March 30–Customers who pass the criteria will soon be able to apply for part of the EUR 19 million Equity Bank (Uganda) is receiving indirectly from the European Investment Bank (EIB) and earmarked for projects that target job creation and poverty reduction.
The EIB has signed a EUR 75 million credit line with the parent Equity Group based in Nairobi, Kenya. ‘With this facility, EUR 75 million, we will be in a position to support up to 1000 regional companies assisting to develop local entrepreneurs to compete at regional level furthering integration and cross border trade,” Equity Group Managing Director & CEO Dr James Mwangi said.
He said with the money Equity will be able to support an estimated 1000 companies around the region with about $10,000 each. EIB Vice President Pim van Ballekom, responsible for operations in East Africa, said, “The credit lines signed today will not only benefit people in Kenya, but are meant for people in neighbouring countries as well.”
The funds will go to three subsidiaries; EUR 36 million for Equity Tanzania, EUR 20 million for Procredit in the Democratic Republic of Congo and EUR 19 million for Equity Uganda.
The on-lending will be available in USD or local currencies with the objective of contributing to job creation and poverty reduction. In addition, Equity Group will benefit from a EUR 2 million technical assistance program funded by the EIB to support its strategy of transforming branches into SME business centres.