Ramadhan Ggoobi, the permanent secretary in the Ministry of Finance, has called for government and partner support for small and medium enterprises (SMEs) with affordable capital to foster growth.
At a signing ceremony, EADB announced a UGX 68 billion injection into three local banks for onward lending to grassroots SMEs.
Mr Ggoobi described this funding as a “milestone,” emphasising that it would provide affordable credit to over 1,500 SMEs, a significant boost for the sector.
Vivienne Yeda, EADB’s Director General, highlighted the crucial role of SMEs in Uganda’s economy, noting they contribute 70% of GDP and create nearly 90% of jobs.
Despite their importance, SMEs struggle to access affordable financing. The partnership with Centenary Bank, Housing Finance, and Opportunity Bank, amounting to $15 million (about Shs68 billion), aims to address this issue, particularly in the agricultural sector.
This initiative increases EADB’s local partner financial institutions to five, alongside FINCA and Opportunity Bank, facilitating financial support across the agricultural value chain to promote investment and enhance rural income, ultimately aiding poverty reduction and food security.
Yeda noted that EADB’s collaboration with local banks includes technical support to ensure SMEs remain innovative.
The banks will also implement capacity-building programs to improve financial literacy among SME owners, helping them make informed decisions and manage operations efficiently.
Leaders from Centenary Bank, Housing Finance, and Opportunity Bank echoed the importance of this funding in empowering SMEs and supporting job creation, innovation, and resilience in Uganda’s economy.
Over the past 11 years, EADB has channeled USD 61 billion in affordable credit to SMEs across Uganda, Kenya, Tanzania, and Rwanda while also financing projects promoting environmental conservation and renewable energy.
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Nice article