The African Development Bank and Equity Group Holdings (EGH) have signed a $100 million (Kshs 11 Billion) loan facility to support the commercial bank's expansion across Eastern and Central Africa, enhancing its ability to serve small and medium enterprises as it grows.
The loan, a tier two facility with a seven-year maturity, is expected to promote EGH's ability to offer bespoke products to MSMEs, strengthen its balance sheet and optimize its capital structure across the continent with a special focus on women and youth entrepreneurs.
Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings said, "together with the African Development Bank Group, Equity Group will be strongly positioned to support MSMEs to keep their lights on during the prevailing COVID-19 pandemic that has slowed down the economy impacting on the cashflow of enterprises. We have seen the impact of pumping oxygen to our MSMEs during this period. They have emerged more resilient thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing of internationally certified quality PPEs," he said
"Access to finance represents a significant barrier to SMEs in many African markets, one that has sharpened as a result of the ongoing pandemic," said Stefan Nalletamby, the African Development Bank's Director for financial sector development. The timing of the facility could not have been more appropriate especially as businesses seek to remain operational in the midst of a COVID-19 pandemic that is causing financial havoc."
He also noted that the loan is aligned with a number of the Bank's High-5 strategic objectives, including improve the quality of life for the people of Africa, Feed Africa, Light up and Power Africa, and Industrialize Africa.
About Equity Group Holdings, Plc:
Equity Group Holdings (EGH) is a Pan-African financial services holding company listed on the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange. The Group has banking subsidiaries in Kenya, Rwanda, Uganda, South Sudan, Tanzania, and DRC where it recently acquired BCDC to form Equity BCDC, the country's second-largest financial services company. Also, EGH has a representative office in Ethiopia. Equity Group, with an asset base of over $10 billion and over 14.2 million customers, is one of the region's biggest banks by customer base. Since 2008, the Group's corporate foundation, Equity Group Foundation, has delivered humanitarian programs in Education and Leadership, Food and Agriculture, Social Protection, Health, Clean Energy and the Environment, Enterprise Development and Financial Inclusion to millions of Africans. EGF's networked health care provider, Equity Afia, has been supporting COVID-19 relief efforts.
For more information, please visit: https://equitygroupholdings.com/
Contact:
Olufemi Terry, Communication and External Relations Department, Email: o.terry@afdb.org
Alex Muhia, Equity Group Holdings Plc.T: Office - 0763 026007 : Mobile - 0763 618871, email: CorporateCommunications@equitybank.co.ke E: Alex.Muhia@equitybank.co.ke
