Equity Bank has secured two grants amounting to Kshs. 5 billion (€39 million) from Proparco to increase lending to Micro Small and Medium Enterprises (MSMEs) in Kenya.
Proparco which is the private sector financing arm of Agence Française de Développement Group (AFD Group) has further granted the bank Kshs. 70 million (€550,000) technical assistance grant to the Equity Group Foundation (EGF).
The first grant amounting to Kshs. 2.5 billion (€19.5 million) will cover 50% of the amount of eligible loans allocated by Equity Bank to Kenyan MSMEs.
The second grant amount to Kshs. 2.5 billion (€19.5 million) will cover up to 70% of loans granted to women entrepreneurs or to MSMEs in sectors with a high social or societal impact such as agriculture, fisheries, education and health.
“Our strong relationship with Proparco is one that we greatly value. Our shared vision for the transformation of lives and livelihoods on the African continent is one we are both committed to. It is this shared mission that continues to support and expand opportunities for wealth creation on the continent for our people, and which will allow Africa to thrive and prosper in the post-Covid economy and underpins our collaborations under the French “Choose Africa” and Equity’s post covid Africa resilience and growth plan,” said Dr. James Mwangi, Equity Group Chief Executive Officer.
Funding for the technical assistance aims to support the development of Equity Group Foundation’s health pillar through development of entrepreneurial and management training for Equity Afia’s doctor-entrepreneurs, implementation of a quality management programme within the network and the strengthening of the Equity Afia clinic economic and social model.
“With this Kshs. 5 billion guarantee facility for the benefit of hundreds of MSMEs including in high social impact sectors such as agriculture and healthcare, Proparco is very proud to further strengthen its partnership with Equity Bank, one of the leading and most innovative banking groups of Africa. Equity Bank historical and long-lasting commitment to MSMEs makes it a prominent partner of the AFD Group in the roll out of the Choose Africa initiative launched in 2018 by the French Government,” said Djalal Khimdjee, Deputy CEO of Proparco.
This is the latest grant Equity Bank has received from Proparco within three years having secured $22.8 million grant in 2019 and another $100 million loan granted in October 2020 to boost the lender’s MSME loan book.