Equity set to enter vast DRC market with acquisition of ProCredit Bank

Equity Group Holdings Limited has entered into an agreement to acquire majority shares in ProCredit, the leading bank in the SME sector in the DRC.

Dr. James Mwangi, Group Managing Director and CEO of Equity Group said the proposed acquisition of ProCredit, an SME focused bank in the DRC, provides Equity Group a great platform to further the Group’s growth objectives while extending its mission of financial inclusion across Africa.

“At EGHL, we are excited to announce the proposed acquisition of a majority stake in ProCredit which is one of the fastest growing banks in the DRC. This acquisition dovetails with our Equity 3.0 growth strategy as part of our commitment to deepen banking services and enhance financial inclusion in Africa,” said Dr Mwangi.

Equity Group intends to leverage on ProCredits’ strong business strategy, institutional capacity as well as its world-class risk management heritage to step up the bank’s growth in its existing core sector of SME banking in the DRC.

At the same time, the bank will launch an aggressive drive to develop the largely underserved retail market segment drawing on Equity Group’s experience in Agency and other technology led innovative banking services.

“We are excited about our entry into Sub Sahara Africa’s third most populous country through the investment in a fast growing, well established and highly regarded Bank. 

ROSY PROSPECTS

"We see enormous scope for development in the DRC and, together with the well trained and dedicated team of staff at Pro Credit Bank, we look forward to actualizing the great ambitions we share for the DRC market,” he added.

Philip Sigwart, Executive Chairman of ProCredit Bank Congo said Procredit is also poised to benefit from the ongoing regulatory driven reforms in the DRC market including government led efforts to extend financial inclusion by requiring all public sector workers.

“This is an exciting new development for ProCredit Bank and indeed for the banking sector as a whole in the Democratic Republic of Congo. Equity Group is one of the strongest banking groups in the region with exciting expansion plans.

"We look forward to drawing on Equity’s Group’s depth in experience and resources to scale up our operation into a top leadership position in the market in the near future,” said Mr Sigwart.

Procredit Bank is the 7th largest bank by assets in the market with total assets exceeding US$ 200million, net assets of US$ 25million and a customer base of over 170,000.

It was established in 2005 and has amongst its shareholders the German Development Bank KfW (“KfW”) and the International Finance Corporation (“IFC”) who currently hold 12% and 9% of the Bank’s issued share capital respectively. 

The Bank is well positioned for growth in the vast and resource rich country as the market scales up its banking penetration across the over 85 million population from current levels of under 4% towards the regions average banking penetration level of over 20%.

Completion of the acquisition is subject to regulatory approval in Kenya and the Democratic Republic of Congo.