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Equity Group Holdings Plc and the African Guarantee Fund (AGF) have strengthened their collaboration through a USD 500 million (approximately Sh64 billion) financing arrangement aimed at scaling up support for Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.
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The enhanced agreement is projected to unlock up to USD 1 billion in financing for MSMEs, with a goal of creating or sustaining more than 50,000 jobs. Special emphasis will be placed on businesses led by women and youth, as well as environmentally sustainable ventures.
“This expanded partnership reflects our joint mission to empower MSMEs, the backbone of Africa’s economic engine,” said Equity Group CEO James Mwangi. “It supports our Africa Recovery and Resilience Plan by boosting high-impact sectors like agriculture and enterprises led by women and youth.”
Covering Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo, the deal marks AGF’s most significant guarantee initiative to date. An initial USD 115 million has already been allocated to these countries.
So far, the Equity-AGF partnership has facilitated over USD 160 million in credit to around 2,000 MSMEs, including 500 women-led and 900 youth-led businesses.
AGF Group CEO Jules Ngankam highlighted the facility’s potential to drive business growth and job creation.
“We expect to see measurable development outcomes such as employment growth and the progression of enterprises from small to medium scale,” he said.
The agreement also supports the African Development Bank’s AFAWA Guarantee for Growth initiative, which aims to unlock USD 3 billion for women-owned businesses. It further promotes green and blue economy financing and gender-focused capacity building.
This initiative aligns with the UN Sustainable Development Goals and the African Union’s Agenda 2063, underscoring both organizations’ dedication to inclusive and sustainable financial development.
