Indian bank gives UDB 20 billion to lend to SMEs

The Export – Import Bank of India approves line of credit worth 5 million dollars or 20 billion shillings to Uganda Development Bank, to help small and medium enterprises that need to import from India.

The funds give UDB more capacity for medium and long term development financing towards trade, small and medium businesses and infrastructure projects.

The 4 percent per annum line of credit adds to the 76 billion earlier got from the African Development Bank, according to Patricia Ojangole, the Chief Executive of UDB.

India’s EXIM Bank’s intervention in Uganda’s key priority sectors of the economy namely Primary Agriculture and Agro-industrialization, Manufacturing, Tourism, Human capital Development, Infrastructure and Minerals, Oils has attracted funding from various regional and global funding partners.

The bank is also being appraised for funding of over $50 million (Ugx 190 billion) by various partners including European Investment Bank (EIB), French Development Agency (AFD), and Islamic Cooperation for Development of the Private sector (ICD).

The bank has an ambitious 5 year strategic plan for the years 2018-2022, hence the need to continuously expand and diversify its funding base with sovereign support from the Government of Uganda.

Deepak Kujur, the regional representative of India’s Exim Bank says this is just the beginning of India’s bid to ensure Uganda benefits from the Asian country’s growth fortunes.