East African Business Week

KAMPALA, UGANDA-The European Investment Bank last week signed a financial support agreement with five Ugandan banks aimed at improving small and medium sized companies in the country.
Through the Private Enterprise Finance Facility 11, Ugandan Banks, Centenary Rural Development Bank, Bank of Africa (Uganda), Crane Bank, DFCU Bank and Housing Finance Bank signed a $57m (EURO 40 Million) loan agreement to assist their lending operations to local businesses that seek to expand or invest in new activities.
The second facility (loan) follows the Private Enterprise Finance Facility 1 that amounted to $42.5m (EURO 30 million). It has been largely used before its final phase by the end of this year. The first loan created about 1,700 new jobs in the tourism, manufacturing, agribusiness, construction and the educations sector according to figures released.
Mr. Plutarchos Sakellaris the European Investment Bank Vice President for Africa says the bank looks forward to working closely with five leading Ugandan banks to support small and medium sized companies across the country.
"By providing long term funds for investment projects we help the Ugandan financial sector contribute to sustainable economic growth and job creation in Uganda," noted Sakellaris.
Mr. Fabian Kasi the Managing Director of Centenary Rural Development Bank says that small and medium enterprises sit at the heart of the economic development and they are a vehicle through which the rural poor and the jobless Ugandans can transform themselves into the middle and industrial class of tomorrow.
"PEFF funds will certainly be a great boost to Centenary bank's attempts to help SMEs navigate the various financial and structural challenges that are holding back the immense potential wielded by Ugandan SMEs," stressed Kasi.
Edigold Monday the Bank of Africa managing director PEFF loan will enhance the bank's lending capacity to SMEs, provide for more flexibility in pricing and reimbursement periods with customers.
"The funds from the European Investment Bank strengthen our ability to respond to respond to the unique and growing needs of our customers by availing long-term foreign denomination loans," Mr. Juma Kisaame the DFCU bank managing director added.
Kisaame said the facility is a sign confidence in bankers and particularly the role banks play in the growth and development of SMEs.