Equity Fund and African Guarantee Pumps Ksh64 Billion to Finance MSMEs

Equity Group Holdings Plc and the African Guarantee Fund (AGF) have strengthened their commitment to supporting Micro, Small, and Medium Enterprises (MSMEs) by renewing and expanding their strategic partnership through a Ksh64 billion framework.

This facility will enable Equity Group to scale its lending activities to MSMEs, unlocking Ksh129 billion in financing for these businesses. The initiative is projected to create or sustain over 50,000 jobs.

The foundation to this multi-billion shillings deal was set in 2018, with 2020 seeing a Ksh9.7 billion facility built. The renewed partnership represents the largest single guaranteed engagement since AGF began in 2011.

AGF’s 10-Year Plan

AGF targets MSMEs in Kenya, Tanzania, Uganda, Rwanda and the Democratic Republic of Congo (DRC), with plans to extend to future Equity Group subsidiaries in the next decade.

The framework will be implemented in three phases, with an initial Ksh14.8 billion committed to cover loans to MSMEs which are women-owned, youth-led and green enterprises.

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“This expanded partnership with the African Guarantee Fund underscores our shared vision of empowering MSMEs, which are the backbone of African economies. By enhancing access to finance and promoting sustainable business practices, we are investing in the future of our communities, preserving jobs and driving inclusive growth across the region. We see a unique opportunity to deepen our focus on high-impact SME sub-sectors, including agriculture, women- and youth-led enterprises, among others. These are central to our Africa Recovery and Resilience Plan (ARRP), which emphasises the power of collaboration and strategic partnerships to unlock transformative growth.” Equity Group Managing Director and CEO Dr James Mwangi said.

Huge boost for women 

The partnership leverages Equity’s African Development Bank partnership under the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, which aims to unlock up to Ksh3.8 billion in financing for women SMEs in Africa through financial institutions.

A substantial portion of the risk-sharing mechanism between AGF and Equity will offer women entrepreneurs increased guarantee cover along with technical assistance as provided by the Equity Group Foundation, to help reduce the gender finance gap.

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The two institutions have also collaborated to support Green Financing and Blue Economy activities through AGF’s Green Guarantee Facility and Equity Group’s pioneering solutions for sustainable coastal and freshwater livelihoods.

AGF, in addition, promised to continue supporting Equity Group through its Capacity Development initiative by offering comprehensive training programs for the bank’s staff with a special focus on enhancing gender-smart investing.

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