Equity Group Holdings has secured a USD 100 million loan facility to support its expansion across Central and East Africa, including Ethiopia.
The loan, a tier two facility with a seven-year maturity, will enable the bank offer tailored products to medium and small enterprises, strengthen its balance sheet, and optimize its capital structure across the continent with a special emphasis given on women and youth entrepreneurs.
The group, in a statement sent to The Reporter , explained that the facility will support Equity’s expansion in East and Central Africa and ensure Micro, Small and Medium Enterprises (MSMEs) have access to capital to recover and thrive in a post COVID-19 environment, and enhance its ability to serve small and medium enterprises (SMEs) as it grows.
In addition to operating in Kenya, Rwanda, Uganda, South Sudan, Tanzania, the Democratic Republic of the Congo, and Ethiopia. The Group recently expanded its operations into the DRC by merging its existing operations of Equity Bank Congo with its acquisition of Banque commerciale du Congo (BCDC) to form Equity BCDC.
James Mwangi (PhD), Managing Director and CEO of Equity Group Holdings said “Together with the African Development Bank Group, our company will be strongly positioned to support MSMEs to keep their lights on during the prevailing COVID-19 pandemic that has slowed down the economy and impacted the cash flows of enterprises.”
“By extending credit to them during this period, Equity demonstrates its commitment to walk with its customers, and to empathize with their social-economic situation brought about by the pandemic,” he added.
The managing director noted that the Enterprises have been able to re-imagine, repurpose and retool their activities and have emerged more resilient, thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing of internationally certified quality Personal Protective Equipments (PPEs).
“Equity has a strong track record of designing products suited to the needs of SMEs as well as emerging corporates. The timing of the facility’s disbursement could not have been more appropriate especially as businesses seek to remain operational amid a COVID-19 pandemic that is causing financial havoc,” said Stefan Nalletamby, AfDB’s Director for financial sector development.
Equity’s prudent approach to conserving its cash flow and supporting MSMEs through the COVID-19 crisis has provided more comfort to lenders across the continent. Its partnership with the African Development Bank will now facilitate further financing of MSMEs, added Stefan.
Equity has been working with 13 banks in […]