KENYA – French development finance institution Proparco, has granted Equity Bank two guarantee facilities, ARIZ and EURIZ totaling €39 million (US$45.5 million) to help the Kenyan bank further support job-creating MSMEs.
Proparco also granted a €550,000 (US$641,432) technical assistance facility to support Equity Group Foundation’s health projects.
The EURIZ guarantee and the technical assistance grant benefited from support from the European Union and the Organization of African, Caribbean and Pacific States.
Equity Group is the biggest bank in asset base in the region, with a strong focus on supporting businesses in the real economy and stands out for its continued support to SMEs, women entrepreneurs, and rural populations with products designed to expand opportunities for wealth creation.
The bank is also well-known for its high-impact development programs in Education and Leadership Development, Energy and Environment, Food and Agriculture, Health, Financial Inclusion and Enterprise Development and Social Protection led through the Equity Group Foundation.
“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. It is this shared mission that continues to support and expand opportunities for wealth creation on the continent for our people, and which will allow Africa to thrive and prosper in the post-Covid economy and underpins our collaborations under the French “Choose Africa” and Equity’s post covid Africa resilience and growth plan,” Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings Plc. said.
Over the past three years, Proparco and Equity Bank have grown to become strong partners thanks notably to a US$22.8 million loan granted in 2019 and a US$100 million loan granted in October 2020, both intended to support the Bank’s commitment to Kenya’s MSMEs the actors in the real economy.
On 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 a technical assistance grant.
The first, a €19.5 million (US$22.7 million) ARIZ guarantee will cover 50% of the amount of eligible loans allocated by Equity Bank to Kenyan MSMEs
“Through this partnership with Equity Bank, women entrepreneurs and MSMEs operating in high-impact sectors such as Agriculture, Fisheries, Education and Health will be able to receive loans to expand their business and have greater social impact”
The second, a €19.5 million (US$22.7 million) EURIZ guarantee will cover up to 70% of loans granted to women entrepreneurs or to MSMEs in sectors with high social or societal impacts 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.
The two guarantees, which amount to a total of €39 million (US$45.5 million), are the largest ever granted by Proparco to a financial institution.
They both contribute to Choose Africa, the French initiative dedicated specifically to African entrepreneurs, start-ups, and MSMEs while supporting Equity’s Africa recovery and growth plan.
“With this guarantee facility for the benefit of hundreds of MSMEs including in high social impact sectors such as agriculture and healthcare, Proparco is very proud to further strengthen its partnership with Equity Bank, one of the leading and most innovative banking groups of Africa. Equity Bank’s historical and long-lasting commitment to MSMEs makes it a prominent partner of the AFD Group in the rollout of the Choose Africa initiative launched in 2018 by the French Government,” said Djalal Khimdjee, Deputy CEO of Proparco.
“This is a fantastic example of how Team Europe support can leverage funding to key sectors for inclusive green growth in Kenya. Through this partnership with Equity Bank, women entrepreneurs and MSMEs operating in high-impact sectors such as Agriculture, Fisheries, Education and Health will be able to receive loans to expand their business and have a greater social impact,” said Deputy EU Head of Delegation, Katrin Hagemann.
“We want to see continued progress for our SME and MSMEs as the world opens up and by working together with partners such as Proparco, the European Union (EU) and the European Development Fund, and the Organization of African, Caribbean and Pacific States (OACPS), we are offering our clients a way to empower themselves while creating economic opportunities for wealth creation for our people,” stated Dr. Mwangi.
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