Regional lender NCBA Group has sealed a deal with Proparco valued at US$50 million (about Kes6.5 billion) to drive the bank's "Change The Story" sustainability agenda forward. This financing is set to boost NCBA's green financing initiatives while also enhancing the bank's women economic empowerment programs.

Under the "Change The Story" platform, NCBA has committed to raising Kes30 billion for Green & Sustainable Financing while also allocating at least 30 percent of its general services procurement spend to women and youth.

This NCBA's partnership with Propaco - a subsidiary of the AFD Group dedicated to private sector development - underscores the regional bank's focus on promoting diversity, equity, and inclusion within its operations.

"This partnership 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, of NCBA.

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Agriculture and manufacturing

NCBA's ambitious investment plan includes expanding its presence in Kenya to better serve SMEs and corporate clients while reducing inequality through financial inclusion initiatives across the value chains.

Additionally, this collaboration with Proparco is poised to bolster sectoral investments in agriculture and manufacturing and see NCBA join the 2X Challenge—an initiative supporting women in entrepreneurship and SMEs.

"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,” noted Emmanuel Haye, Head of Financial Institutions Africa at Proparco.

The 2X Challenge, launched in 2018 by international financial institutions, aims to advance opportunities for women and increase financing for gender equality.

Further, the NCBA-Proparco alliance is expected to finance over 1,600 MSMEs and SMEs, contributing to several Sustainable Development Goals, including Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).

Mr Gachora lauded Proparco for their partnership, highlighting the importance of collaborative efforts and strategic partnerships in delivering value to stakeholders.

Proparco's alliance with NCBA aligns with its 2023-2027 Strategy, focusing on implementing sustainability strategies, particularly in green financing, women-led businesses, and SMEs in Kenya.

Haye cited the synergy between the goals and values of NCBA and Proparco, highlighting the positive impact the collaboration will have on financial inclusion, especially for women entrepreneurs.

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