(Ecofin Agency) - Equity BCDC, a subsidiary of East African financial group Equity, has reached an agreement with Proparco for a $10 million guarantee. This is the second deal of the kind between the two parties, and it aims to boost access to financing for BCDC’s customers, with a focus on SMEs.

On July 5, 2023, the Congolese commercial bank Equity BCDC finalized a guarantee agreement with Proparco. It is a risk-sharing deal that will help Equity BCDC expand its financing options, particularly for small and medium-sized enterprises (SMEs), including those owned by women and youth.

The two partners had a first agreement signed in December 2021; that deal involved a portfolio guarantee aimed at assisting SMEs impacted by the Covid-19 pandemic.

In 2022, Equity BCDC’s customer base grew by 50% to 1.7 million (against 1.2 million in 2021). The same year, the bank's loan portfolio surged by 53%, contributing to a pre-tax profit of 8.1 billion Kenyan Shillings. 

In a country where only 6% of the population has access to formal banking solutions, Equity BCDC strives to expand financing access for businesswomen and rural people, by providing tailored solutions. 

Equity BCDC is the second-largest subsidiary of the Kenyan holding Equity Group. The latter owns 84.1 % of the Congolese bank. Besides DRC, Equity Group Holdings, Equity BCDC’s parent company, has subsidiaries in six East African countries and has plans to expand its presence to 15 African countries by 2025.

Chamberline Moko