After receiving approval from regulators in Kenya and Democratic Republic of the Congo (DRC), Equity Group, a Kenya-based commercial bank, recently acquired 79 percent of the shares of ProCredit Bank Congo, which is located in DRC and focuses on serving small and medium-sized enterprises. The price of the acquisition has not been disclosed.
James Mwangi, the CEO of Equity Group, was quoted stating that “the acquisition provides Equity Group with a great platform to further the group’s growth objectives while extending its mission of financial inclusion across Africa.” Previous to this acquisition, Equity Group was already operating in Kenya, Rwanda, Uganda, South Sudan and Tanzania.
Before the transaction, ProCredit Bank Congo was one of 21 banks held by Germany’s ProCredit Holding. These subsidiary banks, which focus on serving small and medium-sized enterprises and low- and middle-income savers in developing countries, hold aggregate assets of EUR 5.97 billion (USD 6.44 billion) as of December 2014.
German development bank KfW, formerly known as Kreditanstalt für Wiederaufbau Entwicklungsbank, and the World Bank Group’s International Finance Corporation (IFC) hold 12 percent and 9 percent, respectively, of shares of ProCredit Bank Congo. As of December 2013, ProCredit Bank Congo reported total assets of CDF 189 billion (USD 200 million). As of September 2015, Equity Group reported total assets of KSH 446 billion (USD 4.36 billion), customer deposits of KSH 317 billion (USD 3.10 billion), a loan portfolio of KSH 263 billion (USD 2.57 billion).
By Caroline Zhu, Research Associate
About ProCredit Bank Congo
Founded in August 2004, ProCredit Bank Congo is a financial institution in the Democratic Republic of Congo focusing small and medium-sized enterprises. It was part of the Germany-based ProCredit Group until 2015 when 79 percent of its shares where acquired by Kenya-based Equity Group. As of December 2013, ProCredit Bank Congo reported total assets of CDF 189 billion (USD 200 million).
About Equity Group Holdings
Founded as Equity Building Society in October 1984, Equity Bank Holding is Kenya-based commercial bank with subsidiaries in the Democratic Republic of the Congo, Kenya, Rwanda, Uganda, South Sudan and Tanzania. As of September 2015, Equity Group reported total assets of KSH 446 billion (USD 4.36 billion), a customer deposit of KSH 317 billion (USD 3.10 billion), a loan portfolio of KSH 263 billion (USD 2.57 billion).
About ProCredit Holding
Germany’s ProCredit Holding consists of 21 banks operating in developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have previously had limited access to formal financial services. As of December 2014, ProCredit reported total assets of EUR 5.97 billion (USD 6.44 billion), a gross loan portfolio of EUR 4.33 billion (USD 4.67 billion), customer deposits of EUR 3.99 billion (USD 4.31 billion) and return on equity (ROE) of 9.4 percent.
Sources and Additional Resources:
[1] Standard Digital news, “Equity completes acquisition of DRC-based ProCredit Bank”, http://www.standardmedia.co.ke/business/article/2000176678/equity-completes-acquisition-of-drc-based-procredit-bank
MicroCapital Universe Profile: ProCredit Bank Congo
MicroCapital Universe Profile: Equity Group Holdings
MicroCapital Universe Profile: ProCredit Holding
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