The European Investment Bank (EIB) has signed a financing agreement with Uganda Development Bank (UDB) of €15 million (about Shs61.258 billion) to provide long-term financing for women economic empowerment in Uganda.
Both officials from the European Investment Bank and UDB are optimistic that the signed line of funding will empower women in Uganda economically because they will have access to long-term capital to grow their businesses while creating jobs.
The 10-year line of credit is a revolving fund meaning after one line of credit is done, another one can be signed again.
Speaking during the signing ceremony held in Kampala this week, EIB head of Financial Sector Division Global Partner countries Robert Schofield, said Uganda is the first country in Africa to receive millions of euros as part of the € 1 billion that EIB will give Sub Saharan African countries to empower women economically.
“Unlocking investment that enhances the economic participation of women is essential to accelerate development and reduce poverty,” he said.
Mr Robert added: “The first cooperation between Uganda Development Bank and the European Investment Bank will harness the potential of women entrepreneurs and business leaders across Uganda, enhance access to long-term local currency funding to build on our strong track record of backing the private sector investment across the continent.”
UDB managing director Patricia Ojangole said 40 per cent of their clients are women and with new funding, it will boost their lending to women-headed enterprises in the country.
INTEREST ON LOANS
UDB loans range from three years to 15 years with the interest rate ranging from 10 per cent to 16 per cent depending on the type of project one is undertaking.