Equity Bank Kenya, the flagship subsidiary of James Mwangi-led Fairness Group, has secured a $60 million Commerce Finance Transaction Assure from the African Growth Financial institution Group (AfDB), strengthening the lender’s means to assist small and medium-sized enterprises (SMEs) and corporates engaged in cross-border commerce.
The facility, marking a strategic enhance to the financial institution’s commerce finance capabilities, permits Fairness Financial institution to totally assure trade-related fee obligations issued on behalf of its prospects, decreasing counterparty threat for confirming banks at a time when African companies proceed to face funding and risk-mitigation constraints, and bettering confidence in Kenya’s import and export transactions.
Unlocking commerce flows and SME progress
By decreasing threat for correspondent banks, the AfDB-backed assure will assist to make sure smoother settlement of commerce transactions and broaden Fairness Financial institution’s capability to subject commerce finance devices resembling letters of credit score, notably for SMEs that usually battle to entry reasonably priced commerce funding, even when prospects face short-term liquidity pressures.
The funding additionally helps intra-African commerce, instantly aligning with the aims of the African Continental Free Commerce Space (AfCFTA), which goals to deepen regional integration and cut back dependence on extra-African provide chains. Lamin Drammeh, AfDB’s Commerce Finance Division Supervisor, mentioned the partnership displays the financial institution’s dedication to strengthening Africa’s commerce spine by working with establishments which have deep native attain and operational scale.
For Fairness Financial institution, the assure suits right into a broader technique to place itself as a number one commerce finance accomplice for East African companies. Managing Director Moses Nyabanda mentioned the ability comes at a vital second for Kenyan SMEs dealing with rising import prices, foreign money volatility, and restricted entry to risk-sharing devices. “AfDB’s assist enhances our means to assist companies commerce with confidence, handle threat, and maintain progress,” Nyabanda mentioned.
Mwangi’s long-term imaginative and prescient
Below James Mwangi, Fairness has deepened its footprint in Uganda, Tanzania, South Sudan, Rwanda, and the DRC. Because the financial institution’s largest particular person shareholder, with a 3.39 p.c stake equal to 127.8 million shares, Mwangi has overseen its transformation right into a Pan-African banking powerhouse.
The latest take care of AfDB goals to reinforce assist for small and medium-sized enterprises (SMEs) and corporations concerned in cross-border commerce, highlighting AfDB’s plan to assist robust African monetary establishments which can be massive, worthwhile, and have a constructive affect on growth—whereas additionally strengthening Fairness Financial institution’s position in funding commerce throughout the continent.
