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(Ecofin Agency) – Equity Banque Commerciale du Congo has secured a loan of $50 million in local currency from the International Finance Corporation (IFC). The Congolese arm of Equity Group should use the money to better support to micro, small and medium-sized enterprises (MSMEs) active in the country.
“We want our MSMEs to grow at the global pace. By working with partners like IFC, we are building the capacity of our clients while creating economic opportunities that foster wealth creation for our people,” said James Mwangi, CEO of Equity Group Holdings.
The loan was pending approval since mid-June 2021. At the time, IFC was thinking of setting a maturity period of three years for the facility.
The IFC support will ensure the stability of Equity BCDC’s funding profile. With transactions denominated in Congolese francs, the beneficiary’s customers will not be subject to exchange rate fluctuations. Also, this local currency financing will enable Equity BCDC to comply with the regulatory requirement for all banks in the country to hold minimum reserves in local currency.
The availability of local currency financing in DRC is very limited due to the strong dominance of the US dollar.
Chamberline Moko
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