MICROCAPITAL BRIEF: European Investment Bank (EIB) Provides Credit Lines Totaling $101m for Equity Bank, HFC to Support Microfinance in DRC, Kenya, Tanzania, Uganda

The EU’s European Investment Bank (EIB) recently announced it has opened two new credit lines to support small-scale enterprises in the Democratic Republic of Congo, Kenya, Tanzania and Uganda. The larger credit line is in the amount of EUR 75 million (USD 80 million) in the name of Equity Bank, a Kenya-based microfinance bank, to be distributed through its affiliates Equity Bank Tanzania, Equity Bank Uganda and ProCredit Bank Congo, the last of which operates in the Democratic Republic of the Congo. The second credit line, which is in the amount of EUR 20 million (USD 21.5 million), is being issued to HFC Limited, a subsidiary of Kenya-based HF Group, which is regulated by the Central Bank of Kenya and reported total assets of KSH 69 billion (USD 666 million) as of 2016.

Equity Bank, founded in 1984, is a microfinance bank based in Nairobi that provides loans, savings and fund transfer services. Equity Bank currently has 14 subsidiaries in the Democratic Republic of Congo, Kenya, Rwanda, South Sudan and Tanzania. As of December 2016, Equity Bank Group reported KES 473.7 billion (USD 4.58 billion) in total assets and a loan portfolio of KES 266 billion (USD 2.57 billion).

Created in 1958, the European Investment Bank (EIB) serves as the long-term lending bank of the European Union (EU). In addition to supporting projects in EU member states, its priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” As of December 2015, EIB reported total assets of EUR 571 billion (USD 637 billion) and a loan portfolio of EUR 504 million (USD 562 million).

By Phoebe Rorke, Research Associate

Sources and Additional Resources

Asoko Insight:
East African entrepreneurs to benefit from European Investment Bank $101 million credit

HFC Group:
HFC Group

HFC Group 2016 Financial Statement

Equity Bank:
Equity Bank Group

Equity Bank Group Financial Statements

MicroCapital:
Equity Bank, Igenico, Tracom Enable Cashless Transfer Doorstep Money for Government Payments in Kenya

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