Equity Group Holdings Plc and the African Guarantee Fund (AGF) have announced the renewal and expansion of their strategic partnership with a USD 500 million (KES 64 billion) framework aimed at accelerating access to finance for Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.
Targeting Women, Youth, and Green Enterprises
This initiative, the largest single guarantee engagement in AGF’s history, aims to unlock USD 1 billion in MSME financing through Equity Group, with a core focus on:
- Women-owned businesses
- Youth-led enterprises
- Green and blue economy projects
It also supports Equity’s Africa Recovery and Resilience Plan (ARRP), designed to promote inclusive economic development through strategic partnerships, capacity building, and sustainable lending.
Job Creation and Regional Reach
The renewed framework is projected to create or sustain over 50,000 jobs in the region. The partnership targets Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC), with future plans to include new Equity subsidiaries over the next decade.
“This expanded partnership underscores our shared vision of empowering MSMEs, the backbone of African economies,” said Dr. James Mwangi, Group CEO of Equity Group. “It’s about financing high-impact sub-sectors—agriculture, women- and youth-led enterprises—and unlocking transformative growth across the region.”
A Three-Phase Rollout
The new partnership will be implemented in three phases:
- Phase 1: Already active with USD 115 million committed to Equity’s five key subsidiaries.
- The framework will provide loan guarantees to MSMEs through AGF’s Green Guarantee Facility and AFAWA (Affirmative Finance Action for Women in Africa) partnerships.
- Equity’s foundation will offer technical assistance, especially for women entrepreneurs.
To date, the AGF–Equity partnership has already unlocked:
- USD 160 million in loans
- For nearly 2,000 MSMEs
- Including 500 women-led and 900 youth-led businesses
Driving Sustainable Development
According to Jules Ngankam, CEO of AGF, the renewed partnership enhances AGF’s ability to deliver real impact by:
- Growing businesses from small to medium scale
- Increasing employment
- Promoting gender-smart investing
- Strengthening environmental sustainability
AGF will also continue to support Equity Group through its Capacity Development initiative, offering training to bank staff and enhancing their ability to assess and support diverse business clients—particularly women-led enterprises.
Supporting Africa’s Agenda 2063 and SDGs
This scaled-up facility aligns with global and continental goals, including:
- The United Nations Sustainable Development Goals (SDGs)
- The African Union’s Agenda 2063
The Equity–AGF partnership demonstrates the growing importance of guarantee-based financing frameworks in addressing structural gaps in African MSME funding, especially for women, youth, and climate-smart projects.
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