Signature(s)
Summary sheet
- Credit lines - Credit lines
The facility provides funding to Housing Finance Bank to support limited scale projects undertaken by private sector entities, notably small and medium sized enterprises (SMEs).
The aim is to enhance access to finance for SMEs, with a particular focus on projects promoting gender equality and women's economic empowerment, in line with the 2X Challenge Criteria.
The facility provides funding to Housing Finance Bank for on-lending to eligible SMEs and Midcaps with at least 50% of the facility amount being on-lent to women owned or managed businesses. As such, it will tackle the long-standing constraints for SMEs by improving access to credit and tailoring loan terms to the specificities of women led businesses which may require longer amortisation and grace periods to cater for investment roll-out and a sufficient cash-flow ramp-up. The facility is expected to have a direct positive impact on job creation and access to finance of SMEs. The facility will carry longer tenors with an expected average tenor of 4.5 years compared to a a current average tenor of 3 years thereby contributing to the diversification of the funding structure of Housing Finance Bank and will in turn allow its clients to roll-out longer term investments. In addition to the financial facility, HFB will also benefit from a a technical assistance under the African Women Rising Initiative (AWRI) delivered by the EIB.
The project is aligned with national, EU and EIB priorities as it aims to enhance inclusive growth and sustainable economic development in Uganda. It will contribute to national objectives set out under the Uganda Vision for 2040 as formulated in the Third National Development Plan and will tackle priority area 2 (Promoting sustainable investments and inclusive growth and jobs) of the Multiannual Indicative Programme 2021-2027 for Uganda. This operation will also directly address the two following priorities of the EU Gender Action Plan III (EU GAP III): (iii) promoting economic and social rights and empowering girls and women, and (iv) advancing equal participation and leadership. The project also contributes to several Sustainable Development Goals.
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 EFSD+ Guarantee