Trusted News Portal

EIB Global and Housing Finance Bank Invest €50 Million in Ugandan Private Sector


– Advertisement –

The Housing Finance Bank (HFB) of Uganda and EIB Global have announced a partnership to provide over two hundred and twelve billion Ugandan Shillings (€50 million) in investment support. This initiative primarily targets private sector entities, notably small and medium enterprises (SMEs), with a particular focus on women-led or women-owned enterprises.

The financing, part of the €200 million ACP Gender Finance Facility, aims to provide funding across Africa, the Caribbean, and the Pacific regions, addressing gender disparities in access to finance. The European Investment Bank (EIB) Global, as part of the European Investment Bank, has committed to prioritizing investments that empower women, aligning with the 2X Challenge Criteria and the European Commission’s recommendations.

Edward Claessen, Head of the EIB Regional Hub for East Africa, highlighted the significance of this partnership, particularly ahead of International Women’s Day celebrations in Uganda. He emphasized the EIB’s dedication to supporting entrepreneurship and business development, especially for women, as part of its broader commitment to addressing gender inequality.

Michael Mugabi, CEO of Housing Finance Bank, reiterated the bank’s strategic focus on partnerships aimed at driving socioeconomic development in Uganda. He emphasized the importance of enabling micro, small, and medium enterprises (MSMEs), particularly those owned by women, to contribute to the country’s economic growth.

– Advertisement –

This partnership builds on previous collaborations between Housing Finance Bank and the EIB, underscoring their shared commitment to fostering economic development in Uganda. Housing Finance Bank, ranked as the 9th largest commercial bank in the country, focuses on consumer banking, business banking, and housing finance.

The initiative is expected to create 2,000 skilled and unskilled jobs for local communities during its implementation. Additionally, HFB customers enrolled in the project will benefit from technical assistance under the African Women Rising Initiative delivered by the EIB.

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, emphasized the loan’s significant contribution to the objectives of the Team Europe Initiative ‘Sustainable Business For Uganda’ (SB4U) Platform and ‘Investing in Young Businesses in Africa’ (IYBA). He highlighted the potential for employment generation and promotion of MSMEs, particularly those with female beneficiaries.

Beyond the partnership with HFB, entrepreneurs in Uganda stand to benefit from the EIB’s SheInvest initiative, aimed at mobilizing gender-responsive investment across Africa. The EIB’s collaboration with financial institutions in Uganda underscores its commitment to supporting private sector businesses, particularly those in agriculture and gender thematic sectors.

With a focus on enhancing inclusive growth and sustainable economic development, this project aligns with Ugandan and EU priorities, aiming to reduce gender inequalities and unlock the country’s socio-economic potential. By empowering women entrepreneurs and expanding access to finance, the initiative seeks to drive transformative change and foster a more inclusive economy in Uganda.

– Advertisement –

Leave A Reply

Your email address will not be published.