The Governor was speaking at the official opening of the final leg of the Kenya-DRC Trade Mission held in Mbuji-Mayi town, some 1,600 kilometers northwest of the capital Kinshasa, where the first meeting took place on 29 November.

“It is an honour to welcome you to the Great Kasai region. We express our gratitude for your delegation’s arrival. This is a historic moment. The Trade Mission shows that Kasai has potential and has given our people hope that together we can explore avenues for business development. EquityBCDC’s decision to choose Mbuji-Mayi as the final stop for the Trade Mission is a clear indication that the Bank is a great catalyst of development in the Great Kasai region,” she said.

The visit to Mbuji-Mayi by the delegates from Kenya and DRC was a culmination of a bilateral agreement signed by President H.E. Uhuru Kenyatta of Kenya and his counterpart President H.E. Felix Tshisekedi of the DRC in April 2021 to create closer ties between the two countries, particularly along the issues of trade, manufacturing, and agriculture. The MOU was signed during a State visit of the Kenya President to the DRC, where he also commissioned the opening of the EquityBCDC tower in Kinshasa.

Governor Musuamba shared a comprehensive profile of the province in Central DRC that has the longest section of the mighty Congo River, illustrating the opportunities for investment that exist in infrastructure development, agriculture, mining, tourism, energy, internet connectivity, water utilities and other sectors.

“With a population of 55 million people whose average age is 20 years old, employment can be created by stimulating production through consumption. We have a tropical climate that is conducive to farming. Most of our land is arable. Among crops that can be grown here are cassava, corn, soya, peanuts, sweet potatoes, and fruits like pineapples, papaya, and avocados. With the adequate arable land and two rainy seasons, farming potential in Great Kasai can enable DRC to achieve food self-sufficiency,” she said.

Beyond agriculture is the mining of diamonds, iron, gold, cobalt, and other minerals, which provides a lucrative investment opportunity. “Serious exploitation can be explored for processing diamonds and other minerals at an industrial level. We also have massive deposits of construction materials like sand and granite, which exists in many areas,” said the Governor adding that the demand for suitable housing remains insatiable.   

However, said the Governor, these opportunities come with challenges. She cited transport and reliable energy as needs and urged investors from both the DRC and Kenyan entrepreneurs to work with EquityBCDC (the DRC subsidiary of Equity Group Holdings) that has already established itself as the largest financial institution in the province, despite the challenges.  

“To invest, be ready to tackle challenges. There is the challenge of electricity or more particularly lack of it and poor roads that inhibit transport to and out of this province. These challenges are not insurmountable given the benefits that are certain upon investment,” said H.E Dieudonne Piemme, Governor Kasai Province.

“By partnering together, we can solve challenges that affect the African continent including hunger, health issues and poverty by allowing businesses to be the driving force for continental change. This is the first time that businessmen and women of our two great nations have come together to purposefully explore business opportunities,” said Equity Group Chief Commercial Officer, Polycarp Igathe, as he implored delegates to take advantage of the physical attendance of the meeting by the Kenyan delegates to connect.

To reciprocate the visit of Kenyan entrepreneurs to the DRC, Equity is looking forward to hosting DRC business leaders on a similar mission to the Kenyan cities of Nairobi, Mombasa, Nakuru, and Kisumu in early 2022 to seek cross border opportunities for investment for the benefit of developing the two countries.

Kenya’s Ambassador to the DRC, Ambassador George Masafu said, “The mission by the Kenya Government to the DRC, in partnership with Equity Group, was not in vain and indeed, the meeting in Mbuji-Mayi was a turning point for Kenya and the DRC. The trade mission was a labor of love that seeks to fulfill the objective of President Kenyatta’s bilateral agreement signed in April, putting words into action for our two great nations.”  He added, “A political goodwill was built when President Uhuru Kenyatta and President Felix Tshisekedi shook hands in April this year. The political goodwill by our two presidents is fueling interest and growth for business opportunities in the DRC and by working together, we set pace for other African countries to partner with DRC,” said Amb. Masafu.

EquityBCDC Managing Director, Celestin Mukeba said, “This Trade Mission was organized with the sole purpose of unlocking trade, tourism and investment opportunities in DRC and this is already bearing fruit. Equity’s vision and mission is to transform lives and livelihoods, and to give dignity through wealth creation. It is in this vein of expanding wealth that Equity has brought more than 300 Kenyans to DRC in four cities for networking and matchmaking.”

Celestin urged the investors to tap into the USD5 billion availed to companies and small and medium-sized enterprises by Equity, as part of efforts to integrate the region through trade and investments. “We want the DRC to be the first to utilize the liquidity that Equity has to resolve mammoth challenges in energy, food security, and mining,” said Mukeba. He added, “Remember development cannot happen unless people synergize with the government, especially for infrastructure. For the private sector, it is important to tap into the opportunities.”

The Kenya-DRC Trade Mission 2021, a partnership between the Government of Kenya, the Government of the DRC, and Equity Group Holdings saw cumulatively over 300 Kenyan investors and business people visit DRC and a delegation of over 7,000 attend the conferences and business networking sessions across the four cities

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The schools’ calendar was disrupted last year after the students were grounded for the last school year due to COVID-19.

Children deserve to go to school, and it is prudent to make it easy for parents and the government to provide them with this basic right. Banks continue to support the development of the education sector, with offerings that are targeted at reducing the financial burden on parents, students, and schools, and by facilitating the ease of payment of fees without hassles and in meeting other specific needs.

This is usually a hectic season especially for working parents who usually have to queue for long hours at bookshops and school uniform outlets as they buy supplies for their children. Scenes of long queues around banks on school opening days as parents try to pay school fees are not that uncommon.

With advances in technology, the situation is getting better. As learners went back to school this week, the queues were shorter with many parents embracing solutions that enable them to shop online and pay school fees directly to the school collection accounts without setting foot at their bank branches.

Equity under its digital strategy has continued to be a leader in this field, providing customers with an array of payment solutions. These efforts are geared towards enhancing the customers’ overall banking experience, delivering convenience and maximizing value to them especially in this pandemic era while maintaining the set guidelines by the Ministry of Health.

To ease the strain by paying school fees straight from your phone through Equity Mobile App, *247# or Equitel. Equity similarly offers credit facilities for school fees and top-ups for parents who may require the service. Eazzy Loan can easily be accessed through dialling *247# on any network.

Many parents and children flock to the markets and e-platforms to buy uniforms, stationery, shoes, and other items, to make payments they can use their Equity credit and debit cards at any Visa, AMEX or Mastercard branded merchant at no extra cost. Additionally, to enhance safety and better budgeting with the relaunched prepaid card, parents and guardians can top up the card with pocket money for their children.

With the development of a new curriculum and its implementation, most schools are going through infrastructural advances. The bank through its SME and corporate offering has tailormade credit facilities available to educational institutions to meet these needs. The schools can easily access working capital and loans through their Equity nearest branches. The features of this pack include easy fee collections, and other value-add services for online banking and real-time finance management tools via EazzyBiz.

The SDGs note that there has been major progress in education access, specifically at the primary school level, for both boys and girls. However, access does not always mean the quality of education or completion of primary school. Mobilizing additional resources for education in tackling some of the basic needs for schools and students is not something that education systems can solve on their own. Hence the need for a reliable financial partner to walk the journey with them.

Photo by Katerina Holmes from Pexels

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Speaking during the signing ceremony, Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings stated that, “With this facility from African Guarantee Fund, whom we share a mission of supporting women MSMEs, we will be strongly positioned to continue to offer our customers particularly women in business access to funding at a time when the COVID-19 pandemic continues to impact negatively on businesses. Women MSMEs are key players in driving livelihoods for the majority of families, communities and growth of the economy.

“This support in the form of a guarantee fund will mitigate the credit risk Equity is exposed to as we continue to work with women MSMEs to navigate through these uncertain times and keep the lights of the economy on. This will ensure livelihoods and opportunities within the economy continue to accelerate as we revitalize economic activities to enable the economy to bounce back amidst the rollout of the vaccine. Our commitment is to continue working with MSMEs to finance them to recover and thrive, and where necessary transform and adapt their businesses to the changing environment and seize new business opportunities.”

In response to the COVID-19 crisis, Equity launched an offensive and defensive approach to support customers to sustain themselves while innovating alongside MSMEs who are leveraging on the opportunities that have presented within the crisis.

The Group committed to loan repayment accommodation for up to 45% of the customers whose cashflows and operation cycle was deemed likely to be negatively impacted during the COVID-19 pandemic.

Equity made the prudent decision to ensure cashflow was not impaired and in its third-quarter 2020 results, reported a 30% growth in its loan book in support of its customers who saw opportunities for green shoots and diversifications in the COVID-19 environment. Most of the new opportunities funded were in the manufacturing of PPE’s, logistics, online businesses, agro-processing, fast-moving consumer goods and agriculture value chains.

Equity’s prudent approach to conserving its cashflow and supporting MSMEs through the COVID-19 crisis has provided confidence to its lending partners.

AGF Group CEO Jules Ngankam said, “Our partnership with Equity Group is of great significance to the economies of Kenya, Rwanda, Uganda and the DRC given our mutual focus on the SME sector which has massive potential to drive economic growth. This partnership will also foster sustainable development particularly for women-led/owned businesses who will be supported under our Affirmative Finance Action for Women in Africa initiative and green business who will be supported under our Green Guarantee Facility. Working with Equity Group indeed provides us with a broad opportunity to create impact alongside their various initiatives.”

This is the fifth tranche for Equity Group after having signed a $50 million USD (Ksh 5.5 Billion) loan facility with IFC in September; a $100 million USD (Ksh 11.0 Billion) from Proparco in October and a EUR 125 million (Ksh 16.5 Billion) loan facility signed two weeks ago with the European Investment Bank and a US $100 Million (Ksh 11 Billion) Credit Facility with Leading European Development Banks DEG, FMO and CDC-UK to fortify credit flows and liquidity to MSMEs totaling Ksh 52.25 Billion.

The post Equity Signs New Sh 8 Billion Deal To Support to SMEs in Kenya, Uganda, Rwanda & DRC appeared first on Biz Post Daily.

Dubbed the ‘Clean Cooking Project’, the initiative aims at supporting learning institutions to install modern technologies for cooking that are environmentally safe such as steam-based cooking, biofuels, sustainable biomass and Liquid Petroleum Gas (LPG). Equity will provide financing for the equipment and other installation costs based on an institution’s needs.

Speaking during the launch of the initiative at Alliance High School, Equity Group Managing Director and CEO, Dr. James Mwangi said, “Wood-fuel is not a sustainable model for our planet as it has led to adverse environmental degradation and depletion of our much-needed forest cover. Lack of appropriate financing and innovative technologies has been the biggest barrier to clean energy transition. To close this gap, we have decided to partner with learning institutions to facilitate them access and install more environmentally friendly cooking and lighting facilities”.

According to the Clean Cooking Alliance of Kenya (CCAK) study on ‘Use of Biomass Cookstoves and Fuels in institutions in Kenya report of 2018’, 97% of primary and secondary schools use firewood derived from forests as cooking fuel. This counters the Kenya government efforts of attaining the constitutional requirement of 10 percent forest cover.

“We decided to create a more integrated programme to ensure trees would grow to maturity and not be used as an energy source. For us to migrate from wood-based fuel solutions in our institutions, we require a concerted effort from the management of the various institutions, energy technology providers, end-users and government agencies. We encourage institutions and organizations to take this route and lead the way so that we can protect our environment. Equity will walk with you on this journey,” added Dr. Mwangi.

CCAK estimates that 1 million metric tonnes of wood-fuel is used by primary and secondary schools every year with a value of KES 10 billion. The increased over-reliance on wood and charcoal as the primary sources of fuel by institutions requires urgent attention for Kenya to reduce greenhouse gas emissions by 30% by the year 2030 under the Intended Nationally Determined Contribution (INDC).

Education Cabinet Secretary Prof. George Magoha, who presided over the launch, said, “Alliance High School has traditionally used wood for cooking, harvested from trees in its compound. With the installation of clean cooking infrastructure, the school can now reap the benefits of cleaner and environmentally friendly cooking solutions. This is a project that is transformative and in line with the Government’s agenda. When you look at the negative effects of climate change you will understand its importance. My call today is for all schools in Kenya to quickly follow suit and embrace clean energy solutions. This will contribute in reversing environmental degradation, save costs and improve health outcomes. If all schools switched to cleaner alternatives, we will not only preserve our trees but will also significantly reduce our carbon footprint.”

By transitioning to cleaner fuels like LPG, institutions can realize up to 40% savings in their cooking and lighting budget with better health and environmental outcomes, improved kitchen hygiene and motivation of workers.

“I am very grateful to Alliance High School, Equity and its technical partners for making it possible to have Alliance transition from a heavy consumer of wood fuel to modern and cleaner cooking technology that preserves the environment. The school’s kitchen will be used as a model for all institutions that want to adopt this technology,” added Prof. Magoha.

Equity is fully committed to working with all learning institutions in Kenya for them to realize the multiple benefits of modern and clean energy.

Last year, Equity committed to planting 35 million trees to contribute and rally the country towards the achievement of 10% forest cover. Out of the 35 million trees, Equity intends to plant 20 million in learning institutions. So far, Equity has planted 3.2 million trees, 2 million of which has been planted in 2,133 schools across the country. This is in support of the government initiative to achieve the 10% forest cover. Kenya Forest Service (KFS) and the Ministry of Environment & Forestry are supporting Equity through technical assistance on seedlings requirements for different geo-ecological zones, adoption of forest blocks that require rehabilitation and other logistical support.

Equity through the Foundation is promoting and driving conservation and smart use of natural resources by expanding forest cover, improving water security and promoting the use of renewable energy and energy-efficient technologies. So far 780,000 households and businesses have been supported to access clean energy products including solar panels for lighting and heating in homes, schools and hotels.

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Equity Group, the EIB and the EU chose to have the loan facility in Kenya Shillings to match the operating currency of SME businesses and eliminate the risk of foreign exchange while the EUR 20 million grant allows capacity building on the borrowing clients to derisk lowering the risk of default and hence allowing affordability by adoption of low-risk priced interest rates.

In response to the COVID-19 crisis, Equity launched an offensive and defensive approach to support customers to sustain themselves while innovating alongside MSMEs who are leveraging on the opportunities that have presented within the crisis. The Group committed to loan repayment accommodation for up to 45% of the customers whose cashflows and operation cycle were deemed likely to be negatively impacted during the COVID-19 pandemic. Equity made the prudent decision to ensure cashflow was not impaired and in its third quarter 2020 results, Equity reported a 30% growth in its loan book in support of its customers who saw opportunities of green shoots and diversifications in the COVID-19 environment. Most of the new opportunities funded were in manufacturing of PPE’s, logistics, online businesses, agro-processing, fast moving consumer goods and agriculture value chains.

In announcing the latest loan facility, Dr. James Mwangi, Managing Director and CEO of Equity Group Holdings Plc stated, “The impact of the COVID-19 pandemic started as a health crisis, which quickly became an economic and humanitarian crisis that has seen almost 40% of Kenyan small business owners negatively affected by the great economic mechanism of coping, managing, mitigating and containing COVID-19 during the shutdown in business. Equity’s goal is to keep the lights of the economy on by ensuring firms and businesses remain open, sustain employment and by keeping markets open for goods and services thus facilitating a quick recovery of businesses and the economy at large. This funding adds oxygen to the real economy through funding of enterprises under the `Young Africa Works’ Program where Equity, Mastercard Foundation and the Government of Kenya are working to create 5 million jobs for women and young people through entrepreneurship over the next five years.

The facility extends over the entire period of the program’s 5 years, ensuring the matching of long-term investment by SMEs to emerge stronger post the COVID-19 period.

The financing package through the EUR 20 Million grant covers amongst other initiatives, the provision of technical assistance to enhance Equity Bank’s capacity to assess, execute and monitor longer-term investment projects in the agriculture value chains and further develop its longer-term agricultural financing activities with a focus on youth and woman while enhancing their capacity to lower their credit risk and hence the interest rate at which they will obtain credit.

Speaking on behalf of the European Investment Bank, Vice President Thomas Ostros said, “New EIB and EU support for leading Kenyan partner Equity Bank will help entrepreneurs, business and agricultural small holders across Kenya to access finance and better withstand the economic challenges and business uncertainties caused by COVID-19. Today’s new agreements demonstrate Team Europe and Kenya joining forces to beat COVID-19 and help business flourish.”

The ability of Equity to attract funding from global agencies such as the European Investment Bank and the European Union speaks to Equity’s global standing, reputation and trust to support economic stability during the COVID-19 pandemic. Equity plays a central role in the global development agenda due to the interconnected nature of the economy and its ability to deliver strategic results due to its size and capacity. The facility also indicates the confidence that global lenders have in the Kenyan economy.

Equity not only wants to support export MSMEs but also those in the domestic economy and hence has borrowed in Kenya Shillings to ensure no mismatch in currency fluctuations which will further support the domestic market and protect it from exposure to the exchange rate. Both European institutions will support Equity’s lending to MSMEs, which acknowledges that the COVID-19 outbreak has been a shock to Kenya’s MSMEs. MSMEs eligible for Equity’s lending through the facility will be active in high-growth market sectors which serve to create new manufacturing or distribution activities in the economy as well as strengthen and develop eco-systems around existing industrial activities.

“As an inclusive regional financial institution these facilities strengthen Equity’s position to further enhance the strength of MSMEs who are key actors in value chains and ecosystems of the real economy in agriculture, trade, manufacturing, health and MSME sectors. By ensuring their survival and growth the MSMEs will continue to protect jobs, create more jobs and support lives and livelihoods in society, serving to create resilience as the pandemic subsides, as vaccines become available in Kenya, and as market growth returns,” said Dr. Mwangi. “We value our long-term partnership with the EIB and the European Commission who have walked with us and our customers on our path for sustained human development for many years including their investment to scale our focus in agriculture through Kilimo Biashara. We thank them for supporting our efforts to strengthen the role of MSMEs to stimulate the economy back to prosperity, and hence support lives and livelihoods through market growth.”

The guarantee complements Equity’s program with Mastercard Foundation, Young Africa Works, of creating 5 million jobs especially for youth by providing $4.2bn in funding to MSMEs coupled with capacity building in Financial Literacy, Entrepreneurship, Digital Literacy and business development services including mentorship, coaching and market linkages support. Equity is collaborating with MSME support organizations such as the Kenya National Chamber of Commerce and Industry (KNCCI), Kenya Association of Manufacturers (KAM), Kenya Private Sector Alliance (KEPSA) as well as Micro and Small Enterprises Authority (MSEA).

This is the third tranche for Equity Group after having signed a USD $50 Million facility with IFC in September and a USD $100 Million facility from Proparco in October bringing the total to USD $275 Million, USD $150 Million and EUR 125 Million – an equivalent of bringing Kshs 33 Billion to fortify credit flows and liquidity to MSMEs.

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