
This transformative move builds on a longstanding partnership between the two institutions and aims to unlock up to $1 billion in lending for MSMEs in the region, with a projected impact of creating or sustaining more than 50,000 jobs.
Building on a robust collaboration established in 2018, which was later enhanced in 2020 with a $75 million facility, this renewed partnership represents the largest single guarantee engagement in AGF's history. It targets MSMEs in Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC), with plans to extend to future Equity Group subsidiaries over the next 10 years.
The framework will be implemented in three phases, starting with an initial USD 115 million tranche already committed to the five core subsidiaries. It will cover loans to MSMEs, with a focus on women-owned, youth-led, and green enterprises. To date, the AGFâ"Equity partnership has unlocked over $160 million in loans for nearly 2,000 MSMEs, including 500 women-led and 900 youth-led businesses.
'This expanded partnership with the African Guarantee Fund underscores our shared vision of empowering MSMEs, which are the backbone of African economies,' said Dr. James Mwangi, Managing Director and CEO of Equity Group. 'By enhancing access to finance and promoting sustainable business practices, we are investing in the future of our communities, preserving jobs and driving inclusive growth across the region.'
The initiative reflects a broader strategy by Equity Group to align its lending with high-impact sectors and support its Africa Recovery and Resilience Plan (ARRP), which emphasizes strategic partnerships and collaborative development. According to Dr. Mwangi, 'We see a unique opportunity to deepen our focus on high-impact SME sub-sectors, including agriculture, women- and youth-led enterprises, among others.'
AGF Group CEO Jules Ngankam also emphasized the depth of impact expected from the renewed partnership. 'By supporting the bank to accelerate SME financing, we envision several development impact indicators, including increasing the number of people employed and engaged in businesses and growth of enterprises from one stage to another, for instance, from Small to Medium enterprises,' he said.
Part of the initiative's strength lies in its alignment with the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program.
This program aims to unlock up to $3 billion for women-led businesses in Africa. Through the AGFâ"Equity partnership, women entrepreneurs will benefit from increased guarantee cover and receive technical support via the Equity Group Foundation, helping to close the persistent gender finance gap.
The partnership also places environmental sustainability at the core of its mission. Through AGF's Green Guarantee Facility and Equity's support for coastal and freshwater livelihoods, both organizations are championing green and blue economy activities that promote sustainable use of natural resources.
In addition to financial support, AGF will continue to build capacity within Equity Group through specialized training programs, focusing particularly on gender-smart investingâ"an area that is increasingly crucial for ensuring inclusive growth.
Equity Group, a Pan-African financial services powerhouse listed on several stock exchanges, has grown to serve over 21.6 million customers with an asset base of $13.96 billion. Its diversified portfolio spans banking, insurance, fintech, investment, telecom, and social impact. In 2024, it was named the second strongest financial brand in the world by Brand Finance.
AGF, backed by major development institutions including DANIDA, AfDB, AFD, and the Mastercard Foundation, has already unlocked more than $5 billion in SME financing through 250 financial institutions in 44 countries. Its model of risk-sharing and capacity-building has made it a cornerstone of SME development in Africa.


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