EADB launches a UGX68 billion fund for Ugandan SMEs

Kampala, 27th September — The East African Development Bank (EADB) has announced the launch of a UGX 68 billion (USD 15.8M) fund aimed at accelerating the growth of Small and Medium Enterprises (SMEs) across Uganda. In partnership with Centenary Bank, Housing Finance Bank, Opportunity Bank, FINCA Uganda, and Finance Trust, EADB seeks to provide financial support to over 1,500 SMEs, with a focus on key sectors like agriculture and the agricultural value chain. During the signing ceremony, EADB’s Director General, Vivienne Yeda, emphasized the critical importance of SMEs in driving East African economies. “SMEs are the backbone of East Africa, and EADB is committed to nurturing their growth by working alongside local financial institutions,” Yeda remarked. She further noted, “Over the past 50 years, EADB has been a key player in fostering economic development in East Africa through strategic financing, positively impacting millions of lives across the region.” Permanent Secretary in the Ministry of Finance, Planning and Economic Development Ramadhan Ggoobi who was the chief guest said, “ We are immensely proud of the work of EADB. Bridging the financial gap for SMEs required a collective action. We must work hand in hand with development partners, financial institutions and the private sector to create an environment where SMEs can truly thrive.” The leaders of the partnering financial institutions praised the initiative, highlighting its potential to empower businesses and uplift communities. Three of the retail financial institutions signed agreements today.

Centenary Bank’s Managing Director, Fabian Kasi, acknowledged the positive impact of their 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.

The Bank had earlier signed similar agreements with Finance Trust Bank which was represented by CEO Anne Nakawunde who lauded the Bank for many years of support. “Our products are specially designed to support women and our relationship with EADB has been instrumental to empowering women. We are especially proud of the financial literacy programs we have in place that has helped hundreds of women understand how to run businesses.”

Finca Uganda Executive Director Robert Kakande also spoke highly of the relationship with the bank quipping, “ The support from EADB has been immense. We plan to continue in this tangent so we can equip more SMEs with the tools to do business successfully.”

Over the past 11 years, EADB’s SME funding program supported by international institutions such as Germany’s KfW Development Bank has channeled USD 61 million in affordable credit to thousands of SMEs across Uganda, Kenya, Tanzania, and Rwanda through local financial institutions.