Uganda Breweries and Citibank unveiled a financing scheme to boost local brewery suppliers. This was during their annual Suppliers Conference meeting held in Kampala yesterday.
The Citibank financing scheme will offer suppliers an option of early payment on invoices accepted and verified by UBL to enable them to deliver on their obligations faster and more conveniently. This will allow suppliers to manage their cash flows better by freeing up cash to tackle other business logistics.
Access to the financing scheme dubbed “Citi Supply Chain Finance”, is easy and will not require the supplier to operate an account with Citibank. The supplier will also not be required to provide collateral, or pay any form of annual facility fee. All suppliers will be required to pay a discounting fee on each invoice that they choose to discount; this fee will normally be charged at a rate lower than what the supplier is currently getting in the market. The discounting period is flexible, up to 180 days depending on the agreed terms.
UBL Supply Director, Shane Healy said, “ As Uganda’s leading producer of beverages and one of Uganda’s largest manufacturers, we rely on a large number of companies to supply us with products and services that help us deliver our quality products to the market.
“We have committed to give local businesses a sizeable share of the cake that we have to offer in terms of contracted business support. Last year we spent more than UGX 50 billion through our engagements with local suppliers and contractors. Nevertheless like all international businesses, we have payment cycles that may not favour some of our suppliers. This new financing scheme from Citibank is a Godsend to many of our suppliers.” Said Shane
“We have invested a lot into production of our quality products and we want to ensure our local suppliers and contractors have a clear understanding of the strategies and obligations we have to meet the demands of our market.” He added
Citibank Head of Trade Products John Martin Ndawula said, “Citibank acknowledges the contribution Uganda Breweries has made to the development and growth of local suppliers and have entered into this partnership to further support the local supplier as part of our corporate agenda. Citi Supply Chain Finance is an easy- to-use, low cost Web-based solution designed to help you improve working capital by turning your receivables into cash faster.”
UBL classifies suppliers as important stakeholders and one of the objectives of this conference is to bridge gaps in order to ensure that UBL and its suppliers work together to deliver better value to the consumer.
This supplier conference brings together over 100 local and international SMEs to service the beverages sector in Uganda saw attendees hold in-depth business discussions with the UBL Senior Management Team and other key officials of the company. The conference was also an opportunity for cross supplier learning networking and knowledge sharing.