The International Finance Corporation (IFC), an arm of the World Bank Group, recently agreed to expand its Business Edge training program, which was launched in 2002, to South Sudan in an effort to aid small businesses within the country. The Business Edge training program is intended to help improve “business performance and competitiveness” by strengthening management skills in small and medium-sized enterprises (SMEs) located in developing nations.

The program was launched in South Sudan when IFC Vice President for Advisory Services Nena Stoiljkovic signed a cooperation agreement with the South Sudan affiliate of Equity Bank, a microfinance institution (MFI) based in Kenya, in an effort to improve financial literacy among its clients. The country, which achieved independence from Sudan in 2011, was chosen for the Business Edge rollout because it “has shown its commitment to improving the investment climate and building a strong private sector to drive economic growth and employment,” Ms. Stoiljkovic said. To date, IFC also has helped the government in South Sudan “establish a legal and regulatory framework for investment” and established partnerships intended to increase investments in the agriculture and health sectors.

Founded in 1984, Equity Bank is based in Nairobi, Kenya. It expanded operations into South Sudan and Uganda in 2008. As of 2011, it reports total assets of USD 2.1 billion, a gross loan portfolio of USD 1.3 billion outstanding from 630,000 active borrowers, deposits of USD 1.5 billion from 5.7 million depositors, return on assets (ROA) of 6.19 percent and return on equity (ROE) of 31.9 percent.

The International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

By Sarah Benali, Research Associate

About Equity Bank
Founded in 1984, Equity Bank is a microfinance bank based in Nairobi, Kenya, that provides loans, savings and fund transfer services. In 2008, the Equity Bank Group expanded into South Sudan and Uganda. As of 2011, Equity Bank reported to the US-based Microfinance Information Exchange (MIX), total assets of USD 2.1 billion, a gross loan portfolio of USD 1.3 billion outstanding from 630,000 active borrowers, deposits of USD 1.5 billion from 5.7 million depositors, return on assets (ROA) of 6.19 percent and return on equity (ROE) of 31.9 percent.

About International Finance Corporation (IFC)
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

Sources and Additional Resources

IFC Press Release: “IFC Vice President Stoiljkovic Announces Commitment to South Sudan’s SMEs, Economic Growth, “November 2012, http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/7827ECB4CAC5D17385257ACD00484927

MicroCapital.org story: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $5m to Lift Above Poverty Organization (LAPO) of Nigeria,” November 29, 2012, http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-lift-above-poverty-organization-lapo-of-nigeria/

MicroCapital.org story: “MICROCAPITAL BRIEF: CARE, Orange, Equity Bank Partnering to Bring Mobile Banking Services to Savings Groups in Kenya,” March 26, 2012, http://www.microcapital.org/microcapital-brief-care-orange-equity-bank-partnering-to-bring-mobile-banking-services-to-savings-groups-in-kenya/

MicroCapital Universe Profile: Equity Bank  http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equity+Bank

MicroCapital Universe Profile: International Finance Corporation (IFC) http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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