NAIROBI, Kenya- Equity Group and the World Food Programme (WFP) have forged a groundbreaking framework agreement designed to link value chain actors in food and agriculture to financial literacy training and concessional financing through Equity Bank subsidiaries.
This collaboration, inked by Equity Group Holdings MD and CEO Dr. James Mwangi and WFP Executive Director Cindy McCain, marks a significant stride in private sector engagement for development impact.
The agreement is an innovative model combining WFP’s deep field presence with Equity’s financial services, aiming to support marginalized communities where traditional financing is scarce.
Through the Equity Group Foundation, both organizations will provide comprehensive training to value chain actors, helping them access essential financing and technical assistance.
This support is crucial for agri-processors and agri-preneurs seeking impact investments through Equity Bank.
This partnership builds on the successful collaboration between WFP and Equity BCDC in the Democratic Republic of the Congo (DRC), where the “Promotion of Sustainable Food Security” project has been operational since 2022.
In the DRC, Equity BCDC has facilitated USD $10 million in loans to local value chain businesses, including smallholder farmers and food processors, who receive technical assistance and concessional financing.
Addressing the WFP Executive Board, Dr. Mwangi emphasized the critical role of the private sector in transitioning food crises towards resilient food systems globally.
This address marked the first time a CEO from the Global South was invited to speak at the WFP Executive Board.
Dr. Mwangi highlighted, “At Equity, we have always understood that small-scale farmers underpin the food supply in Africa and around the world. Our goal is to scale outputs and access to finance, facilitating investments in agricultural activities to support farmers, enhance productivity, and improve livelihoods.”
The partnership also aligns with Equity Group’s “Africa Recovery and Resilience Plan,” which aims to allocate 30pc of their loan book to farmers by 2030, addressing challenges such as climate change.
In addition to financial solutions, the partnership will focus on farmer education, emphasizing climate resilience, regenerative agriculture, and financial management.
Access to affordable and informative data is also a priority, enabling farmers to make informed decisions about their agricultural practices.
The collaboration will extend to infrastructure support, helping small-scale farmers mitigate food waste, obtain market access, and transport their goods efficiently.
