In a major boost for Africa’s entrepreneurial landscape, Equity Group Holdings Plc and the African Guarantee Fund (AGF) have signed a groundbreaking KSh64 billion ($500 million) deal to turbocharge lending to Micro, Small, and Medium Enterprises (MSMEs) across East and Central Africa.

The expanded financing partnership, the largest in AGF’s history, is set to unlock up to $1 billion in funding, positioning MSMEs at the heart of the continent’s economic resilience and growth. It is expected to drive job creation, enterprise expansion, and climate-smart innovation, especially among youth- and women-led ventures.

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

Spanning Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo, the agreement has already delivered an initial $115 million tranche to catalyze MSME lending in these markets.

Since the Equity-AGF partnership began, more than $160 million in loans have been extended to nearly 2,000 MSMEs, including 500 women-led and 900 youth-led businesses. With the new facility, that reach is expected to grow exponentially.

AGF Group CEO Jules Ngankam emphasized the deal’s development potential: “This facility will drive MSME growth from survival to scale. We expect to see tangible impact through job creation, business resilience, and a shift toward greener, more inclusive economies.”

The deal also builds on the African Development Bank’s AFAWA Guarantee for Growth initiative, which aims to unlock $3 billion for women entrepreneurs. It integrates climate-friendly financing and capacity-building for gender-smart investment, aligning with both the UN Sustainable Development Goals and Africa’s Agenda 2063.

By focusing on green, blue, and inclusive finance, this strategic alliance signals a new era for MSMEs across Africa one where small businesses are not only supported but empowered to lead the continent’s sustainable development journey.