NAIROBI, Kenya, May 10 –Equity Group and the International Finance Corporation (IFC) have signed a USD 165 million (Sh19 million) partnership that seeks to finance at least 5 million MSMEs and 25 million households, therefore, creating 50 million direct and indirect jobs.
Equity’s `Africa Recovery and Resilience Plan’ is in support of the sustainable development of Africa through supporting small businesses from all sectors of the economy including climate-smart businesses.
Through this equity investment, Equity Group commits to zero lending for coal-related projects such as the development or expansion of coal-fired power plants, coal mines, transportation assets used exclusively for coal, infrastructure assets exclusively dedicated to support coal mines and coal transportation, or any utility company that generates more than 20 percent of energy or revenues from coal, or have an annual coal production of 10 million tons or more; or have an installed coal-fired capacity of 5,000MW or more.
Further, Equity Group has agreed to allocate USD 80 million equity towards climate-related interventions covering all subsidiaries over the next 5 years.
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.
In addition, IFC has acquired a 6.71pc stake in Equity Group becoming the second-largest shareholder after Arise BV of Norway and Netherlands.
“ With IFC’s reach as the largest global development institution focused on the private sector equity, we will be able to further advance economic development by empowering and catalyzing the transformation of the lives and livelihoods of the African people and will enhance the success and sustainability of Equity’s ‘Africa Recovery and Resilience Plan’,” Equity Group Managing Director James Mwangi said.
