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Supporting SMEs in the DRC
Project
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Signature date
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Location
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Democratic Republic of Congo
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Financing tool
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Financing amount (Euro)
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10000000
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Financing details
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Guarantee of USD 10,814,000
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Customer
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EQUITY BCDC
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Type of customer
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Financial institution
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Country of headquarters
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Democratic Republic of Congo
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Project number
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CCD1188
This project is carried out with the support of the European Union and Organization of African, Caribbean and Pacific States (OACPS).
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union and the ACP Group. This information is given at the time of signature, without prejudice to any developments in the operation/project.
With this EURIZ guarantee, Proparco and the European Union are supporting high-impact SMEs.
Client presentation
Equity BCDC was created in 2020 through the acquisition of BCDC (founded in 1909) by the Congolese subsidiary of Equity Group Holding Plc (EGH), a Kenyan banking group. EGH, which is one of the leading African regional banking groups, is present in 6 East African countries and aims to extend its presence to 15 countries by 2025. Its DNA is very close to Proparco’s strategic priorities, in particular in terms of financial inclusion and SME financing.
Project description
Proparco has allocated a EURIZ portfolio guarantee (PG – Fragile countries window) denominated in USD, with a maximum compensation ceiling of EUR 10m. This PG offers a 50% coverage of the final loss and targets an SME loan portfolio in a wide range of sectors.
The EURIZ program is implemented with resources from the European Union and the Organization of African, Caribbean and Pacific States (OACPS). It specifically aims to enable financial institutions to encourage the financing of SMEs operating in a high-impact sector.
Project impact
The project aims to strengthen financial inclusion and the development of SMEs in the DRC, a fragile country where the banking system is underdeveloped. SMEs play a major role in job creation and economic growth, as well as in increasing access to essential goods and services such as health, education and renewable energies which are specifically targeted by the project.