Equity Group has signed a USD 100M (Sh11B) loan facility to support its expansion across Eastern and Central Africa, enhancing its ability to serve small and medium enterprises (SMEs) as it grows.
The facility will support Equity’s expansion in East and Central Africa and ensure MSMEs have access to capital to recover and thrive in a post Covid-19 environment.
Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings said that together with African Development Bank Group (AfDB), 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 cashflows of enterprises.
“By extending credit to them during this period, Equity demonstrates its commitment to walk with its customers, and to empathize with their social economic situation brought about by the pandemic,” he said.
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.
Stefan Nalletamby, AfDB’s Director for financial sector development said that they are very pleased to collaborate with Equity Group Holdings in playing a countercyclical role during this pandemic.
“The timing of the facility’s disbursement couldn’t be more appropriate especially as MSMEs seek to remain operational in the midst of a Covid-19 pandemic, causing financial havoc,” she said.
