Equity eyes South Africa with Sh0.5tr business fund
Equity Group yesterday announced a Sh500 billion loans deal for Kenyan and South African business seeking to invest in the region.
In a move meant to promote trade and expand its business beyond the six countries where it operates, the lender also intends to use the deal to establish its presence in the market without having to set up physical branches.
“Equity will disburse up to Sh500 billion in loans to Kenya and South African business entities,” said Dr James Mwangi, CEO and Managing Director Equity Bank in a statement.
Mwangi said he will lead the deal for trade growth and investment in the two countries, coupled with the six countries in which it is present in Africa.
The 37-year old financial services provider said in a statement that the deal entails offering credit to companies that want to set up manufacturing, construction, health and investment firms, facilitate value addition through processing and packaging and finance export or import business.
“We have Sh500 billion available to private sector and business community to facilitate trade.
We will be funding Kenyan businesses and South African firms that want to venture into the regions we operate in or those that want to do partnership in the region.
We are inviting them as new investors in the region,” concluded Dr Mwangi.
This move could avoid raising competition with other commercial banks such as Absa Bank and Standard Bank which have an established pretense in the South African country.