Equity Bank funds struggling units as Uganda, DRC shine

Equity Group

President Uhuru Kenyatta (second left) unveils a plaque at BCDC’s Equity Centre in DRC alongside (left to right) Equity Group CEO James Mwangi, Central Bank of Congo Governor Deogratias Mutombo, Equity BCDC Managing Director Celestin Mukeba, and non-executive chairmen Prof Isaac Macharia and Nestor Ankiba. FILE PHOTO | COURTESY 

What you need to know:

  • The bank, which is listed on the Nairobi Securities Exchange, was targeting to hit a Ksh1 trillion ($9 billion) in asset base and 100 million customers by 2024 through a pan-African expansion programme.
  • In 2017, Equity shut down seven of its branches in South Sudan citing currency devaluation and persistent political instability.
  • Prior to its acquisition of the Congolese second largest bank by assets (BCDC) in a deal valued at $95 million last year, Equity Bank, had put an additional $42.81 million in Tanzania, Uganda and the DRC units.

East Africa’s largest lender by assets Equity Group Holdings (EGH) Ltd is fighting to keep its underperforming subsidiaries in Tanzania, South Sudan and Rwanda afloat through additional funding to strengthen its ‘vertical’ growth plan, mooted after abandoning further cross-border acquisitions last year.

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