FACILITY

Proparco grants Equity Group Sh5billion to support SMEs

The deal strengthens the lender's partnership with Proparco to support small businesses in Kenya

In Summary
  • The institution also granted a €550,000(Sh70million) technical assistance facility to support Equity Group Foundation’s health projects.
  • The first, a €19,5 million (Sh2.5 billion) ARIZ guarantee will cover 50 per cent of the amount of eligible loans allocated by Equity Bank to Kenyan MSMEs.
Equity Bank CEO James Mwangi
Equity Bank CEO James Mwangi
Image: FILE

Development Finance Institution, Proparco, has granted Equity Bank €39 million (Sh5billion) to help the lender further support small businesses

The institution also granted a €550,000(Sh70million) technical assistance facility to support Equity Group Foundation’s health projects.

“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” said James Mwangi, Managing Director and CEO of Equity Group.

Over the past three years, Proparco and Equity Bank have grown to become strong partners thanks notably to a $22.8 million loan granted in 2019 and a $100 million loan granted in October 2020, both intended to support the Bank’s commitment to Kenya’s MSMEs.

On the occasion of the visit to Kenya of the French Minister Delegate for Foreign Trade and Economic Attractiveness, Franck Riester, Proparco and Equity further strengthened their relationship by signing two new guarantees and of a technical assistance grant.

The first, a €19,5 million (Sh2.5 billion) ARIZ guarantee will cover 50 per cent of the amount of eligible loans allocated by Equity Bank to Kenyan MSMEs.

The second, €19,5 million (Sh2.5 billion) EURIZ guarantee will cover up to 70 per cent 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.

Launched in May 2019 with the support of the European Union (EU) and the European Development Fund, and the Organization of African, Caribbean and Pacific States (OACPS), the EURIZ guarantee aims to facilitate access to credit for MSMEs, in particular in sectors with a high development impact, in order to help them play their essential role in economic growth and job creation.

These initiatives will contribute to several Sustainable Development Goals, including #3 (Good Health and Well Being), #5 (Gender Equality) and #8 (Decent Work and Economic Growth).