Equity Group, African Guarantee Fund seal Sh64bn deal to empower African MSMEs
The facility is projected to unlock Sh129.5 billion (USD 1 billion) in credit.
Equity Group Holdings Plc and the African Guarantee Fund (AGF) have renewed and scaled up their strategic partnership through a landmark Sh64 billion (USD 500 million) agreement aimed at boosting access to finance for Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.
The facility is projected to unlock Sh129.5 billion (USD 1 billion) in credit and help sustain more than 50,000 jobs, with a strong focus on empowering women and youth.
In a joint statement, the two organizations described the deal as the largest single guarantee arrangement in AGF’s history.
The initiative will benefit MSMEs in Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC), with plans to extend to other Equity Group subsidiaries over the coming decade.
"This expanded partnership with the African Guarantee Fund underscores our shared vision of empowering MSMEs, which are the backbone of African economies. Through this initiative, we’re not only promoting financial access but also preserving jobs and fostering sustainable growth across the region," said Equity Group Managing Director and CEO Dr. James Mwangi.
AGF Group CEO Jules Ngankam emphasized the partnership’s transformative potential, stating that the renewed collaboration with Equity Group will broaden their reach and amplify their influence across the region.
"We anticipate more job creation, the scaling up of small enterprises into medium-sized businesses, and a boost in overall economic resilience," he noted.
The expansion will unfold in three distinct phases, starting with an initial commitment of USD 115 million (Sh18.86 billion) allocated to five of Equity Group’s key subsidiaries.
This latest agreement builds on a strong alliance established in 2018 and reinforced in 2020 with a USD 75 million (Ksh.9.7 billion) facility.
That initiative has already facilitated the distribution of over USD 160 million (Sh20.6 billion) in loans to nearly 2,000 micro, small, and medium enterprises (MSMEs), including 500 women-led and 900 youth-led ventures.
In addition, both institutions are actively promoting sustainable finance, with a focus on green and blue economy initiatives that support environmentally conscious and climate-resilient projects.
Leveraging AGF’s Green Guarantee Facility alongside Equity’s forward-looking financing models, the partnership aims to empower enterprises engaged in eco-friendly coastal and freshwater livelihoods.
Additionally, AGF will maintain its role in strengthening Equity Group’s internal capacity through ongoing staff training, with a particular emphasis on gender-smart investing, ensuring that support for MSMEs remains both inclusive and impactful.
