Long term lender, the European Investment Bank has extended Shs 45bn (EUR13million) credit line to Uganda’s indigenous bank, Housing Finance Bank for the latter to lend out to local firms especially small and medium enterprises.
This is the second time the two institutions are partnering for the same cause. The new credit line signed at the end of last month by representatives of the two institutions is expected to target players in manufacturing, agriculture, tourism among other sectors. Housing Finance Managing Director, Mathias Katamba said at the signing ceremony: “We are delighted to deepen our partnership with the EIB in supporting the development of SMEs in various sectors of the economy.”
On his part, Pim van Ballekom, the European Investment Bank Vice President said in a press release that small businesses need to invest to create jobs and explore new business opportunities. Over the last five years, the EIB has provided over EUR 400 million to 26 different financial institutions in East Africa including commercial banks, development banks and microfinance institutions through dedicated SME and microfinance credit lines.
Source : The Independent