As part of its continued support for investment by companies across East Africa the European Investment Bank today agreed a new UGX 45 billion (EUR 13 million) credit line with Housing Finance Bank to support investment by local firms in both Ugandan shillings and foreign currency. This marks the second time that Europe’s long-term lending institution has supported SME lending through Housing Finance Bank.
The new credit line, signed earlier today in Kampala by representatives of the Housing Finance Bank and European Investment Bank, is expected to support lending to companies active in the manufacturing, agriculture and tourism sectors.
While speaking at the joint signing of this partnership agreement, the Housing Finance Bank Managing Director Mr. Mathias Katamba said that “We are delighted to deepen our partnership with EIB in supporting the development of SMEs in various sectors of the economy particularly Agriculture, education, construction, manufacturing and tourism”. Through expansion of our network and improvement of our customer value proposition, HFB will continue to deliver innovative, convenient market led financial solutions to its customers across the country. The 45bn Ushs. (13 million Euros credit line) and technical assistance from EIB will go a long way in making that possible.
“Small businesses need to invest to create jobs and explore new business opportunities. The new partnership agreed today will benefit companies operating in a broad range of sectors across Uganda and builds on successful past cooperation with Housing Finance Bank. The European Investment Bank is committed to supporting private sector investment across East Africa and recognizes the benefit of working with leading financial institutions in the region.” added Pim van Ballekom, European Investment Bank Vice President.
“Europe is committed to supporting economic development in Uganda and today’s new engagement by the European Investment Bank will directly benefit companies across Uganda. As the EU Bank, the European Investment Bank has a strong track record supporting small business and infrastructure that directly benefits Ugandans. In recent years the European Investment Bank has supported upgrading of the supply of clean water in Uganda, addressing Uganda’s electricity needs through the Bujagali power project and improved road links. Working with Ugandan banks further helps to achieve these goals” said His Excellency Kristian Schmidt, Ambassador of the European Union to Uganda.
Over the last five years, the European Investment Bank has provided over EUR 400 million to 26 different financial institutions in East Africa through dedicated SME and microfinance credit lines. This has included cooperation with commercial banks, development banks and microfinance institutions in Uganda, Kenya, Tanzania and Rwanda.
Supporting lending to small and medium sized companies is a key priority for the European Investment Bank, the world’s largest multilateral financing institution. Last year the European Investment Bank Group provided nearly EUR 22 billion for SME lending around the world. Experience working in a diverse range of countries with a broad range of financial partners enables understanding of different lending requirements and economic challenges to be shared.