James Mwangi-led Equity Group seals $495 million deal for MSME

Key Points

• Equity Group secures $495 million guarantee from AGF to unlock $1 billion in MSME lending across five African countries. 
• Deal expected to support 50,000 jobs and expand financial access for women and youth-led businesses. 
• James Mwangi’s bank pushes green, inclusive finance while targeting expansion in Tanzania and Uganda.

Equity Group, East Africa’s largest lender led by Kenyan banker James Mwangi, has secured a game-changing partnership with the African Guarantee Fund (AGF). The move, which includes a Ksh64 billion ($495 million) guarantee from AGF, is set to revolutionize financial access for Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.

Partnership aims to unlock $1 billion in MSME financing 

This partnership, touted as the largest single guarantee agreement in AGF’s history, will provide crucial support to MSMEs in Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC) with plans to reach future Equity Group subsidiaries over the next decade. By leveraging this facility, Equity Group aims to generate Ksh129.5 billion ($1 billion) in lending, supporting over 50,000 jobs, with a focus on empowering women and youth entrepreneurs. 

“This expansion of our collaboration with AGF reflects our unwavering commitment to MSME growth, a cornerstone of Africa’s economic stability,” said James Mwangi, Equity Group’s Managing Director and CEO. “Our initiative is designed not just to increase access to finance but also to foster job creation and sustainable development in the region.”

Sustainable growth and economic resilience in Africa

The deal’s rollout will occur in three phases, starting with a $115 million (Ksh 15 billion) tranche dedicated to five of Equity’s key subsidiaries.

The partnership builds on a successful history of collaboration, dating back to 2018, and was further solidified in 2020 with a $75 million (Ksh9.7 billion) facility. This prior engagement enabled over $160 million in loans to nearly 2,000 MSMEs, including businesses led by women and youth. 

Jules Ngankam, CEO of AGF, emphasized the broader impact, saying, “Through our enhanced partnership, we anticipate accelerated business growth, greater job creation, and heightened economic resilience throughout the region.”

Championing green and inclusive financing solutions

Both Equity Group and AGF are also leading efforts to finance green and blue economy projects. Through the AGF Green Guarantee Facility and Equity’s innovative financing solutions, the collaboration aims to support sustainable businesses, particularly those focused on coastal and freshwater livelihoods. 

Under Mwangi’s leadership, Equity has expanded its operations across multiple African markets, including Uganda, Tanzania, South Sudan, Rwanda, and DRC. His strategic vision has solidified Equity as a Pan-African banking leader.

Recently, the bank reported a 12 percent rise in net profit, reaching Ksh48.82 billion ($377.3 million) in 2024, driven by robust revenue growth and efficient cost management. In an effort to support further regional expansion, Equity plans a $30.4 million investment in Tanzania and Uganda, reinforcing its commitment to financial stability and shareholder value.