Kenya-headquartered financial services holding company Equity Group Holdings has secured a USD 100 million loan facility from three European development finance institutions.
Continuing with its commitment to help micro, small, and medium sized enterprises (MSMEs) to endure the Covid-19 pandemic, Equity Group Holdings has secured USD 100 million from development finance institutions (DFIs), the German Investment Corporation (DEG), the United Kingdom’s CDC Group , and the Dutch FMO .
This is Equity Group’s third such loan, having secured USD 50 million from the International Finance Corporation (IFC) in September and a USD 100 million facility from French DFI Proparco in October.
The investment funds will allow Equity Group to keep lending to MSMEs, supporting their growth as the Covid-19 pandemic persists, helping them protect jobs and take advantage of sustainable economic opportunities.
It comes against a backdrop of worrying levels of sovereign debt in Africa and the economic crisis caused by Covid-19 which the continent faces.
Equity Group has also provided loan repayment rescheduling and accommodation to 45% of customers whose cashflows are likely to have been negatively impacted by Covid-19.
The group’s third quarter 2020 financial results showed a 30% growth in its loan book. Many of the loans are supporting customers in sectors such as personal protective equipment manufacturing, logistics, online businesses, agro-processing, fast moving consumer goods, and agriculture value chains.
“Supporting small and medium sized enterprises (SMEs) is a long-term priority particularly as the segment remains under-financed and in-need of patient capital” stated Equity Group in a press release announcing the investment on 9 March.
Equity Group’s managing director and CEO James Mwangi noted that nearly 40% of Kenyan business owners had been affected by the economic slowdown, adding that “Equity’s goal is to keep the lights of the economy on to sustain lives and livelihoods and facilitate the recovery of businesses as the economy begins to reopen”.
DEG management board CEO Christiane Laibach commented: “Through our cooperation we are contributing to supplying local SMEs with credit, which is particularly important and in demand at present.”
She added that “these facilities strengthen Equity’s position to further enhance the strength of MSMEs who key actors in value chains and ecosystems in the economy”.Nigerian fintech company Global Accelerex received a USD 20 million investment from private equity firm Africa Capital Alliance in November last year.SMEs in Kenya and Nigeria were among those to benefit from Covid-19 funding provided to banks by part of the World Bank Group […]
