This archive report was first published on 18 August 2020.
Equity Group Holdings has made significant strides in the Democratic Republic of Congo, investing over 20% of its assets in the country. This move has raised eyebrows, given the DRC's reputation for political instability. However, the Group's CEO, James Mwangi, is confident in the country's potential for growth.
Speaking to Nyakundi Report, Mwangi highlighted the DRC's trajectory towards stability as a key factor in the Group's decision to invest heavily in the country. He noted that the country has made significant progress in recent years, including the smooth transition of power from President Kabila to President Tshisekedi.
According to Mwangi, the DRC's development of infrastructure over the past decade is a testament to the country's commitment to long-term growth. He cited the development of road infrastructure and plans to develop the Inga dam as examples of the country's progress.
Equity Group Holdings has partnered with the International Finance Corporation (IFC) to enter the Congolese market. The IFC is already a shareholder in Equity Bank Congo (EBC) S.A., and the two entities have collaborated on several projects in the DRC.
Mwangi emphasized the importance of having a strong partner like the IFC, which can bring trust, brand reputation, and access to global resources and capabilities. He noted that the partnership will enable the Group to replicate its successful model in the DRC market.
When asked about the Group's plans for the Congolese subsidiaries, Mwangi stated that the banks are well-capitalized and do not require additional capital. However, he noted that the Group may consider injecting Tier 2 capital to strengthen the banks' capital positions.
On the country's political environment, Mwangi expressed his confidence in the DRC's ability to transition towards a more stable and democratic government. He noted that the country has made significant progress in recent years, including the smooth transfer of power and the implementation of anti-corruption reforms.
