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Equity Group Holdings, a leading financial services group led by Kenyan businessman James Mwangi, has signed a memorandum of understanding with the East African Community (EAC) to accelerate regional growth and economic resilience through a $6-billion regional economic stimulus plan.
The agreement was signed Thursday at the EAC Ordinary Heads of State Summit by Mwangi, CEO of Equity, and EAC Secretary-General Peter Mathuki. The deal seeks to provide much-needed support for small and medium-sized businesses, which account for the majority of the region’s GDP.
The development comes nearly four months after Equity Group launched a $6-billion private-sector-focused stimulus package to expedite economic recovery and resilience in East and Central Africa.
In light of the recent EAC agreement, Mwangi stated that the world is looking for an alternative manufacturing hub, and the memorandum will allow the business community to operate within the framework of EAC protocols.
He stated that Equity Group has set aside a total of $2 billion for regional entrepreneurs, while waiting for additional funding from development financiers such as the International Finance Corporation, African Development Bank, and European lenders.
Mwangi went on to say that Equity Group will look to fund farmers in the region, particularly those growing palm oil, in an effort to increase the production of edible oil, which is presently in short supply on the global commodities market due to the Russia-Ukraine conflict.
Under Mwangi’s leadership, Equity Group has grown into the largest financial services group in East and Central Africa. According to Brand Finance, it has the world’s fifth-best banking brand.
According to a quarterly filing released on May 14, its profit increased by 36 percent in the first quarter of 2022, from Ksh8.7 billion ($74.9 million) in the first quarter of 2021 to Ksh11.9 billion ($102.4 million) in the same period of 2022.
Equity Group has been actively involved in the growth and development of East African countries.
In June, the Nairobi-based banking group announced plans to invest $100 million through its venture capital arm, Equity Holding, in the construction of Kigali Financial Towers.
According to Equity Group Holdings, the twin towers, which are set to open in the Kigali International Financial Center in two years, will play an important role in attracting financial institutions to Rwanda, including investment banks.
