Equity Group Holdings and African Guarantee Fund (AGF) have renewed their partnership to support Micro, Small, and Medium Enterprises (MSMEs) with a USD500 million facility.

This framework will enable Equity Group to expands it lending to MSMEs to USD1 billion and in the process create and sustain an estimated more than 50,000 jobs in East Africa.

The partnership was unveiled in 2018 and scaled with a USD75 million facility in 2020, and the 2025 renewal makes it the largest single guarantee engagement in the history of AGF.

It targets MSMEs in Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC) and is set to extend to future Equity Group subsidiaries over the next decade.

The transformative framework will be implemented in three phases, commencing with an preliminary tranche of USD115 million already committed to the five core subsidiaries.

Read More

  1. James Mwangi receives major UN award for boosting financial access by refugees
  2. Equity Group boss James Mwangi conferred Freedom of the City of London
  3. NCBA and AGF renew partnership with Sh3 billion deal to spur women-led SMEs

The expanded facility by Equity Group Holdings and AGF will cover loans extended to MSMEs, especially those which are women-owned, youth-led, and green enterprises.

So far, the AGF–Equity collaboration has processed over USD160 million in credit facilities for close to 2,000 MSMEs, among them 500 women-led and 900 youth-led businesses.

Equity Group MD and CEO Dr James Mwangi says the renewed partnership reflects the Group’s shared vision of enabling MSMEs, which are the mainstay of African economies.

“By enhancing access to finance and promoting sustainable business practices, we are investing in the future of our communities, preserving jobs and driving inclusive growth across the region,” said Dr Mwangi.

He added: “We see a unique opportunity to deepen our focus on high-impact SME sub-sectors, including agriculture, women- and youth-led enterprises, among others.”

He noted that the above were key to Equity’s Africa Recovery and Resilience Plan (ARRP) that leverages collaboration and strategic partnerships to unlock transformative growth.

On his part, AGF Group CEO Jules Ngankam noted that the renewed partnership with Equity Group would further increase the Fund’s footprint and impact in the East African region.

“By supporting the Bank to accelerate SME financing, we envision several development impact indicators, including increasing the number of people employed and engaged in businesses and growth of enterprises from one stage to another, for instance, from Small to Medium enterprises,” Ngankam stated.

The new deal leverages Equity’s partnership with African Development Bank under the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, to unlock USD3 billion in financing for women SMEs in Africa through financial institutions.

The AGF-Equity risk-sharing mechanism will offer women businesses more guarantee cover and technical aid provided by Equity Group Foundation, to lessen the gender finance gap.