Equity Group launches Sh774 billion Africa recovery and resilience plan

 

Zainab Bangura, the UN Under-Secretary-General and Director-General of the United Nations Office in Nairobi, Equity Group Managing Director and CEO Dr James Mwangi and Wanjira Mathai, Managing Director of the Africa Division, World Resources Institute during the launch of Equity Group's 2023 Sustainability Report on Sept 3, 2024. [Wilberforce Okwiri, Standard] 

Tier one lender Equity Group Holdings has unveiled an ambitious $6 billion (Sh774 billion) initiative designed to tackle Africa’s systematic vulnerabilities that were exacerbated by the Covid-19 pandemic.

The Africa Recovery and Resilience Plan (ARRP) targets seen by The Standard seek to address issues such as job losses, business failures and weakened public health systems to ensure that African economies including Kenya can rebound more robustly and sustainably.

By focusing on both immediate relief and long-term recovery, ARRP The Standard seeks to empower key sectors such as agriculture, manufacturing and services to create jobs, stimulate economic growth, and improve the overall standard of living for millions of Africans.

“Through empowering agriculture, manufacturing, and service industries, the plan aims to create jobs, stimulate economic activity, and enhance the overall standard of living,” said a statement from Equity.

To achieve these goals, the mega plan has adopted a three-pronged approach to ensure a coordinated approach to recovery efforts across the continent.

It includes boosting productivity by enhancing the capabilities of raw material producers and integrating them into global supply chains to increase productivity across the continent.

On the other hand, the initiative has laid a plan to link primary and secondary sectors to global supply chains and capital markets, allowing African businesses to tap into international opportunities.

The ARRP also aims to create a more resilient economic framework that benefits all stakeholders through leveraging social and economic engines by strengthening value chains and providing holistic financial solutions to productive ecosystems.

The strategy will coalesce the marshal plan for Africa around six strategic pillars that include food and agriculture, extractives, manufacturing and logistics, trade and investment, micro, small and medium enterprises (MSMEs) as well as social and environment transformation.

Equity Group has engaged with leading African and global institutions, including United Nations agencies and various governments, to garner support and endorsements for the plan.

“These partnerships are critical for mobilizing resources, sharing best practices and ensuring a coordinated approach to recovery efforts across the continent,” added the statement.

The success of the ARRP hinges on collaborative efforts with a range of partners to ensure the continent’s continued social and economic development and ultimately realize Africa’s nascent opportunities.

As an African-grown and African-focused plan, Equity Bank Chief Executive Officer James Mwangi said the Group’s corporate strategy is to be a catalyst of wealth transformation for the continent.

“The plan ultimately aims to capacitate, finance and connect East African Community value chains to global supply chains,” he stated.

By the end of next year, ARRP plans to bring on board 100 million online businesses and consumers to enhance the economic and social inclusion of more productive households and financially enabled value chains.

The first phase of the plan will also have a multiplier effect of 5 million borrowing businesses and 25 million borrowing consumers.

Additionally, over 50 million: people will be employed directly and indirectly as value chains expand and deepen.

Dr Mwangi pointed out that the opportunity gives Africa a great chance to improve its position in the new world order.