BY DAVID MAFABI
KAMPALA
The Small business operations have a very reason to smile after EFC Uganda Limited (MDI) and Oiko Credit Uganda sealed a financing deal worth UGX 8 billion for the benefit of Small businesses.
The Shs UGX 48 million is planned to go towards the financing of Small- and Medium-size Enterprises [SMEs] in Uganda.
Oiko Credit is a worldwide cooperative and social investor that promotes sustainable development by providing loans and capital in low-income countries. It is one of the world’s largest sources of private funding to the microfinance sector with partnerships spanning various continents, including Africa.
While EFC Uganda is working towards becoming the leading SME financial institution by 2025 and it is this vision that constantly propels us to find innovative solutions that support in addressing challenges facing SMEs in Uganda.
“And therefore creating easy access to financing is fundamental in our Vision 2025, realization knowing that the SME sector is a primary driver in Uganda’s journey to full economic growth and independence,” said Ms. Caroline Mulwa of Oiko Credit Uganda 8 August.
This financing deal has been sealed at a critical time when SMEs are on a recovery trajectory from the effects of the Covid – 19 pandemic.
Mr Shem Edmond Kakembo, Managing director EFC Uganda Limited said in the recent past, EFC Uganda has created different products to serve its SME base better and in April of 2022 EFC Uganda designed and rolled out a campaign dubbed “SIMBULA LOANS NE EFC” through which initiative loans close to UGX 13.5 BN were extended to Ugandans.
He explained EFC Uganda is also part of the Small Business Recovery Fund, a partnership with Bank of Uganda where entrepreneurs can access loans of up to UGX 100 million at very low interest rates not exceeding 10 %. Ends
About SMEs
SMEs, are categorised based on size (total assets) and the number of people employed by the entity, and small enterprises that employ between 5 and 49 are considered to have total assets between UGX 10 million and not exceeding UGX 100 million.
The medium enterprises, therefore, employ between 50 and 100 with total assets more than UGX 100 million but not exceeding UGX 360 million.
EFC
EFC is a microfinance deposit-taking institution (MDI) in Uganda. It is licensed and supervised by the Bank of Uganda, the central bank, and the national banking regulator. EFCUL lends primarily to small enterprises.
