Standard Bank and JUMO launch social finance framework to scale inclusive lending

JUMO launched a Social Finance Framework in late August, developed with Standard Bank’s Sustainable Finance team, creating a structure for mobilising social loans and bonds to expand financing for underserved individuals and smaller businesses across African markets.

The framework is aligned with internationally recognised sustainable-finance principles and establishes criteria for raising and allocating social funding. Proceeds can support financing targeted at individuals, microenterprises and small and medium-sized businesses that have historically faced barriers accessing conventional financial services.

JUMO is a banking technology company that partners with financial institutions and telecommunications providers to expand access to financial services; it operates in nine African markets. JUMO said the framework enables a broader pool of development finance institutions, impact investors and sustainability-focused funders to access transparent and measurable social impact opportunities in Africa.

CONNECTING CAPITAL MARKETS WITH INCLUSION

JUMO says it has disbursed more than $10 billion and delivered more than 313 million loans since inception, with disbursements up 79% year on year.

According to JUMO chief executive Paul Whelpton, the framework standardises the governance, reporting and impact measurement processes intended to give investors confidence that financing is directed towards eligible social activities.

Eligible social activities under the framework include SME and microenterprise financing, employment generation, economic empowerment and access to responsible digital financial services. The framework is supported by a positive second-party opinion from Endiligence.

WHY IT MATTERS

George Karamitsos, vice-president for sustainable finance at Standard Bank, said the framework "provides a credible, transparent vehicle to channel institutional capital into JUMO's proven platform at scale".

The partners said the framework aims to accelerate access to responsible credit and unlock economic opportunity for millions of underserved consumers and businesses across the continent.