Equity Bank has taken a significant step toward supporting the growth of Small and Medium Enterprises (SMEs) in Kenya and the broader East African region by signing a trade credit financing deal with BPI France, a prominent French investment bank. This partnership aims to offer funding in both US dollars and Kenya shillings, giving local and regional investors the financial support they need to expand their businesses across six countries where Equity Bank operates.
The agreement is poised to play a key role in addressing the financing gap that has often hindered the growth potential of SMEs in East Africa. Equity Bank Group CEO, James Mwangi, emphasized the transformative power of this partnership, noting that it will not only facilitate trade between Africa and Europe but will also serve as a bridge to enhance economic ties between Kenya and France. By empowering SMEs to grow into larger enterprises, Equity Bank aims to be a catalyst for greater trade and economic development in the region.
BPI France CEO, Nicolas Dufourcq, underscored the significance of France’s growing investment in Kenya, particularly in the sectors of fintech, agriculture, and renewable energy. He highlighted the role of French businesses in contributing to local entrepreneurship by providing capital and transferring technology, which will help drive the growth and competitiveness of Kenyan SMEs in the global marketplace.
This partnership comes at a pivotal time for Kenya, as the country has recently implemented the Economic Partnership Agreement (EPA) with the European Union. The EPA allows Kenyan exporters to enjoy duty-free access to 27 EU nations, including key markets like France, Germany, and Italy. This trade agreement offers immense opportunities for Kenyan businesses to tap into the trillion-dollar EU market, expanding their reach and increasing their export potential.
The trade credit financing deal between Equity Bank and BPI France is a major step in unlocking new economic opportunities for Kenyan SMEs. By facilitating access to funding, the partnership aims to foster job creation, economic growth, and a more robust trade ecosystem within Kenya and across the East African region.
As the partnership unfolds, it is expected to have a lasting impact on Kenya’s business landscape, providing SMEs with the resources and support they need to grow, scale, and compete internationally. The collaboration between Equity Bank and BPI France is a prime example of how strategic partnerships can pave the way for a more inclusive and sustainable economic future.
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