Equity Group Holdings Plc and the African Guarantee Fund (AGF) have renewed and expanded their partnership with a $500 million agreement to support Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.
The new deal aims to unlock $1 billion in loans for small businesses and help create or maintain over 50,000 jobs.
This partnership builds on their earlier work, which began in 2018 and was later strengthened with a $75 million facility in 2020.
The latest deal is the biggest guarantee agreement in AGF’s history and will cover Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC), with plans to include more countries where Equity operates over the next 10 years.
The new funding will be rolled out in three phases. The first $115 million has already been committed to five key countries. The loans will mainly support women-owned, youth-led, and environmentally friendly (green) businesses. So far, the partnership has helped release over $160 million in loans to nearly 2,000 MSMEs, including 500 run by women and 900 led by young people.
Dr. James Mwangi, Equity Group CEO, said the partnership reflects their joint goal of supporting MSMEs, which are crucial for Africa’s economy. “We want to focus on areas that make a big difference, like agriculture and businesses led by women and youth. These are central to our Africa Recovery and Resilience Plan,” he said.
AGF CEO Jules Ngankam added that this renewed partnership will help businesses grow and create more jobs across the region.
The initiative is also linked to Equity’s work with the African Development Bank under the AFAWA (Affirmative Finance Action for Women in Africa) program. AFAWA aims to unlock $3 billion for women-led businesses by offering guarantees and technical help.
Equity and AGF are also working together to support eco-friendly businesses and sustainable water-based (blue economy) projects. AGF will provide training for Equity staff to improve gender-focused investing.
Both institutions say they are committed to helping MSMEs grow in line with the UN’s Sustainable Development Goals and Africa’s Agenda 2063 by making sure financial services are accessible to everyone.