NCBA Group has announced a strategic partnership with Proparco, a leading French firm, to bolster Kenya’s small and medium enterprises (SMEs) with a substantial Sh6.75 billion funding injection. The collaboration, solidified with a handshake between NCBA Group MD John Gachora and Proparco’s Regional Head for East Africa, Audrey Maignan, signals a concerted effort to uplift women-led businesses and drive green financing initiatives.
Under the agreement, NCBA pledges 60 per cent of the funding towards SMEs, particularly those spearheaded by women, while the remaining 40 per cent will be channeled into green financing endeavors. This initiative resonates with NCBA’s overarching sustainability agenda, epitomized by the “Change The Story” platform.
During the signing ceremony held in Nairobi, John Gachora, NCBA Group MD, expressed gratitude to Proparco for their pivotal role in enabling NCBA to fulfill its sustainability commitments. Gachora emphasized the collaborative spirit and strategic partnerships as essential elements in delivering value to stakeholders, aligning with NCBA’s ethos of shared prosperity.
NCBA’s “Change the Story” platform, initiated in 2023, underscores the bank’s commitment to sustainable development, focusing on mobilizing funds for green and sustainable financing, increasing procurement spend on women and youth, and championing diversity and inclusion.
The allocated funds will be strategically deployed by NCBA, encompassing unsecured loans, procurement, and working capital, with a targeted approach towards women-led enterprises across key sectors such as manufacturing, agriculture, and services.
Audrey Maignan, Proparco’s Regional Head for East Africa, highlighted the firm’s dedication to partnering with the banking sector to address environmental and social challenges on a global scale.
French Ambassador to Kenya, Arnoud Suquet, reaffirmed France’s support for Kenyan SMEs, citing significant investments totaling $1 billion to date through the Choose Africa initiative.
In addition to the Proparco deal, NCBA unveiled an ambitious investment plan to expand its footprint in Kenya, with a focus on enhancing support for SMEs and corporate clients, while advancing financial inclusion objectives.
Through this transformative partnership, NCBA Group aims to catalyze sectoral investments in agriculture and manufacturing, while actively participating in initiatives promoting women in entrepreneurship and SMEs, such as the 2X Challenge.
NCBA’s collaboration with Proparco underscores the importance of strategic partnerships in driving sustainable development and fostering economic resilience within the SME ecosystem.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
2nd May, 2024
