Equity Group Holdings, Kenya’s largest financial services group led by renowned banking tycoon James Mwangi, has proposed a medium-term plan to support at least 5 million micro, small, and medium enterprises (MSMEs) as part of its post-COVID-19 recovery strategy.
The leading financial services group unveiled the medium-term plan on Wednesday during a digital trade mission to Tanzania as part of its commitment to assist small businesses with active operations in the manufacturing and agriculture sectors.
It stated that the MSMEs that will receive funding under the new plan are expected to generate at least 5 million jobs, noting that one business can generate five direct jobs and a similar number indirectly.
In addition, the financial services group announced that it will also extend credit to at least 100 million East African Community (EAC) customers as part of a concerted effort to drive sustainable growth in the local economy.
Equity Group Holdings Limited, the largest financial services group in East Africa, ranks as the second most valuable company on the Nairobi Securities Exchange (NSE), with a market capitalization of Ksh170 billion ($1.4 billion), accounting for about 8.41 percent of the NSE’s total share capitalization.
Mwangi, who was instrumental in the growth and transformation of Equity Group, owns a sizable 3.38-percent stake in the company, totaling 127,809,180 shares.
Under his leadership, Equity Group earlier this year signed a memorandum of understanding with the EAC to accelerate regional growth and economic resilience through a $6-billion regional economic stimulus plan.
Through the economic stimulus plan, the financial services group revealed that it will provide much-needed support for small and medium-sized businesses, which account for the majority of the region’s GDP.
The group has allocated a total of $2 billion for regional entrepreneurs as part of its decision to support businesses while it waits for additional funding from development financiers like the International Finance Corporation, the African Development Bank, and European lenders.