By: OrePulse

EquityBCDC, the Democratic Republic of Congo subsidiary of Kenya's Equity Group, says it is able to arrange loans approaching $700 million for mining companies by tapping funding capacity across its parent company's broader regional network.

Managing Director Willy Mulamba said the lender could raise still more through syndicated loans as governance in Congo's mining sector improves.

Mining remains a major component of EquityBCDC's loan book. The Democratic Republic of Congo is the world's second-largest copper producer, and copper prices have recently been trading near record levels.

"We have many clients that we've been supporting, particularly in the mining sector," Mulamba said, adding that some individual loans extended by the bank have exceeded $100 million.

Under central bank rules in the Democratic Republic of Congo, EquityBCDC's own lending capacity is capped at roughly $180 million. Financing deals above that threshold would need support from the wider Equity Group or from syndicates made up of multiple lenders.

Mulamba said the bank is also "trying to expand beyond mining," building up lending to small and medium-sized businesses and widening access to broader financial services across the country.

The bank has set a goal of reaching 30 million customers by 2030, a target it expects to meet largely through digital banking. Its agent network currently spans roughly 10,000 to 12,000 outlets nationwide, and the lender also processes salary payments for close to 300,000 civil servants.

Net profit at the bank climbed 32 percent to $160.5 million last year, and Mulamba said he anticipates similar growth in the current year.

Congo's central bank is separately working to encourage greater use of the Congolese franc, after data showing more than 90 percent of deposits and 97 percent of loans across the banking sector remain denominated in U.S. dollars.