International Finance Corporation(IFC), the private lending arm of the World Bank, has partnered with Equity Banque Commerciale du Congo (Equity BCDC), a subsidiary of Equity Group, to assist micro, small and medium enterprises (MSMEs) in the Democratic Republic of the Congo (DRC), access local currency financing.
IFC loan equivalent to US$ 50 Million
The Corporation’s loan to Equity BCDC, of up to the equivalent of US$50 million in Congolese francs, will help the bank provide additional local currency loans to underserved MSMEs in the DRC, many of which have suffered cash-flow disruptions because of the COVID19 pandemic.
Providing loans in local Congolese francs will help borrowing companies in the country avoid currency fluctuations.
“Our strong relationship with IFC has today taken a new step as we commit to supporting MSMEs in the DRC together. The DRC is a vast, dynamic country that is on its way to becoming a dynamic economy with tremendous opportunities for small businesses to underpin growth,” said Dr James Mwangi MD and Chief Executive Officer of Equity Group Holdings Plc.
“We want to see continued progress for our MSMEs as the world opens up. By working together with partners such as IFC, we are offering our clients a way to empower themselves while creating economic opportunities for wealth creation for our people,” said Dr Mwangi.
“Helping smaller businesses access financing-especially local currency financing-is one of the best ways to help them grow and create jobs and is a central part of IFC’s strategy to support development in Africa,” said Sérgio Pimenta, IFC’s Vice President for Africa.
IFC investment in Equity BCDC will help smaller businesses in the DRC access the financing they need and reinforce its longstanding partnership with Equity Group.
IFC’s investment is supported by the International Development Association’s (IDA) Private Sector Window (PSW) Blended Finance Facility and Local Currency Facility, through guarantees and cross-currency swaps aimed at helping financial service providers serving the base of the pyramid segment.
Equity BCDC, the second-largest private sector bank with a strategic focus on serving MSMEs in the DRC, is part of Equity Group Holdings Limited (EGHL), the biggest bank by asset base in East and Central Africa.
In the 2021 fiscal year, the corporation’s commitment to SME Finance Portfolio was over $ 12.3 Billion worldwide. Of this amount, the Africa portfolio was $2.6 billion.
IFC’s strategic priorities in the DRC focus on energy, ICT, housing, access to finance for MSMEs, and supporting improvements to the business enabling environment.
