Equity Group and African Guarantee Fund Seal Historic $500M Deal to Boost MSMEs Across Africa
Equity Group Holdings Plc and the African Guarantee Fund (AGF) have renewed and expanded their strategic partnership through a landmark USD 500 million framework aimed at accelerating access to credit for Micro, Small, and Medium Enterprises (MSMEs) across the region.
The agreement touted as the largest single guarantee facility in AGF’s history will enable Equity Group to unlock up to USD 1 billion in financing for MSMEs over the next decade, with the potential to create or sustain more than 50,000 jobs in Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC).
The facility is also expected to extend to future subsidiaries of the Group.Building on a robust partnership established in 2018 and expanded in 2020 with a USD 75 million commitment, the renewed collaboration will be rolled out in three phases, starting with an initial USD 115 million tranche already earmarked for the five core subsidiaries. The financing will target high-impact sectors, particularly women-owned, youth-led, and environmentally sustainable enterprises.
Speaking on the renewed partnership, Equity Group Managing Director and CEO, Dr. James Mwangi, said, “This expanded partnership with AGF underscores our shared vision of empowering MSMEs, the backbone of African economies. By enhancing access to finance, we are investing in communities, preserving jobs, and driving inclusive growth.”
Dr. Mwangi further noted that the initiative aligns with Equity’s Africa Recovery and Resilience Plan (ARRP), which focuses on catalyzing growth through strategic partnerships and targeted support to priority sectors such as agriculture and green enterprises.
AGF Group CEO, Jules Ngankam, emphasized the development impact of the partnership, saying, “This renewed agreement strengthens our footprint in the region and supports Equity to scale SME lending. We expect to see more businesses transitioning from small to medium size, increased employment, and deeper financial inclusion.”
The initiative also benefits from Equity’s collaboration with the African Development Bank through the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, which aims to unlock USD 3 billion in funding for women-led SMEs.
A significant portion of the AGF guarantee will be allocated toward women entrepreneurs, coupled with technical support from Equity Group Foundation to bridge the gender finance gap.
Additionally, the partnership includes support for Green Financing and Blue Economy projects through AGF’s Green Guarantee Facility and Equity’s innovative environmental initiatives. AGF will also provide capacity building to Equity’s staff, with a special emphasis on gender-smart investing.
Equity Group and AGF reaffirmed their joint commitment to delivering measurable outcomes aligned with the UN Sustainable Development Goals (SDGs) and Africa’s Agenda 2063, aiming to transform lives through inclusive and sustainable finance.
