Oikocredit supports Ugandan SMEs with funding of € 7.5 million

Micro, small and medium enterprises are crucial to Uganda’s economy, but they cannot always access the funds they need for growth and expansion. Oikocredit aims to change that with a new loan to Brac Uganda Bank. 

The tranche of funds, worth UGX 30 billion (€ 7.5 million), will help the bank support micro and small businesses in the country’s general trade, agriculture and transport sectors, both in underserved rural areas and across the country. 

Micro, small and medium enterprises (MSMEs) form the backbone of Uganda’s economy. Approximately 1.1 million MSMEs account for 80% of the country’s GDP and 90% of its private sector, according to Unctad. 

A further 1.8 million informal businesses are run by women, youth and refugees. 

Michael Kariah, Oikocredit Investment Officer, East and Southern Africa, said, “This partnership aligns with Oikocredit’s mission of advancing financial inclusion and sustainability and reflects our commitment to supporting economic development in Africa. The collaboration between Oikocredit and BRAC Uganda Bank Ltd represents a significant step towards empowering Uganda’s micro and small enterprises, ultimately contributing to the economic wellbeing of the nation.”

Read the press release for more details