In six countries across Eastern and Central Africa, IFC and Equity Group are strengthening their relationship to assist Africa’s sustainable development by improving access to financial services for small businesses and funding for green projects.
Equity Group will use IFC’s support, as well as that of partners British International Investment, FMO, Symbiotics, and ResponsAbility, to implement its $6 billion ‘Africa Recovery and Resilience Plan,’ which will finance five million businesses and 25 million households in Kenya, DRC, Uganda, Rwanda, Tanzania, and South Sudan, creating 50 million jobs directly and indirectly.
James Mwangi, Managing Director, and CEO, Equity Group: “As Equity Group, we are delighted to welcome IFC, a member of the World Bank Group, to the Equity family as our second-largest shareholder. With IFC’s reach as the largest global development institution focused on the private sector equity, we will be able to further advance economic development by empowering and catalyzing the transformation of the lives and livelihoods of the African people and will enhance the success and sustainability of Equity’s ‘Africa Recovery and Resilience Plan’.”
IFC Vice President of Risk and Finance Mohamed Gouled noted that “Small businesses and climate-friendly initiatives are at the heart of IFC’s Africa strategy to help generate jobs, adapt to climate change, and take advantage of digital economy prospects. As Africa recovers from the effects of the COVID-19 pandemic, IFC’s increasing cooperation with Equity Group reflects that goal and will boost economic growth in the continent.”
Seema Dhanani, Head of Office Kenya & East Africa Coverage Director, BII said “BII is glad to collaborate with IFC to provide Equity Bank Kenya with a new credit facility. This is our second investment in Equity Bank, and it will help fund climate-friendly projects in Kenya by increasing working capital for more local businesses. This climate finance facility underscores BII’s ambition to scale climate finance across the African continent, as well as our continuous commitment to assist Kenya’s economic growth that is sustainable, productive, and inclusive.”
This is IFC’s second facility with Equity Group Holdings in the last year; the first was a $50 million loan in Congolese francs to Equity BCDC (Equity’s DRC affiliate) to help the bank make extra local currency loans to underserved micro, mid, and medium-sized firms in the DRC.
