NCBA Group and Proparco have join forces to facilitate green financing and women economic empowerment in Kenya in line with their Sustainability Commitments.
NCBA Group signed a US$ 50 million facility with Proparco, a subsidiary of the AFD Group focused on private sector development. The funding will go towards delivering NCBA`s “Change The Story” sustainability agenda.
“We are grateful to Proparco for coming on board and enabling us to meet our Sustainability commitments. As NCBA, collaborative efforts and strategic partnerships are integral to the value that we deliver to all our stakeholders. I believe that with this partnership, we will deepen our shared goals to fostering sustainable economic development and advancing the cause of green finance, women empowerment, and SME growth” said John Gachora, the Group Managing Director, NCBA.
NCBA has a long-standing relationship with AFD Group and continues to evolve its commitment to sustainability. In 2023, the group launched its Change The Story platform anchored on five strategic pillars and a set of fifteen bold commitments. Among these commitments relevant in the partnership includes mobilizing Ksh30 billion of Green & Sustainable Financing, steering at least 30 percent of the general services procurement spend to women and youth plus promote diversity, equity, and inclusion.
Emmanuel Haye, Head of Financial Institutions Africa at Proparco noted that NCBA Group endorses the same goals and values as Proparco. “The positive role they play to tackle climate change through green projects, as well as social inequalities, resonates with our 2023-2027 Strategy. We are certain that this collaboration will enhance financial inclusion in Kenya, especially for women entrepreneurs, as the project has qualified for the 2X Challenge.”
Additionally, NCBA launched an ambitious investment plan to extend its presence in Kenya, to better serve its SME and corporate clients while reducing inequality through financial inclusion. Through the deal with Proparco, NCBA Group will enhance sectoral investments in agriculture and manufacturing as well as join the 2X Challenge, an initiative promoting women in entrepreneurship and SMEs.
The 2X Challenge is an initiative launched by international financial institutions in 2018 to advance opportunities for women and increase financing towards gender-equality. The project is expected to finance more than 1,600 MSMEs and SMEs, in the context of the Choose Africa initiative, the Agence Française de Dèvelopment (AFD) Group program that aims to support African entrepreneurs. It will contribute to SDG 5 “Gender Equality”, SDG 8 “Decent work and economic growth”, SDG 13 “Climate Action.
In line with its 2023-2027 Strategy, Proparco is collaborating with NCBA to walk the journey of implementing its sustainability strategy in the country, especially towards green financing, women-led businesses, and SMEs.