Equity Group and AGF launch Africa’s largest $500M credit guarantee to unlock MSME lending, boost jobs, and support women, youth, and green businesses.
NAIROBI, Kenya – May 9, 2025
In a historic initiative to unlock the power of entrepreneurship, Equity Group Holdings Plc and the African Guarantee Fund (AGF) have announced a $500 million credit guarantee facility targeting Micro, Small, and Medium Enterprises (MSMEs) across Kenya, Uganda, Tanzania, Rwanda, and the Democratic Republic of Congo.
Described as the largest such facility in AGF’s history, the agreement aims to address Africa’s MSME financing gap, empower underserved entrepreneurs, and catalyze inclusive job creation.
“We are not just providing loans—we are investing in livelihoods, jobs, and sustainable development,” said Dr. James Mwangi, Equity Group CEO.
💼 Financing Africa’s Growth Engine: The MSME Sector
MSMEs account for 90% of businesses and 80% of employment in Africa but face a funding shortfall of over $331 billion, according to the IFC. This new facility will initially inject $115 million into MSME financing across five countries, with a target to unlock $1 billion in new loans and support over 50,000 jobs in the next decade.
Related: How AGF Is Changing MSME Finance in Africa
AGF CEO Jules Ngankam called the partnership “a growth engine for African entrepreneurs.”
🌿 Targeting Women, Youth, and Green Businesses
Unlike traditional guarantees, this one prioritizes impact lending, focusing on:
- Women-led businesses
- Youth-driven startups
- Climate-smart agriculture
- Renewable energy and green innovation
This supports Equity’s ongoing work with the AfDB’s AFAWA initiative and its own Green Guarantee Facility.
“There is no sustainable development without women and green innovation at the center,” Mwangi emphasized during the Nairobi launch.
🌍 Supporting Digital, Green, and Blue Economies
The facility aligns with Africa’s Agenda 2063 and the UN SDGs, fueling ventures such as:
This supports Equity’s broader positioning as a regional leader in climate finance and inclusive lending.
📚 Training Banks to Speak Entrepreneur
AGF’s Capacity Development Initiative will upskill Equity Bank staff across the region in:
- Gender-smart product design
- MSME risk assessment
- Climate finance integration
According to AGF, such training can improve MSME loan approval rates by up to 30% within two years.
Related: Top 10 Women-Led Startups Thriving in Kenya
📈 Anchored in Equity’s Africa Recovery Plan
The guarantee forms a core pillar of Equity’s Africa Recovery and Resilience Plan (ARRP), launched in the wake of the COVID-19 pandemic. Since 2020, Equity has:
- Grown its balance sheet to KSh 1.7 trillion ($12.8B)
- Expanded to 8 African markets
- Provided financial services to 18+ million customers
Previous AGF collaborations have already unlocked $160 million in MSME loans, funding over 2,000 businesses, half of them led by youth or women.
🧭 A Scalable Blueprint for Africa’s Future
Equity and AGF’s $500 million partnership represents more than just capital—it’s a replicable development model for high-impact, low-risk financial inclusion across the continent.
“We’re not here to watch Africa rise,” Mwangi declared. “We are here to build it—with capital, conviction, and community.”
🔗 Related Reading
The Future of Green Finance in Sub-Saharan Africa
Equity Group’s Africa Recovery and Resilience Plan
How AGF Is Changing MSME Finance in Africa
