FNB is driving growth in South Africa's local business sector, with its community economy book worth R18 billion, supporting more than 250,000 entrepreneurs.
Source:Supplied. Jose Gomes, Head of Business Development: FNB.
In the last year alone, the Bank expanded this portfolio by more than R2 billion, helping business owners access vital funding to sustain and grow their operations.
Beyond the numbers, this investment translates into thousands of jobs, stronger families and thriving local economies. In a sector that employs almost one in five South Africans and contributes an estimated R750 billion to the national economy, access to finance can be the difference between survival and expansion.
cash flow simplified
For many informal businesses – spa shops, salons, taverns, hairdressers and local logistics providers – traditional banking has fallen out of reach. FNB's approach changes this by going beyond paperwork and collateral, using real-world indicators such as on-time payments to suppliers and employees. For example, a salon owner can access working capital based on daily card sales.
When demand increases before the festive season, the owner can quickly secure funding, stock up and hire additional staff. Repayments are made as a small percentage of each day's sales, keeping cash flow steady. For a bar owner, owning payment equipment directly rather than paying a monthly rental means that another monthly expense impacting cash flow is reduced, while customers are provided an alternative payment method to cash.
The effect is obvious:
- R18bn of loans to the community economy have enabled thousands of businesses to expand, innovate and employ more people.
- Advances to micro, small and medium enterprises (MSMEs) increased by 20% in FY2025, with a 28% increase for businesses with turnover up to R5m.
- MSME deposits grew by 20% overall and 27% in the R0-R5m turnover segment.
- Sectors such as spa shops, salons, taverns and local logistics providers continue to perform well, with demand for working capital solutions growing between 28% and 30% in the R0-R1m and R1-R5m segments respectively.
investment in development
This impact goes far beyond what is reflected in financial statements – it represents new opportunities for business owners who have long been excluded from traditional finance.
A spaza shop can weather the tough months, a salon can hire and train young people, and an inn can invest in safer, more efficient operations. In a country where the community economy is a lifeline for millions of people, especially young people who are unable to find jobs – every rand of funding is a step towards greater inclusion and resilience.
FNB's commitment extends far beyond lending. This year more than 3,400 entrepreneurs participated in business literacy workshops, and hundreds of networking events and mentorship programs. Digital payment solutions and platforms like NAV Marketplace are helping businesses reach new customers and suppliers.
“Our approach is about understanding the realities of the community economy,” says Jose Gomes, head of business development at FNB Commercial.
“We look at how businesses manage their daily finances – paying suppliers, employees and landlords on time, rather than just their paperwork. This means more entrepreneurs can access finance, manage cash flow and expand their businesses.”
These are not just statistics, these are stories of resilience, growth and hope. FNB aims to help businesses in the community economy overcome barriers, build a sustainable future and contribute to a more inclusive South African economy.