Equity Group is set to start lending to European Small and Medium Enterprises (SMEs), following the launch of the German desk for East Africa by the lender.
Equity announced the move in collaboration with Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) -a German Development Finance Institution, noting that the German Desk was part of Equity Group’s efforts to reach out to a broader range of European SMEs and entities.
The desk is expected to offer relationship management and financial services to the European SMEs and their local partners in the region, including account opening, trade facilitation and finance, transaction banking, credit lines, introductions, and investment through financing.
Equity Group Chief Executive Officer James Mwangi, said the lender was positioning the German Desk as a key component of its broader strategy, to connect local businesses with European markets, by having the latter expand more into East Africa.
“The German Desk will provide a platform for German and the broader European private sector to access the vibrant East African market, while also supporting local businesses in their growth and development, in line with the Africa Recovery and Resilience Plan,” Mr Mwangi said.
The lender considers the newly launched services as having the potential to ease and empower business linkages, support trade engagement and enable local companies to acquire German equipment and technology platforms.
Senior Director of Infrastructure, Energy, and German Business at DEG, Petra Kotte, noted that supporting German businesses in Africa was the institution’s long-term strategic focus that would strengthen economic ties between Germany and East Africa.
“By providing tailored financial solutions and fostering cross-border partnerships, we are empowering businesses to seize opportunities in this dynamic market,” Ms Kotte said.
Germany is one of Kenya's major trading partners in Europe, with leading trading items between the two countries including automotive, machinery, and chemicals.
“This initiative will not only benefit German businesses but also contribute to the socio-economic development of Kenya and the wider East African region,” noted Sebastian Groth, the German Ambassador to Kenya.