Table of Contents
Key Points
- Equity Group partners with DEG to establish the German Desk in East Africa, supporting SMEs and fostering Germany-East Africa trade ties.
- The German Desk offers trade facilitation, credit lines, and access to German technology, boosting cross-border business collaborations.
- Equity Group’s 9M 2024 profit rose 13.09% to $317.4 million, fueled by regional expansion and financial inclusion initiatives.
Equity Group, East Africa’s financial services provider led by Kenyan banker James Mwangi, has launched a strategic partnership with Germany’s Development Finance Institution (DEG). The collaboration introduces the German Desk in East Africa, designed to facilitate stronger trade relations and economic ties between East Africa and Germany.
The initiative will focus on enhancing support for small and medium-sized enterprises (SMEs) in both regions. Tailored services such as trade facilitation, transaction banking, credit lines, and access to German technology and equipment will be provided.
Backed by the German Chamber of Commerce and Industry (DIHK), the German Desk aims to streamline cross-border trade, helping businesses navigate the challenges of international expansion.
Supporting European SMEs in East Africa
Petra Kotte, Senior Director of Infrastructure, Energy, and German Business at DEG, emphasized that the partnership aligns with the organization's broader goals of supporting German businesses in Africa. "This partnership opens new opportunities for businesses to tap into the East African market," Kotte said.
Equity Group CEO James Mwangi described the launch of the German Desk as a major milestone for the bank’s international expansion. "The initiative will enhance integration between German and European businesses with the dynamic East African market, advancing the Africa Recovery and Resilience Plan," Mwangi said.
He also noted the importance of the private sector in reshaping Africa’s position in the global economic order, citing Europe, especially Germany, as a key partner in this transformation.
Strengthening trade ties between Germany and East Africa
The partnership builds on the steady growth of trade between Germany and Kenya, particularly in sectors such as automotive, machinery, and chemicals.
With support from Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK), the German Desk is expected to foster greater business connections and financial services, deepening the integration of East African economies with global markets.
German Ambassador to Kenya, Sebastian Groth, lauded the initiative, calling it “a testament to the deepening economic ties” between Germany and Kenya. Groth added that the project would positively impact both business growth and regional socio-economic development.
Equity Group’s regional expansion and profit surge
Equity Group has seen strong regional growth, expanding its presence in East and Central Africa, with operations in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo.
The bank’s profit for the first nine months of 2024 surged 13.09 percent to Ksh40.94 billion ($317.40 million), up from Ksh36.2 billion ($280.67 million) in the same period last year. This growth has been driven by the group’s diversified regional footprint.
Additionally, the group’s flagship subsidiary, Equity Bank, recently secured $20 million to enhance financial inclusion in Kenya’s refugee-hosting regions, further supporting marginalized communities.
