Home » DRC unit of James Mwangi-led Equity Group secures $11 million from Proparco

DRC unit of James Mwangi-led Equity Group secures $11 million from Proparco

by Feyisayo Ajayi
James Mwangi

Equity Group Holdings, a leading financial services conglomerate led by Kenyan tycoon James Mwangi, is poised to elevate its lending business in the Democratic Republic of the Congo (DRC) through strategic collaboration.

The DRC unit of Equity Group, Equity BCDC, has recently inked a deal with French financier Proparco, which will provide up to €10 million ($11 million) in guarantees for loans to small businesses in the central African nation.

The partnership with Proparco, the private sector arm of Agence Française de Développement (AFD) Group, aims to enhance Equity BCDC’s financing options, particularly for small and medium-sized enterprises (SMEs), including those owned by women and youth.

The guarantee scheme is designed to foster risk-sharing and promote the expansion of Equity BCDC’s lending capacity in support of high-impact SMEs.

“We are grateful for this guarantee, as it enables us to increase further our support for SMEs, especially those owned by women and young adults. It aligns perfectly with Proparco’s new 2023-2027 strategy,” Proparco said.

Equity Group‘s DRC unit, Equity BCDC, expects the new facility to strengthen its operations and contribute to higher earnings, building upon its impressive financial performance throughout 2022.

The conglomerate has been successful in its regional expansion strategy, evident through its established presence in Uganda, Tanzania, South Sudan, Rwanda, and the DRC. With this extensive reach, Equity Group solidifies its position as the largest financial services group in East and Central Africa.

Under the leadership of Kenyan businessman Mwangi, who holds a 3.38-percent stake in the company, Equity Group reported a remarkable 15-percent increase in profits in 2022. The company’s profits reached Ksh46.1 billion ($350 million), up from Ksh40.07 billion ($304.2 million).

This growth was predominantly driven by a 25-percent rise in net interest income, totaling Ksh85.99 billion ($653 million), and a 34-percent expansion in non-interest income, amounting to Ksh59.94 billion ($455.1 million).

Equity BCDC, Equity Group’s DRC unit, also experienced substantial growth, with its profit after tax surging by 45 percent to Ksh5.8 billion ($41 million) in the fiscal year ending December 2022.

This further solidifies Equity BCDC’s position as the most profitable subsidiary within the Equity Group, followed by its Rwandan unit with profits of Ksh2.8 billion ($20 million).

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