Equity to inject Sh12bn in its DRC subsidiary
Equity Group Managing Director and CEO Dr James Mwangi.
What you need to know:
- Equity Group said the amount will be invested in segments.
- Lender has pointed to the strategic importance of its DRC’s subsidiary to its future growth.
Equity Group has announced a Sh11.5 billion ($100 million) capital injection into its Democratic Republic of Congo subsidiary BCDC to support multiple sectors of the economy.
The lender said the amount will be invested in segments such as agriculture, education, health, hospitality, food industry, mining, environment, SMEs, housing, energy and infrastructure among others.
The announcement comes after DRC was admitted as the seventh member of the regional bloc on March 29 during a virtual 19th Extraordinary Summit of East Africa Community (EAC) Heads of State chaired by President Kenyatta.
“Key (target sectors include) agriculture, education, health, hospitality, food industry, mining, environment, SMEs, housing, energy and infrastructure to support the DRC government as part of its efforts to ensure access of funds for investment,” said Equity Group chief executive James Mwangi.
Equity through its Kenyan and DRC arms is looking to fund businesses that are seeking opportunities in four DRC cities— Kinshasa, Lubumbashi, Goma, and Mbuji Mayi.
It has pointed to the strategic importance of its DRC’s subsidiary to its future growth.
DRC’s entry into the EAC bloc came at a time when a growing list of Kenyan companies are looking for investment opportunities in the DRC.
“We have gained enough experience in the six markets we operate in and the region to support businesses that are looking to venture into DRC and the larger East and Central Africa,” said Mr Mwangi earlier.
Equity first entered into the DRC in September 2015 after acquiring a 79 percent stake in ProCredit Bank in a Sh4.5 billion share swap deal that saw it issue 70.8 million shares.
