In a landmark move poised to reshape the future of micro, small, and medium enterprises (MSMEs) across East and Central Africa, Equity Group Holdings Plc and the African Guarantee Fund (AGF) have expanded their longstanding partnership with a USD 500 million (Ksh 64 billion) guarantee facility.
The transformative initiative is set to unlock up to USD 1 billion in lending and marks the largest single guarantee agreement in AGF’s history.
The strengthened alliance targets MSMEs across Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC), with a strong emphasis on empowering youth and women-led businesses.
With MSMEs recognized as the lifeblood of the continent’s economic engine, this expanded facility is expected to fuel business growth, create sustainable employment, and foster inclusive development.
Catalyzing Access to Finance and Economic Growth
The facility will be implemented in three strategic phases, beginning with a committed tranche of USD 115 million allocated to five of Equity’s subsidiaries.
Over the full course of the program, the guarantee is projected to unlock as much as Ksh 129.5 billion (USD 1 billion) in credit for entrepreneurs who typically face steep challenges in accessing affordable financing.
Dr. James Mwangi, CEO of Equity Group, emphasized the transformative potential of the partnership. “This collaboration is about more than just finance, it’s about creating opportunities for growth, innovation, and sustainability.
It enables MSMEs, especially those led by women and youth, to play a meaningful role in Africa’s economic evolution.”
The initiative is anticipated to support the creation or sustenance of over 50,000 jobs, helping to stabilize local economies and uplift communities through enterprise.
By expanding financial access, the facility aligns with Equity’s broader mission to champion financial inclusion and sustainable economic empowerment.
A Strategic Focus on Sustainability and Gender Inclusion
Central to this collaboration is a shared commitment to sustainability. Both Equity and AGF are prioritizing investments in the green and blue economies, areas focused on climate-resilient agriculture, eco-friendly industrialization, and the sustainable use of ocean resources.
AGF’s Green Guarantee Facility and Equity’s climate financing products will be key vehicles in funding environmentally responsible businesses.
Jules Ngankam, CEO of AGF Group, stated, “We are deeply proud to scale this impactful partnership. The development impact is undeniable, we’re not just facilitating finance, we’re nurturing the next generation of African entrepreneurs, enhancing resilience, and driving innovation that aligns with global sustainability goals.”
In addition to financial tools, AGF will continue to invest in capacity building within Equity Group, particularly around gender-smart investing and technical assistance. This includes staff training aimed at improving outreach and support to women-led enterprises and ensuring long-term, inclusive benefits.
Building on a Proven Foundation
This new chapter builds upon earlier phases of collaboration dating back to 2018, and a 2020 expansion that introduced a USD 75 million facility. That phase resulted in more than USD 160 million in loans to nearly 2,000 MSMEs, including 500 women-led and 900 youth-led enterprises. The successful outcomes of these past engagements underscore the confidence behind this current scale-up.
As both institutions double down on their commitment to MSMEs, this USD 500 million facility is more than a financial instrument, it is a catalyst for Africa’s next wave of business leadership, innovation, and resilience. In the eyes of both partners, the future of Africa’s economy lies in unlocking the potential of its small enterprises and this bold step aims to do just that.
