The proposed facility fully aligns with Uganda’s “Vision 2040”, NDP II and the ADB’s CSP for Uganda. Uganda Development Bank Limited (UDBL), the country’s premier development financial institution’s duty is to help accelerate Uganda’s development by supporting small & medium enterprises (SMEs) and large-scale development projects in the various key growth sectors, thereby, address the financing gap to SMEs and Infrastructure projects in the country. The proposed financial package relates to the provision of: (i) a USD 15 million Sovereign-Guaranteed Line of Credit (LOC); (ii) a non-sovereign USD 5 million Line of Credit under the SME Program; and, (iii) a Technical Assistance Grant of up to USD 1 million. The sovereign LOC will enhance the lending capacity of UDBL at longer tenors and at a price that is reasonable for financial intermediation while the non-sovereign LOC will facilitate additional lending to SMEs and support UDBL’s intervention in focus areas. The TA linked to the SME program funding will help strengthen the capacity of UBDL staff in areas where some weaknesses have been identified. The AfDB longer tenor funds will allow UDBL to meet its customers’ borrowing requirements particularly in industries where long tenured funds are scarce/ unavailable due to the perceived risk profile of SMEs. It will help reinforce UDB’s role as a national development bank in implementing the country’s NDP and complement UDBL’s efforts to diversify its funding base and mobilize resources from other sources.

Uganda

African Development Bank Group

Africa Sub-Saharan Africa

Construction

19.07.2018

Original Url