Equity Bank has partnered with BpiFrance to enhance trade financing for Small and Medium Enterprises (SMEs) in East Africa.
The deal was announced during French Week 2024, organized by the French Chamber of Commerce and the French Embassy in Kenya. It provides SMEs with financing in US dollars and Kenya shillings to scale operations in six countries where Equity operates.
Dr. James Mwangi, Equity Group Managing Director, called the agreement a key step in supporting SMEs and fostering regional trade links.
“This agreement creates a bridge between Equity and France to facilitate trade between Europe and Africa,” said Dr. Mwangi.
He added, “Empowering SMEs to expand and transition into large enterprises and corporates is part of our shared vision.”
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A Gateway to Europe
BpiFrance CEO Nicolas Dufourcq emphasized Africa’s potential as a future economic powerhouse and highlighted the importance of Franco-African trade.
“We aim to act as a Franco-African trade bridge, facilitating the flow of capital, technology, and entrepreneurship between Europe and Africa,” said Dufourcq.
Kenya’s recent Economic Partnership Agreement (EPA) with the European Union offers duty-free access to 27 EU countries, including France. This partnership is expected to boost Kenyan exports to Europe, create jobs, and foster economic growth.
Equity will also help de-risk investments for French companies in Africa by offering syndicated loans in local and foreign currencies.
Supporting Local Growth
Dr. Mwangi expressed optimism about the partnership’s potential to attract European investments and strengthen ties with French-speaking regions.
“We want European companies to invest in Africa, bringing their technology, capital, and entrepreneurship to foster local manufacturing,” said Dr. Mwangi.
Equity’s Africa Recovery and Resilience Plan (ARRP) aligns with this collaboration, which complements the bank’s recently launched German Desk initiative.
“The partnerships with BpiFrance and the German Desk demonstrate Equity’s commitment to positioning Africa as an investment destination,” added Dr. Mwangi.
Equity’s efforts aim to connect international markets with local opportunities, transforming lives and businesses across East and Central Africa.