East Africa’s Financial Sector Gets Boost with FMO’s USD 10 M Equity Infusion in I&M Group

By  |  January 24, 2025

FMO, the Dutch entrepreneurial development bank, has made a significant commitment of USD 10 M in primary equity to I&M Group as part of a broader ~USD 85 M transaction. The investment round was led by private equity firm AfricInvest, a long-term partner of FMO and a key player in fostering private sector development across Africa.

This funding aims to strengthen I&M Group’s growth trajectory by supporting portfolio expansion in its existing markets while exploring new opportunities within the East African region.

I&M Group is a multi-country banking institution with a rich legacy of success in financial services spanning several decades. Headquartered in Kenya, the group offers a diverse portfolio of banking and financial solutions.

Its services range from commercial and retail banking to corporate and institutional services, wealth management, and bancassurance. Additionally, the group provides financial advisory services, real estate investment opportunities, and custody and investment solutions, ensuring it meets the varied needs of individuals, small and medium-sized enterprises (SMEs), and corporates.

With approximately 86 branches across Kenya, Mauritius, Tanzania, Rwanda, and Uganda, I&M Group has become a vital enabler of financial inclusion in East Africa.

The group’s operations are supported by its subsidiaries, including I&M Bank Limited, I&M Capital Limited, I&M Realty Limited, BCR Investment Company Limited, I&M Burbidge Capital Limited, Giro Limited, and I&M Bank (Uganda) Limited.

The breadth of its offerings and regional footprint has positioned I&M Group as a key player in financial services across East Africa. It is listed on the Nairobi Securities Exchange, with its Rwandan subsidiary, I&M Bank Rwanda, traded on the Rwanda Stock Exchange.

The funding is expected to support the expansion of its portfolio in key markets, strengthening its ability to serve existing clients while positioning the group to explore new opportunities across East Africa. The investment also aligns with I&M Group’s broader goal of supporting financial inclusion and providing services tailored to micro, small, and medium-sized enterprises (MSMEs) and corporate clients.

By channelling resources into these initiatives, I&M Group aims to widen its reach and enhance access to financial services for underserved populations.

This is not the first time I&M Group has attracted private equity backing, having previously secured investments from Kibo Capital Partners, British International Investment (BII), and AfricInvest.

For FMO, the investment is part of its wider efforts to support private sector development in emerging markets. The organization focuses on initiatives that foster job creation, improve access to finance, and support long-term economic growth.

This partnership is poised to drive meaningful impact in East Africa, offering not just just capital, but also shared vision for economic development.

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