Equity Group Holdings has unveiled an ambitious $6 billion (Sh773 billion) initiative aimed at supporting Africa’s social economic fabric that was torn apart by the aftermath the Covid-19 pandemic.
Dubbed ‘Africa Recovery and Resilience Plan’ (ARRP), the initiative seeks to create at least 50 million job opportunities in five key economic sectors to help nations rebound more robustly and sustainably.
The programme will address several issues including joblessness, poor agricultural production, business failures and poor health system among others.
Some of economic pillars to be advanced under this programme includes; food and agriculture extractives, manufacturing and logistics, trade and investments, micro small businesses and social and environmental transformation.
This is expected to stimulate economic growth and improve the overall living standard for millions of Africans who live in abject poverty.
Sub-Saharan Africa is projected to have 67 per cent of the world’s population living in extreme poverty, despite making up only 16 per cent of the world’s population.
The poverty threshold is set at $2.15 per day.
The International Labour Organization (ILO) projects that the youth unemployment rate in sub-Saharan Africa will be 8.9 per cent by 2025.
The IMF projects that growth in the region will be 3.8 per cent in 2024, which is expected to have little impact on youth unemployment.
“Through empowering agriculture, manufacturing, and service industries, the plan aims to create jobs, stimulate economic activity, and enhance the overall standard of living,” the lender said in a statement.
To achieve these goals, the mega plan has adopted a three-pronged approach to ensure a coordinated approach to recovery efforts across the continent.
It includes boosting productivity by enhancing the capabilities of raw material producers and integrating them into global supply chains to increase productivity across the continent.
On the other hand, the initiative has laid a plan to link primary and secondary sectors to global supply chains and capital markets, allowing African businesses to tap into international opportunities.
Equity Bank Group MD and CEO James Mwangi said the Group’s corporate strategy is to be a catalyst of wealth transformation for the continent.
“The plan ultimately aims to capacitate, finance and connect East African Community value chains to global supply chains,” he said.
The ARRP also aims to create a more resilient economic framework that benefits all stakeholders through leveraging social and economic engines by strengthening value chains and providing holistic financial solutions to productive ecosystems.
To actualize this plan, Equity Group has partnered with African and global institutions, including United Nations agencies and various governments, to garner support and endorsements for the plan.
“These partnerships are critical for mobilizing resources, sharing best practices and ensuring a coordinated approach to recovery efforts across the continent,” added the statement.
By the end of next year, ARRP plans to bring on board 100 million online businesses and consumers to enhance the economic and social inclusion of more productive households and financially enabled value chains.
The first phase of the plan will also have a multiplier effect of five million borrowing businesses and 25 million borrowing consumers.
Additionally, over 50 million: people will be employed directly and
indirectly as value chains expand
and deepen.