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Signature(s)

Amount
€ 50,000,000
Countries
Sector(s)
Uganda : € 50,000,000
Credit lines : € 50,000,000
Signature date(s)
19/12/2023 : € 50,000,000
Link to source

Summary sheet

Release date
31 January 2024
Status
Reference
Signed | 19/12/2023
20230077
Project name
Promoter - financial intermediary
CERUDEB UGANDA MICROLOAN
CENTENARY RURAL DEVELOPMENT BANK LTD
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 50 million
not applicable
Location
Sector(s)
Description
Objectives

The operation consists of a senior loan financing the microcredit portfolio of the Ugandan credit institution Centenary Rural Development Bank (CERUDEB).

The aim is to support investments and working capital needs of micro-entrepreneurs and micro-enterprises with less than 10 employees. A specific focus will be on businesses in rural areas owned, run or managed by women (50%) and to borrowers operating outside the country`s capital Kampala.

Additionality and Impact

The proposed operation is a EUR-50m-loan to Centenary Rural Development Bank Ltd to finance micro-entrepreneurs and micro enterprises with a focus on female borrowers and borrowers living in rural areas.

In Uganda, access to financial services has increased to 66% in 2021 from 59% in 2017, however, there are still gaps based on wealth, gender, and geography. The operation provides an opportunity to have significant impact on access to finance in Uganda. It is expected to contribute towards private sector inclusive growth as it will address the market failures of imperfect information, the ensued obstacles to access to finance that micro-, small- and medium enterprises (MSMEs) are confronted with when applying for funding and the financial exclusion of vulnerable groups such as women and rural populations, due to their perceived higher risk and lower credit worthiness. This operation is in line with the European Commission's priority to promote jobs and sustainable and inclusive growth. It is expected to contribute to the European Investment Bank's objective outside the European Union for private sector development and job creation in addition to contributing to a number of Sustainable Development Goals (SDGs), in particular SDG 1 (no poverty), SDG 5 (Gender Equality), and SDG 8 (Decent Work and Economic Growth).


Environmental aspects
Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Milestone
Under appraisal
Approved
Signed
15 November 2023
19 December 2023
Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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