Equity Group Holdings Limited, formerly Equity Bank Group has reportedly set aside a total of 500 Billion for the financing of Kenyan and South African companies that are looking to either invest or trade in Africa. The move is been seen by observers as Equity Group’s strategy for the expansion of its business operations beyond the seven (7) countries where it is currently present.
Equity Group Holdings Limited will be offering said funds to companies that will be looking to create construction, investment, manufacturing and investment establishments. It will in addition, facilitate the adding of value via the processing, packaging, and of course financing of export or import businesses.
Of the 500 billion Kenyan Shillings being utilized by Equity Group Holdings Limited for the project around 100 billion Kenyan Shillings will be, provided by development institutions like the African Development Bank (AfDB). The rest will be from deposits made by its customers.
Observers believe that Equity Group has set its sights on South African companies in a bid to set up a presence in the market, without having to create any physical branches. Its presence will also create healthy competition for other commercial banks like Absa Bank and Standard Bank and Absa Bank.
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The Chief Executive Officer (CEO) of Equity Group; James Mwangi made it known that, “We have put into disposal of private sector and business community about Sh500 billion to facilitate trade. We will be funding Kenyan importers or South African firms that want to export 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 regions.”
Equity Group also led a four (4) day business networking meeting to spark the interest for investments and joint ventures between companies in the respective regions.
In recents times other Kenyan banks like DTB Bank, KCB Group, I&M Group and NCBA Group have commenced the expansion of their operations regionally through acquisitions as well as the creation of branches in countries which include The Democratic Republic of the Congo also known as DRC, Uganda, Malawi, Rwanda, South Sudan, Botswana and Tanzania effectively moving their healthy competition significantly beyond the Kenyan Borders.
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