Equity Bank Joins Forces with Bpi France to Support SMEs in East Africa

Read Time:2 Minute, 7 Second

Equity Bank Limited has partnered with Bpi France, a French public investment bank, to enhance access to trade credit financing for Small and Medium Enterprises (SMEs) in East Africa.

Under the agreement, SMEs operating across the six countries where Equity Bank operates will have access to funding in both US dollars and Kenyan shillings.

Speaking during the announcement, Equity Bank Group CEO James Mwangi emphasized the importance of the partnership in creating new opportunities for businesses in the region.

“This agreement creates a bridge between us and France to facilitate trade between Europe and Africa. We aim to be catalysts and facilitators of trade, empowering SMEs to expand and transition into large enterprises and corporates.” Mwangi said.

Equity Bank is leveraging its presence in East and Central Africa to position itself as a regional financial hub for Bpi France and other partners. Mwangi noted that the bank’s understanding of local markets and legal frameworks allows it to offer a unique value proposition to international investors.

“Essentially, Equity is making Nairobi to become the regional financial hub. And maybe looking at the investment, the different countries require different investment. So how are you going to go about that? We are using the Equity presence in those countries,” added Mwangi.

“That is why we have restricted ourselves to East and Central Africa because Equity is already in those markets, it understands. So what it will do is to syndicate. We already understand the investment and the legal framework in each of the countries.”

Bpi France CEO Nicolas Dufourcq highlighted France’s commitment to boosting entrepreneurship and economic growth in Kenya and East Africa. He highlighted the contributions of French businesses in supporting local enterprises through capital infusion and technology transfer.

Read: Equity Bank Hits Ksh 1 Billion Mark in Pre-Tax Profits from Its Insurance Business in Q3 2024

Equity Bank has been shifting its focus from solely providing loans to regional SMEs and is now prioritizing partnerships to enhance and expand value chains for these businesses.

Over the years, Equity bank has received more than $2.4 billion (approximately Ksh 129.5 billion) in funding from 16 French development banks for onward lending.

However, this partnership with Bpi France goes beyond traditional credit facilities. The collaboration introduces syndicated loans in both local and foreign currencies, enabling the de-risking of investments for French companies looking to venture into African markets.

This approach is expected to attract more French enterprises to invest in the region, particularly in high-potential sectors like fintech, agriculture, and renewable energy.