NCBA Group and Proparco on Monday announced a strategic partnership to facilitate green financing and promote women’s economic empowerment in Kenya.
NCBA Group, a prominent entity in the Kenyan financial services sector, has formalized a USD 50 million facility agreement with Proparco, a subsidiary of the AFD Group specializing in private sector development.
The funding will be channelled towards advancing NCBA’s “Change The Story” sustainability agenda.
Building on a longstanding association with the AFD Group, NCBA remains dedicated to enhancing its sustainability initiatives.
In 2023, the group launched the “Change The Story” platform, underpinned by five strategic pillars and a comprehensive set of fifteen commitments. Noteworthy among these commitments, pertinent to this collaboration, are endeavors to mobilize KES 30 billion for Green & Sustainable Financing, allocate a minimum of 30% of general services procurement expenditure to women and youth, and champion diversity, equity, and inclusion.
Furthermore, NCBA has unveiled an ambitious investment strategy to expand its footprint in Kenya, with a focus on better serving SMEs and corporate clients while fostering financial inclusion to combat inequality. Through the partnership with Proparco, NCBA Group will bolster sectoral investments in agriculture and manufacturing, and participate in the 2X Challenge—an initiative dedicated to promoting women in entrepreneurship and SMEs.
The 2X Challenge, initiated by international financial institutions in 2018, aims to enhance opportunities for women and amplify funding towards gender equality.
The project is poised to support over 1,600 MSMEs and SMEs within the framework of the Choose Africa initiative—a program by the Agence Française de Développement (AFD) Group designed to bolster African entrepreneurs. It is poised to contribute to Sustainable Development Goals 5 “Gender Equality,” 8 “Decent work and economic growth,” and 13 “Climate Action.”
Expressing gratitude to Proparco for their collaboration, John Gachora, the Group Managing Director of NCBA, emphasized the significance of cooperative efforts and strategic alliances in delivering value to stakeholders.
He added that the partnership will advance mutual objectives of sustainable economic development, green finance, women’s empowerment, and SME growth.
Aligned with its 2023-2027 Strategy, Proparco is actively engaging with NCBA to implement its sustainability agenda in Kenya, particularly focusing on green financing, women-led enterprises, and SMEs.
Echoing mutual goals and values with Proparco, Emmanuel Haye, Head of Financial Institutions Africa at Proparco, highlighted the shared commitment to addressing climate change through green initiatives and social disparities.
The collaboration is expected to bolster financial inclusion in Kenya, particularly benefiting women entrepreneurs, as the project qualifies for the 2X Challenge.
