EADB Unveils $15 Million Fund to Support 1,500 Ugandan SMEs.
By Teddy Namayanja
Uganda’s small and medium enterprises (SMEs) are about to get a major boost, thanks to a $15 million fund (approximately 68 billion shillings) from the East African Development Bank (EADB). This financial support will be channeled through three local banks: Centenary Bank, Housing Finance, and Opportunity Bank, benefiting around 1,500 SMEs.
The initiative aims to facilitate financial assistance across the agricultural value chain, promoting investment, boosting rural incomes, and contributing to poverty reduction and food security. Ramadhan Ggoobi, Permanent Secretary in the Ministry of Finance, hailed the funding as a significant achievement, providing affordable credit to over 1,500 SMEs and marking substantial sector growth.
Vivienne Yeda, EADB’s Director General, highlighted SMEs’ significant impact on Uganda’s economy, accounting for 70% of GDP and generating almost 90% of employment opportunities. “EADB is working closely with local banks to provide technical assistance, fostering innovation among SMEs”. She said.
Peace K. Ayebazibwe, Executive Director and Chief Business Officer of Housing Finance Uganda, emphasized that resources are accessible to all Ugandans. She noted that SMEs play a vital role in employment and GDP, contributing about 80% of total employment and 50% of GDP in most African countries.
Key Benefits of the Fund:
• Financial Assistance: Across the agricultural value chain
• Promoting Investment: Boosting rural incomes and contributing to poverty reduction
• Food Security: Supporting sustainable agriculture practices
• Capacity Building: Enhancing financial literacy of SME owners
Participating Banks:
• Centenary Bank
• Housing Finance
• Opportunity Bank
Over the past 11 years, EADB has channeled $61 billion in affordable credit to SMEs across Uganda, Kenya, Tanzania, and Rwanda, also financing environmental conservation and renewable energy projects. This new fund is set to make SME sector a significant impact on Uganda’s.
