jose Gomes, Business Development Head at FNB Commercial. “We look at how businesses manage their day-to-day finances, not just their paperwork. This allows more entrepreneurs to access finance, manage cash flow and grow sustainably.”
Driving Inclusion and Economic Resilience
In a country where the community economy is a vital source of income for millions — particularly young people excluded from formal employment — each rand invested strengthens inclusion and economic resilience.
FNB’s R18 billion pledge is more than a funding milestone. It represents thousands of stories of perseverance and progress, and a growing belief that inclusive finance can help build a more resilient and equitable South African economy.
