International Finance Corporation (IFC), which is a member of the World Bank Group has announced a Sh5.4billion loan to Equity Bank Kenya to assist small and medium enterprises that are facing Covid-19 challenges.
The new loan will allow Equity Bank to maintain lending to the risky small traders and firms, who have been hard hit by the economic effects of the pandemic. It will ultimately support hundreds of Kenyan businesses in the manufacturing, health, trade, transport, and consumer goods sectors. The credit is in line with IFC’s global $8b fast-track Covid-19 facility, which is designed to help businesses maintain operations and jobs during—and after— the crisis.
According to Dr James Mwangi, Equity Group CEO, IFC’s loan, which is part of our business continuity management plan, will help Equity Bank extend much-needed support to their clients, particularly to SMEs in sectors hit hard by Covid-19.
“We have purposed to support and walk with them so that they can survive during this crisis, recover, and thrive after it. I call on customers looking to seize emerging opportunities in the health and medical sector to manufacture personal protective equipment (PPE) or support the logistics of the entire ecosystems and value chain to take advantage of the $50 million facility,” he said.
On the other hand, Manuel Moses, IFC country manager for Kenya, said, “IFC’s longstanding partnership with Equity Bank underscores our commitment to Kenya’s financial sector and wider economy, especially during these difficult economic times. Keeping businesses solvent and protecting jobs are essential parts of IFC’s response to the unprecedented challenges of COVID-19.”
The pandemic has disrupted trade and value chains in Kenya, across Africa, and around the world, affecting commodity prices, reducing foreign financing flows, and collapsing tourism revenues. There is a need to assist SMEs as they are the lifeblood of Kenya’s economy as they not only offer opportunities to most Kenyans, but also help many to better their lives.
