Equity Group Holdings Plc, a Pan-African financial services holding company listed on the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange has secured a $100 million loan facility with Germany’s DEG, the UK’s CDC Group, and the Netherlands FMO to enhance its support towards MSMEs.
The lending facility was secured out of the Group’s commitment to providing support to MSMEs, in order to facilitate their survival and recovery during the pandemic and after the COVID-19 crisis.
In response to the impact of the COVID-19 pandemic, a health crisis that has grown to become an economic and humanitarian crisis, Equity launched an offensive and defensive approach to support customers, and also innovate MSMEs with key focus to leverage the opportunities presented.
The Group has also provided loan repayment accommodation and rescheduling for up to 45% of the customers whose cashflows were deemed likely to be negatively impacted by the COVID-19 pandemic.
What they are saying
Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings Plc while making the announcement stated that, “The impact of the COVID-19 pandemic started as a health crisis, which quickly became an economic and humanitarian crisis that has seen almost 40% of Kenyan small business owners affected by the great economic slowdown.”
Mwangi explained that Equity Group will continue to sustain lives and livelihoods and facilitate the recovery of businesses as the economy begins to reopen. He noted that with the long-term partnership with DEG, FMO and CDC, efforts will be made to support MSMEs to stimulate economic recovery and hence support lives and livelihoods through market optimization.
Christiane Laibach, CEO of the DEG Management Board in her statement the revealed that these facilities strengthen Equity’s position to further enhance the strength of MSMEs who are key actors in the value chains and ecosystems in the economy.
She added that the survival and growth of the MSMEs will continue to protect jobs, create more jobs and support lives and livelihoods in society.
The Head of Office & Coverage Director, CDC, Kenya, Seema Dhanani noted that the partnership with DEG and FMO will help to provide much-needed capital to support entrepreneurs and SMEs in Kenya, as Equity is a natural partner for the DFI community with its mission to change people’s livelihoods through empowering entrepreneurs.
What you should know
- This is the third tranche for Equity Group after securing a $50 million loan facility with IFC in September and a $100 million facility from Proparco in October to fortify credit flows and liquidity to MSMEs.
- In its third-quarter 2020 results, the Group reported a 30% growth in its loan book to support customers who saw opportunities for green shoots and diversifications in the COVID-19 environment.
- Most of the new opportunities funded are in the manufacturing of PPE, logistics, online businesses, agro-processing, fast-moving consumer goods and agriculture value chains.