(Ecofin Agency) - The guarantee agreement is signed two years after IFC granted a US$50 million local currency financing to EquityBCDC. It aims to boost the bank's loans to SMEs.

Congolese bank Equity Banque Commerciale du Congo (EquityBCDC) announced, Monday (Feb 6), a US$12.5 million risk-sharing facility to support local small and medium-sized enterprises (SMEs).

Under that scheme, in addition to the financial contribution, IFC will also provide advisory services to strengthen EquityBCDC's risk management and SME segments.

"IFC's support will allow EquityBCDC to boost its support for smaller businesses in the country, contributing to economic growth and job creation," said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.

The partnership between the IFC and EquityBCDC is not the first of its kind. In November 2021, IFC granted a US$50 million local currency loan to EquityBCDC to support the growth of Congolese micro, small and medium-sized enterprises.

With the new support, EquityBCDC  "aims to provide an additional 1,700 SME loans within the DRC and expand its SME portfolio from $250 million in 2021 to $631 million by 2026." In May 2022, IFC acquired 6.7% of Equity Group Holdings, EquityBCDC's parent company.

Chamberline Moko