• The USD 75 Million (Kshs 8.25 Billion) Guarantee Fund derisks women-owned and managed MSMEs access credit at affordable interest rates so as to recover and thrive in a Post COVID-19 Environment
• The facility extends support to Equity Bank Kenya and three of the Group’s subsidiary operationsRwanda, Uganda and DRC
• The Kshs 8.25 Billion facility comes on the heels of a US $100 Million (Kshs 11 Billion) Credit Facility with Leading European Development Banks (DEG, CDC, FMO) two weeks ago.
Nairobi, Kenya: March 15, 2021 – The African Guarantee Fund (AGF) and Equity Group Holdings Plc have signed an agreement which will provide a USD 75 Million (Kshs 8.25 Billion) guarantee fund to four of Equity’s bank subsidiaries within the Group.
The facility is earmarked to support Equity to scale up its lending activities to women-owned and managed Micro, Small and Medium-Sized Enterprises in Kenya, Uganda, Rwanda and DRC, ensuring women are able to access credit at affordable interest at a time when it’s most needed.
Speaking during the signing ceremony, Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings stated that, “With this facility from African Guarantee Fund, whom we share a mission of supporting women MSMEs, we will be strongly positioned to continue to offer our customers particularly women in business access to funding at a time when the COVID-19 pandemic continues to impact negatively on businesses.
Women MSMEs are key players in driving livelihoods for the majority of families, communities and growth of the economy. This support in the form of a guarantee fund will mitigate the credit risk Equity is exposed to as we continue to work with women MSMEs to navigate through these uncertain times and keep the lights of the economy on. This will ensure livelihoods and opportunities within the economy continue to accelerate as we revitalize economic activities to enable the economy to bounce back amidst the rollout of the vaccine.
Our commitment is to continue working with MSMES to finance them to recover and thrive, and where necessary transform and adapt their businesses to the changing environment and seize new business opportunities.”
In response to the COVID-19 crisis, Equity launched an offensive and defensive approach to support customers to sustain themselves while innovating alongside MSMEs who are leveraging on the opportunities that have presented within the crisis.
The Group committed to loan repayment accommodation for up to 45% of the customers […]