James Mwangi, Equity Group CEO (PHOTO: FILE) Equity Group Holdings (EGH) has signed a USD 100 million loan (Sh11 billion) facility to support its expansion across Eastern and Central Africa, enhancing its ability to serve small and medium enterprises (SMEs) as it grows.
In addition to operating in seven African countries – Kenya, Rwanda, Uganda, South Sudan, Tanzania, the Democratic Republic of the Congo and Ethiopia, the Group recently expanded its operations in the DRC by merging its existing operations of Equity Bank Congo with the acquisition of BCDC to form Equity BCDC, now the second-largest financial services company in the country.
“Partnership will help support MSMEs to keep their lights on during the prevailing Covid-19 pandemic," said James Mwangi, Managing Director and CEO of Equity Group Holdings.
"By extending credit to them during this period, Equity demonstrates its commitment to walk with its customers, and to empathise with their social-economic situation brought about by the pandemic,” he said
“We have seen the impact of pumping oxygen to our MSMEs during this period. They have been able to re-imagine, repurpose and retool their enterprises and emerged more resilient thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing of internationally certified quality PPEs.”
The loan, a tier two facility with a seven-year maturity, is expected to promote EGH’s ability to offer bespoke products to MSMEs, strengthen its balance sheet and optimize its capital structure across the continent with a special focus on women and youth entrepreneurs.
“EGH 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. Read More
“We are pleased to collaborate with EGH in playing a countercyclical role during this pandemic.”
This is the sixth tranche for Equity Group after having signed a USD 50 million (Sh5.5 billion) loan facility with IFC in September, a USD 100 million (Sh11.0 billion) from Proparco in October and a EUR 125 million (Sh16.5 billion) loan facility signed last week with the European Investment Bank.
Others are a US $100 million (Sh11 billion) credit facility with leading European Development Banks DEG, FMO and CDC-UK and a USD 75 Million (Sh8.25 billion) facility with the African […]
