NAIROBI, Kenya, May 10 – The International Finance Corporation (IFC) and the IFC Financial Institutions Growth Fund has acquired a 6.71pc stake in Equity Group becoming the second-largest shareholder after Arise BV of Norway and Netherlands.
Arise is a leading African investment company that partners with sustainable, locally-owned Financial Services Providers (FSPs) in Sub-Saharan Africa.
The acquisition was revealed during a partnership agreement which will see the latter inject Shs19 billion towards Equity’s program that seeks to finance at least 5 million MSMEs and 25 million households, therefore, creating 50 million direct and indirect jobs.
Equity Group Managing Director James Mwangi says IFC’s addition will further advance economic development by empowering and catalyzing the transformation of the lives and livelihoods of the African people.
“As Equity Group, we are delighted to welcome IFC, a member of the World Bank Group to the Equity family as our second-largest shareholder. With IFC’s reach as the largest global development institution focused on the private sector equity,” he said.
The credit facility of USD 165 million includes USD 50 million from IFC, USD 50 million from British International Investment (BII), USD 65 million from Symbiotic, Responsibility and FMO, the Dutch entrepreneurial development bank, and a long-time shareholder in Equity through Arise Investments.
Equity’s Africa Recovery and Resilience Plan is in support of the sustainable development of Africa through supporting micro, small, and medium-sized businesses (MSMEs) from all sectors of the economy including climate-smart businesses.
IFC Vice President, Risk, and Finance, Mohamed Gouled said IFC’s deepening partnership with Equity Group reflects that strategy and will support economic growth in Africa as the continent recovers from the effects of the COVID-19 pandemic.”
“Supporting small businesses, digital financial services, and climate-friendly projects is central to IFC’s strategy in Africa to help create jobs, respond to climate change, and leverage the opportunities afforded by the digital economy,” he said.
The investment is IFC’s first in Africa that aligns with the corporation’s approach to increasing green equity investments in financial institutions.
Speaking on behalf of British International Investment (BII) Head of Financial Services and Africa Coverage, Stephen Priestley said the funding will further increase working capital to more local businesses and help to fund climate eligible projects in Kenya.”
