KAMPALA – Proparco, a French Development Finance Institution, has extended financing of US$15m alongside US$15m from FMO (Dutch Development Bank) to dfcu Bank.
The facility is primarily earmarked for financing Small and Medium-size Enterprises (SMEs) in line with the bank’s SME-oriented strategy.
This facility was announced during a signature ceremony attended by Proparco’s Head of Financial Institutions in Africa, Emmanuel Haye at the Banks Head office in Kampala on December 12.
Haye stated that “Proparco is pleased to once again partner with dfcuand that the new credit line reflects the commitment of both institutions to support an inclusive and sustainable growth in Uganda.
Proparco and dfcu Bank have had a long-term partnership that has seen the former extend a series of facilities to the bank since 2005. The current facility is the 5th with the bank.
This, according to Haye, testifies to Proparco’s long term commitment to supporting SMEs in developing countries and to the deepening of the financial sector in Uganda.
“The operations of SMEs occupy an admirable position in the Uganda’s economic landscape. Despite being a key driver of economic growth, long term development finance remains a huge challenge. This line of credit will facilitate dfcu in providing a range of financing instruments to SMEs in order to enable them to continue to play their role in growth, innovation and employment.
“This facility will further strengthen the Bank’s capacity to grow its business and subsequently consolidate our position as a leading provider of long term development finance,” said Mathias Katamba, Incoming Chief Executive Officer, dfcu Bank.
FMO Chief Investment Officer Linda Broekhuizen said, “FMO is proud to partner with dfcu Bank, a bank that supports productive SMEs in Uganda. Supporting local enterprises through trusted partners like dfcu Bank is core to FMO’s mission.”
BY SAMUEL NABWIISO