Equity Group Holdings Plc and the African Guarantee Fund (AGF) have expanded their partnership with a USD 500 million (Sh64 billion) financing framework to accelerate support for Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.

The renewed agreement is expected to unlock up to $1 billion in MSME financing, targeting the creation or preservation of over 50,000 jobs, with a strong focus on women-led, youth-led, and green enterprises.

“This expanded partnership underscores our shared vision of empowering MSMEs, which are the backbone of African economies,” said Equity Group CEO James Mwangi.

“It aligns with our Africa Recovery and Resilience Plan to scale high-impact sectors such as agriculture and women- and youth-led enterprises.”

The partnership, AGF’s largest single guarantee engagement to date, covers Kenya, Uganda, Rwanda, Tanzania, and the DRC. An initial tranche of $115 million has already been committed to these markets.

To date, Equity and AGF’s collaboration has unlocked over $160 million in loans to nearly 2,000 MSMEs, including 500 women-led and 900 youth-led businesses.

AGF Group CEO Jules Ngankam noted the renewed facility would enable business expansion and job creation.

“We foresee development impact indicators such as increased employment and enterprise growth from small to medium scale,” he said.

The agreement also builds on the AFAWA Guarantee for Growth initiative by the African Development Bank, which seeks to unlock $3 billion in financing for women entrepreneurs.

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It will further support green and blue economy financing and capacity-building programs focused on gender-smart investing.

The initiative aligns with the UN Sustainable Development Goals and Africa’s Agenda 2063, reinforcing both institutions’ commitment to inclusive finance and sustainable development.