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Equity Group sees positive DRC contribution from second half, Mwangi says

By David Whitehouse
Posted on Thursday, 27 May 2021 07:23, updated on Thursday, 10 June 2021 16:52

Equity Bank's Chief Executive Officer James Mwangi is seen during a Reuters interview in Nairobi
Equity Bank's Chief Executive Officer James Mwangi in Nairobi, Kenya November 11, 2020. REUTERS/Jackson Njehia

Equity Group expects its BCDC operation in the Democratic Republic of Congo (DRC) to make a “significant” contribution to group profitability from the second half of this year, CEO James Mwangi tells The Africa Report.

One-off costs for the business have so far prevented such a contribution, Mwangi said following the release of Equity Group’s first-quarter results. In 2022, Mwangi expects that Equity BCDC will start making a profit contribution proportionate to the 27% share of Equity Group’s balance sheet for which it accounts, as synergies and economies of scale come into effect.

“That growth won’t need additional investment,” Mwangi says. BCDC will be “leveraging the group’s existing infrastructure and digital assets.”

Equity Group has operated in the DRC since its purchase of Equity Bank Congo in 2015. The bank bought Banque Commerciale du Congo (BCDC) in August 2020. Equity BCDC, created by merging EBC with BCDC at the end of last year, is the second-largest subsidiary of Equity Group.