Bank, Uganda’s largest commercial microfinance bank has today signed a Loan Portfolio
Guarantee agreement with the African
Guarantee Fund, to fund SMEs in Uganda with credit worth USD 10 Million.
announcement was made during the signing ceremony between the two organisations
that took place at Mapeera House, the Bank’s Head Office in Kampala.
The 5 year partnership
aims to unlock financing intended to facilitate the promotion, growth and
development of Small and Medium sized Enterprises in Uganda.
the partnership, Mr. Fabian Kasi, the Managing Director, Centenary Bank commended
AGF for choosing Our Bank as an implementing partner for the Fund. “Centenary
Bank is pleased to collaborate with African Guarantee Fund (AGF) to provide
affordable finance to SMEs in Uganda. We believe this partnership will go a
long way in improving the private sector and economy in general. SMEs are a key
component of our economy and account for over 80% of the private sector.”
Investments Authority, a statutory agency in charge of initiating and
supporting measures that enhance investment in Uganda, defines SMEs as entities that employ between 5 to 100 people,
have assets not exceeding UGX 100 million and register revenue not exceeding shs360
million per annum.
Kasi added that, Centenary Bank is always seeking ideal partners with whom it
can better serve its customers with appropriate microfinance solutions in an
effort to promote economic growth and development.
a vibrant and youthful population, providing funds that aid SMEs to thrive,
create more jobs and contribute to the tax base is what our economy needs today,”
Mr. Kasi noted.
year, Centenary Bank extended a loan portfolio of approximately UGX.160 billion
to the SMEs in the economy and we confident that this money is opening new
possibilities across the country.
Group Chief Executive Officer, Mr. Felix Bikpo while commenting on the
partnership signing said, “Today’s signing ceremony between Uganda’s leading commercial
microfinance bank and Africa’s leading financial guarantee provider is
phenomenal for Ugandan SMEs. This partnership will boost access to finance for
more SMEs which will ultimately lead to job creation and revenue generation. We
are very proud to have partnered with a bank that has a vision for SMEs and
believes in their potential to spur the growth of Uganda’s economy.”
objective is to provide partial credit guarantees and capacity development to
financial institutions to stimulate financing of SMEs thereby unlocking their
potential to deliver exclusive growth in the continent.