Equity Group and the International Finance Corporation (IFC) have signed a KSh 19 billion (USD 165 million) partnership that seeks to finance at least 5 million Micro-, Small and Medium-sized Enterprises (MSMEs) and 25 million households.
The credit facility of USD 165 million includes USD 50 million from IFC, USD 50 million from British International Investment (BII) and USD 65 million from Symbiotic, Responsibility and FMO, the Dutch entrepreneurial development bank and a long-time shareholder in Equity through Arise Investments.
As part of the deal, Equity Group commits to zero lending for coal-related projects.
Further, Equity Group has agreed to allocate USD 80 million equity towards climate-related interventions covering all subsidiaries over the next 5 years.
“As Equity Group, we are delighted to welcome IFC, a member of the World Bank Group to the Equity family as our second largest shareholder. With IFC’s reach as the largest global development institution focused on the private sector equity, we will be able to further advance economic development by empowering and catalyzing the transformation of the lives and livelihoods of the African people and will enhance the success and sustainability of Equity’s ‘Africa Recovery and Resilience Plan’,” Dr James Mwangi, Equity Group Managing Director and CEO.
Equity’s Africa Recovery and Resilience Plan has been built on five key pillars hinged on its twin engine: the social engine and the economic engine -Food and Agriculture, Manufacturing and Logistics, Trade and Investment, Micro, Small, and Medium Enterprises (MSMEs), and Social and Environmental Transformation.
Through its social impact initiatives, Equity will continue investing in the social transformation and environmental impact of communities within East and Central Africa to drive inclusive growth.