Centenary Bank has signed a Loan Portfolio Guarantee agreement with the African Guarantee Fund worth US$10million to fund SMEs in Uganda.
The 5-year partnership aims to unlock financing intended to facilitate the promotion and growth and development of Small and Medium sized Enterprises.
Fabian Kasi, the Managing Director, Centenary Bank commended AGF for choosing the lender to be the implementing partner.
“We believe this partnership will go a long way in improving the private sector and economy in general. SMEs are a key component of our economy and account for over 80% of the private sector,” he said.
Uganda Investments Authority, a statutory agency in charge of initiating and supporting measures that enhance investment in Uganda, defines SMEs as entities that employ between 5 to 100 people, have assets not exceeding UGX 100 million and register revenue not exceeding shs360 million per annum.
AGF Group Chief Executive Officer, Felix Bikpo said this partnership will boost access to finance for more SMEs which will ultimately lead to job creation and revenue generation.