Signature(s)
Summary sheet
- Credit lines - Credit lines
The credit facility is provided to Stanbic Bank Uganda for on-lending to eligible micro, small and medium-sized enterprises (MSMEs) as well as mid-caps. The facility will focus on the following thematic areas: i) sustainable agriculture and food security ii) women economic empowerment iii) climate action and environmental sustainability on a best effort basis.
With 90% of Uganda's private sector made up of MSMEs, which account for 80% of the manufactured output and 75% of the gross domestic product (GDP), the operation seeks to support this major segment of the economy by providing sub-loans targeted at female micro-clients and agricultural or climate-related SME projects. The operation is part of a joint collaboration with the Gates Foundation under its Woman Economic Empowerment work in East Africa aiming to increase access to finance for female micro-entrepreneurs at reasonable interest rates and lower collateral requirements. Additionally, it contributes to the recently approved "Women for Stronger Communities and Growth" initiative, endorsed by the EIB Management Committee.
The EIB will provide a EUR 100m loan to Stanbic Bank Uganda ("SBUL"), for on-lending to eligible micro, small and medium-sized enterprises ("MSMEs").
The operation is part of a joint collaboration with the Gates Foundation under their Woman Economic Empowerment work in East Africa, and innovative facility fostering women economic empowerment through financial inclusion.
The operation addresses the issues of providing adequate access to finance for MSMEs, a particularly vulnerable segment of Uganda's economy that is active mainly in the agricultural sector and employs 70% of the adult population. SBUL will provide EUR 20m to women borrowers and EUR 80m to eligible projects in the agricultural sector, a priority sector for the EU and Uganda.
Aligned with EU cooperation- and partnership priorities, the operation contributes to the EU`s priority value chains: coffee, cocoa and horticulture and aligns with the on-going priorities towards the "Promotion of sustainable and inclusive Growth and Jobs" and towards the promotion of a "Green and Climate Transition".
The operation will contribute to achieving a number of 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