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Equity Bank Kenya, the flagship subsidiary of James Mwangi-led Equity Group, has secured a $60 million Trade Finance Transaction Guarantee from the African Development Bank Group (AfDB), strengthening the lender’s ability to support small and medium-sized enterprises (SMEs) and corporates engaged in cross-border trade.
The facility, marking a strategic boost to the bank’s trade finance capabilities, allows Equity Bank to fully guarantee trade-related payment obligations issued on behalf of its customers, reducing counterparty risk for confirming banks at a time when African businesses continue to face funding and risk-mitigation constraints, and improving confidence in Kenya’s import and export transactions.
Unlocking trade flows and SME growth
By lowering risk for correspondent banks, the AfDB-backed guarantee will help to ensure smoother settlement of trade transactions and expand Equity Bank’s capacity to issue trade finance instruments such as letters of credit, particularly for SMEs that often struggle to access affordable trade funding, even when customers face short-term liquidity pressures.
The funding also supports intra-African trade, directly aligning with the objectives of the African Continental Free Trade Area (AfCFTA), which aims to deepen regional integration and reduce dependence on extra-African supply chains. Lamin Drammeh, AfDB’s Trade Finance Division Manager, said the partnership reflects the bank’s commitment to strengthening Africa’s trade backbone by working with institutions that have deep local reach and operational scale.
For Equity Bank, the guarantee fits into a broader strategy to position itself as a leading trade finance partner for East African businesses. Managing Director Moses Nyabanda said the facility comes at a critical moment for Kenyan SMEs facing rising import costs, currency volatility, and limited access to risk-sharing instruments. “AfDB’s support enhances our ability to help businesses trade with confidence, manage risk, and sustain growth,” Nyabanda said.
Mwangi’s long-term vision
Under James Mwangi, Equity has deepened its footprint in Uganda, Tanzania, South Sudan, Rwanda, and the DRC. As the bank’s largest individual shareholder, with a 3.39 percent stake equivalent to 127.8 million shares, Mwangi has overseen its transformation into a Pan-African banking powerhouse.
The recent deal with AfDB aims to enhance support for small and medium-sized enterprises (SMEs) and companies involved in cross-border trade, highlighting AfDB’s plan to support strong African financial institutions that are large, profitable, and have a positive impact on development—while also strengthening Equity Bank’s role in funding trade across the continent.
