Oikocredit provides Brac Uganda Bank Ltd with € 7.5 million to empower micro and small businesses

Amersfoort, the Netherlands – Impact investor Oikocredit has announced a loan of UGX 30 billion (€ 7.5 million) into BRAC Uganda Bank Ltd to support the growth and development of micro and small businesses in the African nation, particularly in the general trade, agriculture, and transport sectors.

BRAC Uganda Bank Ltd, a leading financial institution in the country, will use the funds to help realise its mission of providing affordable credit to underserved rural populations and small enterprises across Uganda.

Micro and small businesses form the backbone of Uganda’s economy. Oikocredit’s outlay will enable these enterprises to access the financial resources they need to expand their operations and create more employment opportunities.

Moyo Nkosilathi, Brac Uganda Bank Ltd CEO said, “The funding from Oikocredit will play a pivotal role in advancing our mission to extend affordable and accessible financial support to small and micro enterprises throughout Uganda. This initiative aims to enhance the businesses and overall livelihoods of these enterprises.

“BRAC Uganda Bank has played a pivotal role in shaping the microfinance landscape in the country by establishing 162 branches nationwide, fostering financial inclusion for individuals at the base of the economic pyramid who often face challenges accessing support from mainstream banks. Through our strategic partnership with Oikocredit, we aim to advance this mission by leveraging funding and capacity-building initiatives,” he added.

Michael Kariah, Oikocredit Investment Officer, East and Southern Africa, said, “We are enthusiastic about our involvement in BRAC Uganda Bank’s efforts to make a meaningful impact on Uganda’s economy by providing affordable credit to the underserved rural population.

“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,” he added.

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy. 

Oikocredit's loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably. 

Oikocredit finances more than 500 partners, with total development financing capital outstanding of € 1,037.2 million (at September 2023). For more information, visit www.oikocredit.coop 

About BRAC Uganda Bank Limited

BRAC Bank Uganda is a leading financial institution dedicated to providing financial services to individuals and businesses across Uganda. With a focus on reaching underserved populations, Brac Bank Uganda aims to contribute to economic growth, job creation, and poverty reduction through responsible and inclusive financial services. To learn more, visit https://www.bracugandabankltd.com/

Note for editors 

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org.