By
Fahad Muganga
The East African Development Bank (EADB) has injected UGX 68 billion into three local banks to support the financing of over 1,500 small and medium enterprises (SMEs) across Uganda. The funds will be distributed through Centenary Bank, Housing Finance Bank, and Opportunity Bank, with a particular focus on SMEs in the agricultural sector and its value chain.
The signing ceremony, held at Kampala Serena Hotel, was graced by Ramadan Goobi, Permanent Secretary in the Ministry of Finance, Planning, and Economic Development, and Secretary to the Treasury.
Speaking at the event, Goobi, urged the government and its partners to support small and medium-scale enterprises (SMEs) with cheaper capital to invest for growth. He added that enabling SMEs to thrive is a collective responsibility that has many benefits.
“Bridging the financial gap for SMEs requires collective action. We must continue working hand-in-hand with development partners, financial institutions, and the private sector to create a business environment where SMEs can truly thrive,” he said.
Describing the financing as “a milestone,” Goobi said the loan facilities would offer affordable credit to over 1,500 SMEs, which he said is “a huge boost.” “We commend the EADB for making this possible,” he added.
Vivienne Yeda, the EADB Director General, said the SME sector deserves their support because it plays a crucial role in Uganda’s economic growth, contributing to 70% of GDP and creating close to 90% of all jobs.
“Despite their significance, SMEs face substantial challenges, particularly in accessing affordable financing, hampering their growth. To address this, the Bank has partnered with Centenary Bank, Housing Finance, Opportunity Bank in a USD15 million (about UGX68 billion).
This initiative aims to reach over 1,500 SMEs across the country, with a special focus on those operating in the agricultural sector and its value chain,” she said.
The three new banks now bring the total number of EADB’s local partner financial institutions in Uganda to five, in addition to FINCA and Opportunity Bank.
With support from KFW, the program operates throughout the agricultural value supply chain, from input providers to farmers to agricultural traders and buyers, to promote agricultural investment and to provide a sustainable income to the rural community, which should ultimately assist poverty reduction and food security.
Yedda said that EADB’s partnership with local financial institutions not only provides loan facilities to the ‘last mile’ but also offers technical support to ensure that these businesses remain innovative and progressive.
“I am inspired by the catalytic approach we have adopted to support SMEs through improved access to finance and technical assistance to financial institutions here in Uganda,” she said.
As part of the partnership, the banks would also offer capacity-building programs to enhance financial literacy and management skills for SME owners to enable them make smarter decisions, manage their operations efficiently, and scale their businesses for long-term success.
Centenary Bank’s Managing Director, Fabian Kasi, acknowledged the positive impact of the bank’s collaboration with EADB. “Our partnership with EADB has been instrumental in providing affordable credit to SMEs, particularly those in agriculture, a vital sector of the Ugandan economy. With EADB’s continued support, we are helping enterprises that previously struggled to access financing,” he said.
Housing Finance Bank Managing Director, Michael Mugabi, echoed similar sentiments. “This line of credit reinforces our shared commitment to supporting SMEs, which are essential to job creation, innovation, and Uganda’s GDP growth. The financing provides the much-needed capital to fuel entrepreneurship and resilience in our communities,” he stated.
Opportunity Bank’s CEO, Owen Amanya, highlighted the transformative potential of the SME sector.
“SMEs hold enormous promise for Uganda’s socio-economic advancement. At Opportunity
Bank, we are particularly focused on empowering women in SMEs, enabling them to uplift their families and build generational wealth. Access to affordable credit is a true game changer,” he added.
Over the past 11 years, EADB’s SME funding program has channeled USD61 billion in affordable credit to thousands of SMEs across Uganda, Kenya, Tanzania, and Rwanda, working through local financial institutions.
Apart from the SME financing, EADB also finances projects that promote environmental conservation, renewable energy, climate resilience, Infrastructure, Agriculture, Agribusiness, Tourism sectors among others.
