Equity Bank’s “Best Bank in Kenya” 2007 Euromoney award is a clear sign that the switch to microfinance — banking the un bankable — in the 1990’s proved a winning strategy. Do you think this model can be successfully exported to other markets?
The Equity business model is a market led and customer focused model which is easy, effective and accessible, hence it can be replicated in any market especially across Africa. The model is rooted in the African community and is customer responsive, providing services that meet customer needs. The near homogeneity of African culture and similar economic conditions makes it easier to roll it out in other African countries.

As a follow-up to the 2005 International Year of Micro credit, you took part in the UN Advisors Group on Inclusive Financial Sectors. Where do you see the barriers for further building an “inclusive financial sector”?
The legal framework and structures as they exist today provide challenges. Technological barriers still exist. Innovation barriers exist in existing institutional frameworks and organization cultures.

How do you think microfinance can help fight biodiversity loss?
The main role of microfinance institutions is to lend money to the community to enhance their livelihood. By empowering the community, the bank assists to raise the level of income which translates into better livelihoods. By raising the household income, communities start using modern energy sources such as solar energy in place of kerosene for lighting up their homesteads, gas for cooking in place of firewood which translate into direct environmental benefits. Microfinance institutions can also avoid financing projects that disrupt and threaten biodiversity.

Could you explain the bank’s involvement in promoting women entrepreneurs?
Most of Equity bank clients are in micro and small enterprises. Women comprise over 53% of clients. Loan absorption capacity by women owned business remains low and many business women require more than funds to grow their businesses. Launching a successful business requires more than finances, it requires an awareness of one’s knowledge, skills, abilities, aptitudes, values and preferences. The bank also realized that loan policies and procedures are not sensitive to women. This limits their access to loan products. The bank developed a product for small scale businesses that required flexible collateral, which has proven to be popular among women. Coupled with business support services, the bank has realized that women have great potential to excel in business, if they are given the necessary support such as flexible securities and training on business management. To respond to the special needs of women entrepreneurs, the bank has developed a package of Fanikisha (a Kiswahili word meaning: It can be done!) loan products that addresses their financial needs at all levels of business growth. Integrating women in economic activities on a larger scale would have massive positive social economic impacts on the family, community and the economy. An economy that excludes women cannot hope to achieve rapid economic growth and development and better equity or distribution of income. Empowering women financially is the most effective way to reduce poverty in our country. The bank is using both group methodology approach and an individual approach to lend to women entrepreneurs.

Lack of basic skills hinders women entrepreneurs from growing their businesses. What is the bank doing to enhance their capacity?
The bank has embarked on training women entrepreneurs in basic business skills to ensure that they are able to run successful businesses. Women are encouraged to form enterprise clubs which act as incubators allowing the bank to provide tailor made trainings. Through the enterprise clubs, women will also network, form business linkages, share experiences on best business practices. To enhance women participation in global trade, Equity bank has teamed up with UNDP to promote local and international business linkages. Through this partnership, UNDP provides women with technical capacity, especially training on entrepreneurship, as well as helps them in creating business linkages both locally and internationally. Women are also exposed to modern marketing skills such as the use of modern information communication technology. These ultimately equip women with skills and upscale their capacity to access and compete globally with their goods and services.

Could you explain how the Equity Bank Code of corporate practices and conduct (approved in March 2005) is implemented in practice?
The bank’s Corporate Social Responsibility (CSR) programme involves having the various branches participate in clean up exercises and also sponsor tree planting and reafforestation initiatives where they are located. All construction projects to be funded by the bank must receive certificate of compliance from the country environmental watchdog, the National Environmental Management Authority (NEMA). This ensures that the bank does not fund projects which are deemed to be detrimental to the environment and the general well being of the public. The bank actively participates in environment programmes and partners with leading players in environmental management.

What tools do you think are needed to further help the financial services sector integrate biodiversity into day-to-day decision making?
Financial institutions are becoming responsive to environmental issues. These are becoming an integral part to their day to day decision making process. Through the PESTEL business analysis (Political, Economic, Social, Technology, Environment and Legal), Equity Bank’s strategic plan involves integrating biodiversity into its daily operation. The environmental component is critical to the success of the bank’s operations. As part of its Corporate Social Responsibility (CSR), the Bank in tends to match its targeted customer base of 2 million by planting 2 million trees later in the year during the rainy season. In addition, the bank’s insurance arm will roll out a climate insurance policy which will provide cover to farmers from potential loss of their crop and livestock from drought. The product will be the first of its kind in this market.

Could you explain the bank’s involvement in the celebrations of the International Biodiversity Day?
Equity Bank’s active participation in the International Biodiversity Day, held on 22nd May, and organized in Nairobi by UNEP was informed by its desire to see a future where environmental concern takes a centre stage. The involvement of the youth hems in with the bank’s endeavour to provide opportunities to the youth to participate in the decision making process in the community. During the International Bio Diversity Day, Equity participated as a major sponsor of the event by sponsoring branded T-shirts that carried a message on bio diversity, and which were worn by the participants of the celebrations. Participation sensitized community on the need for protecting biodiversity.

The bank is actively involved in supporting the agriculture sector through educating farmers on best farming methods to ensure maximum yields while at the same time taking preventive measures against soil erosion. As a strong local brand, Equity would like to provide leadership in conserving biodiversity. My appointment to serve in the UNEP advisory board on commercialization of Micro finance in Africa will allow me to share my experiences and also be part of the team that will come up with strategies on how microfinance institutions can upscale their role in fighting biodiversity loss in Africa.

EquityBank