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Team Europe Partners with Equity Bank to Support Kenyan Business and Agriculture Amid COVID-19

Strategic Insights

— 2 min read

Team Europe, a collaborative effort between the European Union and the European Investment Bank, has partnered with Equity Bank to provide EUR 120 million (KES 15.8 billion) in new support to enhance financing for Kenyan companies severely impacted by the COVID-19 crisis. The financing package includes EUR 100 million in loans from the European Investment Bank to Equity Bank and EUR 20 million of European Union grant support. This support aims to provide access to finance at favorable conditions for Kenyan SMEs, particularly in the agriculture sector.

Key Takeaways:

  • The European Union and the European Investment Bank are providing EUR 120 million (KES 15.8 billion) in new support to Kenya to enhance financing for companies impacted by the COVID-19 crisis.
  • The financing package includes EUR 100 million in loans from the European Investment Bank to Equity Bank and EUR 20 million of European Union grant support.
  • The support aims to provide access to finance at favorable conditions for Kenyan SMEs, particularly in the agriculture sector.
  • New technical assistance, backed by the European Union, will further strengthen Equity Bank's capacity to assess, execute, and monitor longer-term agricultural value chains and provide long-term financing for agriculture.
  • Dr. James Mwangi, Group Managing Director and CEO of Equity Group Holdings Plc, stated that the partnership will help ensure the survival and growth of MSMEs, protecting jobs, creating more jobs, and supporting lives and livelihoods in society.
  • The partnership demonstrates Team Europe and Kenya joining forces to beat COVID-19 and help businesses flourish.
  • The EU and EIB support to Small and Medium Enterprises will directly support Kenyan entrepreneurs and farmers who need financing to cushion them from the effects of COVID-19.
  • Kenya's National Treasury observed a downturn growth rate from 6.1% to 2.5% in 2020, making it the worst year for the country in more than a decade.
  • Small and medium-sized enterprises (SMEs), which sustain the highest proportion of employment in the region, are the most vulnerable with limited access to external financing.
  • The Kenya - Team Europe COVID-19 Response Access to Finance and Kenya Agriculture Value Chain Facility initiatives were formally signed in Equity Bank HQ Nairobi at a COVID-19 compliant event.

Statistics:

  • EUR 120 million (KES 15.8 billion) in new support provided by Team Europe to enhance financing for Kenyan companies impacted by the COVID-19 crisis.
  • EUR 100 million in loans from the European Investment Bank to Equity Bank and EUR 20 million of European Union grant support.
  • 60% of employment and 65% of the exports in Kenya are attributed to the agriculture sector.
  • The EU and EIB support to Small and Medium Enterprises will directly support Kenyan entrepreneurs and farmers who need financing to cushion them from the effects of COVID-19.
  • Team Europe's total global response to COVID-19 stands at almost EUR 38.5 billion, combining resources from the EU, its Member States, the European Investment Bank, and the European Bank for Reconstruction and Development.
  • Around EUR 8 billion of this assistance is designated to African countries.

Sources:

  • M2 PressWire - "Team Europe partners with Equity Bank to support Kenyan business and agriculture amid COVID-19". M2 COMMUNICATIONS, March 3, 2021.
  • European Investment Bank (EIB). ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties.).

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