African Bank has expanded its banking services for SMEs, marking a milestone in its strategic shift from retail to full-service commercial banking.
The new service, which promises 48-hour loan approvals for small businesses, began rolling out across Gauteng early this month. It is already drawing attention from entrepreneurs eager for faster and simpler access to capital.
The offering is part of the bank’s Excelerate25 strategy, a plan set in motion following its acquisition of Grindrod Bank in 2022 and Sasfin’s Capital Equipment and Commercial Property Finance businesses in late 2023.
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African Bank’s chief executive of business banking, Zweli Manyathi, said the offering was designed to remove the traditional barriers often preventing small enterprises from securing credit.
“We want to improve accessibility of credit for SMEs with little paperwork and quicker turnaround times, enabling us to provide financing to entrepreneurs efficiently and conveniently,” Manyathi said at the rollout briefing in Rosebank, Johannesburg.
The digital-first application system allows business owners to apply online with minimal documentation and receive approval within two business days.
Manyathi said the rollout targeted traders, sole proprietors and growing SMEs that needed quick access to capital to take advantage of new contracts or bridge seasonal gaps.
The loans are structured to accommodate businesses that may not have traditional forms of collateral or long credit histories. The aim is to create an inclusive lending model grounded in operational performance and future potential.
Johannesburg-based entrepreneur Lindiwe Mokoena, who runs a catering and events company, lauded the timing of the launch.
“I have been turned away by three banks in the past year because I did not have audited financials. With African Bank, I applied online and got a response in a day. The money hit my account in 48 hours, and I used it to take on a last-minute government catering contract. I am back on my feet,” she said.
African Bank reported a 41% increase in net advances in 2023, rising to R32 billion. Business lending now makes up nearly 40% of its portfolio, and recent results for the first half of 2024 showed a net profit of R203 million.
These figures reflect financial strength and a growing demand for responsive SME finance.
Entrepreneur Mohale Thulare, who operates a spaza distribution network in Soweto, said access to working capital was the difference between expanding or stalling.
“We have always needed fast, affordable finance but could never get past the paperwork. This new system is what we have been waiting for. If I can apply on Monday and be restocking by Wednesday, I can finally compete with bigger suppliers.”
As the rollout continues through Johannesburg and into other provinces, the bank is positioning itself as a serious player in the SME finance space.
Its combination of technology, capital depth and local responsiveness is resonating with a generation of businessowners who are tired of being told to wait. For many of them, this is not just a loan. It is a second chance.
