Dfcu Bank received US$30 million (about Shs111 billion) from two European firms — Proparco and the Dutch development bank or FMO, to support the financial institution’s efforts in financing SMEs in Uganda.
Each firm contributed half of the money.
The funding was announced at a signing ceremony attended by Proparco’s East Africa Regional Manager Jean-Benoît du Chalard and the Deputy Head of the Financial Institutions and Inclusion Division Emmanuel Haye.
Dfcu Bank has been a key player in supporting Ugandan entrepreneurs through a number of projects, including investment clubs, training workshops, and cash prize competitions.
At the release of the funds, Haye said that Proparco was “pleased with this renewed partnership with dfcu. This credit line illustrates the two institutions’ commitment to sustainable and inclusive growth in Uganda.”
The long-term partnership between Proparco and dfcu Bank has resulted in a series of financings granted to the Ugandan bank since 2005.
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This new financing constitutes the fifth Proparco transaction with dfcu Bank, reflecting a long-term commitment of Proparco to support SMEs in developing countries and strengthen the financial sector in Uganda.
“The activities of SMEs occupy a prominent place in the Ugandan economic landscape. Although a key driver of economic growth, long-term development funding remains a challenge. This line of credit will enable dfcu to provide a set of financial instruments for SMEs to enable them to play their role for growth, innovation and employment,” said Juma Kisaame, Managing Director of dfcu Bank.
“This facility will further strengthen the bank’s ability to expand its business and, as a result, consolidate its position as a leader in long-term development finance.”
“The FMO is proud to work with dfcu, a bank that supports productive SMEs in Uganda. Supporting local businesses through trusted partners like dfcu is at the heart of the FMO’s mission, “said Linda Broekhuizen, Chief Investment Officer at FMO
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