Equity Receives Sh11bn Loan From AfDB for Regional Expansion

Equity Bank Group has received Sh11 billion credit from the African Development Bank (AfDB) for operational expansion in East and Central Africa.

The loan, with a seven-year maturity, is expected to promote Equity’s ability to offer tailored products to Micro, Small, and Medium Enterprises (MSMEs), strengthen its balance sheet and optimize its capital structure across the continent. The amount would also help boost its ability to serve small and medium enterprises (SMEs) in the region.

James Mwangi, the Managing Director and CEO of Equity Group Holdings, said that together with AfDB, they are strongly positioned to support small businesses to keep them afloat during the prevailing Covid-19 pandemic that has slowed down the economy.

“We have seen the impact of pumping oxygen to our MSMEs during this period. They have been able to re-imagine, repurpose and retool their enterprises and emerged more resilient thereby protecting jobs and creating new ones,” said James. “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.”

The amount comes barely a week after the group signed a Sh16.5 billion loan facility with the European Investment Bank (EIB) and the European Union (EU) to support small businesses. Since last September, Equity has received a total of Sh63.25 billion to support MSMEs.