Equity Group Seeks Exemption from DRC’s Shareholding Requirements
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Equity Group Holdings is seeking exemption from shareholding rules introduced by the Banque Centrale du Congo (BCC), which require banks operating in the Democratic Republic of Congo (DRC) to diversify ownership by the end of 2026.
The Nairobi Securities Exchange-listed lender has formally requested the DRC government to waive the regulation for listed companies, citing potential disruptions to its regional strategy.
The regulation, referred to as Instruction 18, mandates that all banks in the DRC must have at least four unrelated shareholders, each owning a minimum of 15 percent equity. Additionally, Congolese nationals must collectively hold no less than 45 percent of the bank.
Equity Group currently owns 85.4 percent of its DRC subsidiary, Equity Banque Commerciale du Congo (EquityBCDC), meaning it would need to divest at least 30 percent of its stake to meet the threshold.
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On May 27, 2025, Equity submitted a formal memorandum through the Association Congolaise des Banques (ACB) to the DRC parliament, arguing that listed banks such as itself and KCB Group should be exempted from the regulation.
The group described the absence of an exemption clause for listed entities as a regulatory oversight. KCB also faces similar pressure, as it holds an 85 percent stake in its DRC operation.
Equity entered the DRC in 2015 by acquiring an 86.6 percent stake in ProCredit Bank Congo, which it later renamed Equity Bank Congo. In 2020, the group expanded further after acquiring 66.53 percent of Banque Commerciale du Congo (BCDC) for USD 95 million from the George Arthur Forrest family.
The merged entity, EquityBCDC, has grown to become the second-largest bank in the country, with total assets of Sh656.5 billion, over 1.3 million accounts, and 74 branches as of 2024.
In 2023, Equity increased its stake in EquityBCDC to 85.4 percent after acquiring an additional 6.6 percent for Sh9.24 billion, valuing the bank at roughly Sh140 billion. The DRC unit generated an after-tax profit of Sh15.6 billion in 2024, making it a core part of Equity Group’s regional portfolio.
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The BCC’s ownership directive aims to increase local participation and reduce concentration risk in the DRC’s heavily dollarized banking sector. However, Equity has argued that enforcing the rule without flexibility could disrupt its operations in a key growth market of more than 112 million people.
If the exemption is not granted, Equity and KCB would be required to offload substantial equity, valued at approximately Sh42 billion in Equity’s case, within an 18-month window.
Such a transaction could attract interest from Congolese investors and institutions, but it may also introduce new shareholders with influence over governance and decisions.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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