Christopher Burke

Burke says that while Uganda has made progress in reducing the cost of agricultural finance, millions of smallholder farmers remain locked out because they are invisible to formal lenders.

Agriculture contributes about 24 per cent of Uganda’s GDP, 35 per cent of export earnings and employs 68 per cent of the labour force, according to the World Bank’s latest Economic Update. However, many productive farmers remain almost invisible to formal finance.

A coffee farmer may have years of cooperative deliveries, a known plot, established trees and a credible production plan. The cooperative may know the farmer’s history, a buyer may hold payment records and an agricultural company may understand seasonal requirements. This information is often fragmented or unavailable to banks. The issue is not only whether information exists, but who verifies and standardises what determines access to capital.

This gap has a price. Bank of Uganda reports that the average agricultural lending rate reached 20.7 per cent in the three months to March 2026, above the overall average of 18.65 per cent. At those rates, seasonal borrowing is difficult even where an investment is commercially sound.

Government recognises the problem. The Agricultural Credit Facility (ACF), administered through participating financial institutions, financed 11,358 loans worth UGX1.35 trillion (US$366 million) by December 2025. Government has also established a UGX176 billion (US$48 million) scheme for large commercial farmers, while the national budget prioritises commercial agriculture and digital transformation.

The challenge is not only cheaper capital, but efficient delivery to farmers whose loans are small, seasonal and costly to assess. Public policy can reduce funding costs, but access depends on how market actors translate policy into workable lending standards.

The ACF figures illustrate the imbalance. Micro-enterprises represented 76 per cent of beneficiaries but received only 3 per cent of disbursed value. Large projects represented 6 per cent and received 90 per cent. This reflects the transaction costs of identifying farmers, verifying production, assessing cash flow and monitoring many small accounts.

A practical response is a proportionate farm-credit profile containing information needed for a lending decision: verified identity, farm location, cultivated area, production history, cooperative or buyer records, financing needs, insurance status and the expected source and timing of repayment.

These profiles would not replace appraisal or automatically substitute for collateral. They would give banks a consistent reference point, reduce repeated data collection and help distinguish a functioning enterprise from an applicant about whom little can be verified. The profile would become a common interface through which institutions assess and manage risk.

Cooperatives are essential, but their responsibilities must be defined. They can confirm membership, aggregate applications, validate production and delivery records, support financial literacy and, where legally agreed, facilitate deductions from crop proceeds. Membership should not amount to an automatic guarantee, and cooperatives should not be expected to absorb losses arising from weak appraisal or inadequate monitoring.

Agricultural companies can support farm mapping, production information, input verification and agronomic advice, while insurers cover defined risks. Banks retain responsibility for due diligence, affordability assessment, pricing, disbursement, monitoring and recovery. This distributes governance functions among public, private and cooperative actors without removing accountability.

Bank of Uganda’s block allocation model demonstrates aggregation. During the final quarter of 2025, UGX5.04 billion (US$1.37 million) was disbursed to 1,156 micro-borrowers through loans not exceeding UGX20 million. The model allows lenders to assess clusters and use cash flow, movable assets, credit history and group guarantees rather than relying on titled land.

Women remain underrepresented in the ACF. In December 2025, they accounted for 23 per cent of beneficiaries and received only 3 per cent of disbursed value. Bank of Uganda reports stronger participation under block allocation, which permits consideration of cash flow, movable assets, credit history and group guarantees. This is important for women operating productive farms without formal land ownership.

Picture courtsey of OXFAM GB

Bank of Uganda estimates that at least 80 per cent of farmers lack conventionally bankable collateral. Regulators and banks should develop proportionate approaches to alternative security, seasonal cash-flow lending and cooperative verification while maintaining prudential standards.

Insurance is best integrated when a loan is designed. Under the Uganda Agriculture Insurance Scheme, government subsidises 50 per cent of premiums for small-scale farmers, 30 per cent for large farmers and 80 per cent in disaster-prone areas. The Ministry of Finance reported the annual UGX5 billion (US$1.36 million) allocation was inadequate and recommended UGX10 billion (US$2.72 million).

Insurance does not guarantee repayment, but it can prevent a defined weather event from causing an immediate default. Linking insurance, verified production information and seasonal repayment schedules makes risk more measurable and gives banks a stronger basis for pricing loans. Premium pricing and lending terms can therefore reward risk reduction without requiring a new legal mandate.

Digital technology can lower transaction costs, but more data is not automatically better. A farm profile is not neutral if it determines who becomes visible, insurable or creditworthy. Farmers must know what is collected, why, who can access it and how errors can be corrected.  Any system must comply with Uganda’s data-protection framework, apply informed consent and restrict information sharing to legitimate purposes.

Uganda’s Fourth National Development Plan links agro-industrialisation with science, technology and innovation. Agricultural finance is an obvious place to apply this direction. The priority should not be another stand-alone application or pilot database, but trusted arrangements through which banks, cooperatives, insurers and agricultural businesses use verified information responsibly. The state sets policy and prudential boundaries, while market actors operationalise them through lending, insurance and data standards.

The case is strengthened by the ACF’s reported non-performing asset ratio of 0.57 per cent at December 2025, compared with 3.7 per cent across commercial banks. Agricultural lending is not inherently unmanageable. It performs better when capital, information, technical support, insurance and repayment structures are aligned.

Uganda has begun lowering agricultural capital costs. The next priority is to reduce the cost of identifying, evaluating and financing credible farmers. This missing infrastructure may determine whether affordable finance reaches viable enterprises at scale or remains concentrated among borrowers already visible to banks. It also shows how public objectives can be implemented through market-based systems that coordinate behaviour, allocate responsibility and shape access to essential resources.

Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With over 30 years of experience, he has worked extensively on social, political and economic development issues focused on governance, agriculture, environment, extractives, policy formulation, communications, advocacy, conflict transformation, international relations and peace-building in Asia and Africa.

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For years, Uganda’s financial inclusion agenda has focused on bringing more people into the formal banking system. Increasingly, however, banks are discovering that the fastest route to underserved communities may not be through new branches, but through institutions that rural Ugandans already trust.

That shift was evident as Stanbic Bank Uganda announced a fresh push to finance Savings and Credit Cooperative Organisations (SACCOs) and village savings groups, positioning community-based finance as one of the country’s most effective channels for expanding access to affordable credit.

Speaking during the 28th Annual General Meeting of the Association of Microfinance Institutions of Uganda (AMFIU), Stanbic revealed that its partnerships with SACCOs and Village Savings and Loan Associations (VSLAs) have enabled more than UGX 362 billion in financing since 2021, reaching nearly four million Ugandans, the majority of them smallholder farmers.

The funding has also enabled approximately 780,000 members of community financial institutions to access credit, illustrating the growing role that cooperative finance is playing in Uganda’s rural economy.

But the bank is now raising the stakes.

To accelerate agricultural productivity, Stanbic has reduced its lending rate for agriculture-based SACCOs to 10 percent per annum, a move it believes offers some of the most affordable commercial financing available to the sector.

Multi-purpose SACCOs will access financing at 12.5 percent, with eligible institutions able to borrow up to UGX 7 billion.

According to Stephen Segujja, Head of the Economic Enterprise Restart Fund at Stanbic Bank, the strategy reflects a deliberate move away from viewing financial inclusion simply as account ownership.

“We believe financial inclusion is not simply about opening accounts or providing loans. It is about creating opportunities,” he said.

Stephen Segujja Head, Economic Enterprise Restart Fund,Stanbic Bank

For the bank, those opportunities include helping farmers improve productivity, enabling women entrepreneurs to grow their businesses and creating pathways for young people to build sustainable livelihoods.

Segujja noted that Stanbic’s relationship with SACCOs has changed dramatically over the past five years.

“At the start of 2021, as a bank we barely had any business to talk about regarding SACCOs and VSLAs. Today, the impact has been demonstrated not only within the bank but across the banking industry.”

The initiative forms part of Stanbic’s broader Women, Youth and Farmers (WYF) strategy, under which the bank committed UGX 1 trillion towards supporting Uganda’s productive sectors through tailored financing, business development and strategic partnerships.

Beyond credit, the bank is investing in strengthening the institutions themselves.

Working alongside partners such as aBi Finance, Stanbic is supporting SACCO digitisation while using its FlexiPay platform to extend digital financial services to cooperative members. More than 35,000 women leaders and farmer representatives have also received training in governance, financial management and leadership.

The emphasis on institutional strengthening reflects a wider recognition that sustainable financial inclusion depends as much on capable local organisations as it does on access to capital.

That message resonated throughout the AMFIU gathering.

AMFIU Board Chairperson James Onyutta said microfinance institutions continue to play an indispensable role in serving low-income households, rural communities and microenterprises that remain underserved by conventional banking.

Despite economic headwinds, he said, member institutions have continued expanding financial services to vulnerable groups while supporting enterprise development across the country.

Representing the Ministry of Finance, Planning and Economic Development, Commissioner for Financial Services Moses Ogwapus credited the microfinance sector with extending economic opportunities to millions of Ugandans, particularly women, farmers and entrepreneurs who previously had limited access to formal finance.

The latest announcements suggest Uganda’s financial inclusion agenda is entering a new phase. Rather than competing directly for individual customers, commercial banks are increasingly strengthening the community institutions that already command trust in rural areas.

If that model succeeds, the country’s next leap in financial inclusion may not come from building more bank branches—but from empowering the cooperative networks that have quietly become Uganda’s grassroots financial infrastructure.

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Equity Bank Uganda has renewed its commitment to supporting small and medium-sized enterprises (SMEs) by backing the 2026 Top 100 Mid-Sized Companies Survey, a flagship initiative aimed at helping businesses convert Uganda’s strong economic growth into commercial success through innovation, value addition and market expansion.

Launched on Thursday at KPMG’s Kampala offices, the survey enters its 19th year under the theme, “Monetizing Uganda’s Economy through Innovation, Value Addition and Market Expansion.”

Jointly organised by KPMG, Nation Media Group and Equity Bank, the annual programme has evolved beyond a business ranking exercise into one of Uganda’s leading private sector development platforms, providing research, benchmarking and practical support to help SMEs become more competitive.

Over the past 19 years, more than 2,400 businesses across Uganda and the wider East African region have participated, with many growing into large enterprises while others have improved governance, attracted financing and explored opportunities in capital markets.

Speaking during the launch, Equity Bank Uganda’s Head of SME Banking, Olivia Mugaba, said the survey enables the bank to better understand the realities facing businesses and tailor financial solutions that respond to their evolving needs.

“The survey gives SMEs a voice. It helps us understand their challenges, identify opportunities and design solutions that directly support their growth,” Mugaba said.

She noted that although SMEs account for more than 90 percent of Uganda’s private sector, many continue to struggle because of limited access to affordable finance, weak financial management, poor record keeping and inadequate business planning.

According to Mugaba, the insights generated through the survey have enabled Equity Bank to develop products that go beyond lending by combining affordable financing with technical support, partnerships and market access.

“Funding alone is not enough. We connect businesses to partners, technical support and market opportunities so they can use financing sustainably and grow,” she said.

The bank has leveraged partnerships with government agencies, development institutions and innovation hubs to mobilise affordable capital while strengthening the capacity of entrepreneurs across key sectors of the economy.

Nation Media Group Managing Director Susan Nsibirwa said this year’s theme reflects growing concern among businesses that strong macroeconomic indicators have yet to translate into meaningful gains at the enterprise level.

“The economy may be growing, but businesses are asking where that growth is. This year’s survey seeks to answer that question,” she said.

Beyond recognising top-performing companies, the programme also equips participating firms with practical knowledge through business forums covering taxation, corporate governance, financing, digital transformation and business strategy.

KPMG Partner Peter Kyambade said the 2026 survey will focus on three drivers of sustainable business growth—innovation, value addition and expanded market access.

“Businesses that embrace innovation and value addition will be better positioned to compete and grow sustainably in a rapidly changing world,” he said.

The Ministry of Tourism, Wildlife and Antiquities also endorsed the initiative, citing the growing opportunities available to SMEs across Uganda’s tourism value chain.

Director Basil Ajer said Uganda welcomed approximately 1.64 million visitors in 2025, with average visitor spending exceeding US$2,000 for the first time, creating new opportunities for businesses in hospitality, transport, accommodation and related services.

“Tourism growth creates opportunities for thousands of SMEs across accommodation, transport, hospitality and other support services,” Ajer said.

He added that government is working to ease the tax burden on tourism operators while improving access to affordable financing as the country prepares to host major international events, including the Africa Cup of Nations (AFCON).

The 2026 Top 100 Survey will run from July through October before culminating in an awards gala in December recognising Uganda’s best-performing mid-sized companies.

For Equity Bank, the initiative reinforces its broader strategy of supporting SMEs not only through financing but also through research, knowledge generation and ecosystem partnerships designed to help businesses scale sustainably.

As Uganda pursues industrialisation, export growth and value addition, stakeholders say the survey will provide critical insights to help SMEs translate the country’s economic potential into measurable business growth.

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Regional lender deepens diversification strategy with new insurance subsidiaries in Kenya and DR Congo amid growing demand for integrated financial services.

Equity Group shareholders have approved a record KShs 21.7 billion dividend and endorsed plans to launch new insurance businesses in Kenya and the Democratic Republic of Congo, marking a major step in the lender’s strategy to diversify beyond traditional banking.

Shareholders of Equity Group Holdings Plc have approved a record KShs 21.7 billion dividend payout and endorsed plans to expand into insurance through new subsidiaries in Kenya and the Democratic Republic of Congo (DRC), reinforcing the lender’s strategy of building a diversified pan-African financial services group.

The dividend, equivalent to KShs 5.75 per share, was approved at the Group’s 22nd Annual General Meeting held virtually on June 24. The payout represents a 35.5 percent increase from the KShs 16.04 billion, or KShs 4.25 per share, distributed for the 2024 financial year.

The approval signals continued shareholder confidence in the lender’s earnings performance and long-term growth prospects despite a challenging operating environment marked by regulatory changes, heightened competition and economic uncertainty across several African markets.

The dividend increase comes as financial institutions across East Africa increasingly seek new revenue streams beyond conventional lending. Banks are facing pressure to diversify their income sources amid tighter regulatory requirements, evolving customer expectations and the rapid digitalisation of financial services.

In one of the most significant resolutions passed during the AGM, shareholders approved the establishment of three new insurance subsidiaries under Equity Group Insurance Holdings Limited, subject to regulatory approvals.

The expansion will include a microinsurance company in Kenya with capital of KShs 192 million, alongside a life insurance company and a general insurance company in the DRC with capital investments of USD12 million and USD13.37 million respectively.

The move positions Equity to tap into Africa’s largely underpenetrated insurance market, where coverage rates remain among the lowest globally despite growing demand for risk protection products from households, small businesses and corporates.

Industry analysts say the decision reflects a broader trend among African banking groups seeking to evolve into integrated financial services providers by combining banking, insurance, payments and investment products under a single ecosystem.

For Equity, the strategy offers an opportunity to leverage its extensive customer network while generating additional fee-based income that is less vulnerable to fluctuations in lending margins and interest rate cycles.

Speaking after the AGM, Equity Group Chairman Prof. Isaac Macharia said the shareholder approvals underscored confidence in the institution’s governance framework and long-term strategic direction.

“The approvals received today reflect our shareholders’ confidence in Equity’s strategy and oversight. We remain committed to strong governance, prudent stewardship, and delivering sustainable value,” he said.

Group Managing Director and Chief Executive Officer Dr. James Mwangi said the insurance expansion would strengthen the institution’s ability to support customers through a broader range of financial solutions.

“The approvals to expand our insurance footprint strengthen our ability to offer more holistic financial services that help customers and communities manage risk, build resilience, and plan confidently for the future,” Mwangi said.

The expansion dovetails into Equity’s Africa Recovery and Resilience Plan, a long-term strategy focused on accelerating economic transformation through financial inclusion, entrepreneurship support, technology adoption and access to financial services.

Insurance has increasingly emerged as a strategic growth area for financial institutions across Africa, particularly as awareness of risk management grows among consumers and businesses. Despite strong population growth and expanding economies, insurance penetration remains relatively low across many African markets, creating significant opportunities for providers capable of offering affordable and accessible products.

The DRC, where Equity has established a strong banking presence following its acquisition of Banque Commerciale du Congo, represents one of the continent’s most promising but underserved insurance markets. The planned life and general insurance businesses could provide the Group with a platform to deepen customer relationships while supporting economic activity in one of Africa’s fastest-growing economies.

The AGM also approved several governance resolutions, including the re-election of board members Prof. Isaac Macharia, Jonas Mushosho, Dr. Evanson Baiya and Farida Khambata. Shareholders further endorsed the appointment of Dr. Eliane Ubalijoro to the board, subject to regulatory approval.

Ernst & Young was reappointed as the Group’s external auditor until the next annual general meeting.

From Left to Right: Equity Group Founder Chairman, Peter Munga, Group Chairman, Prof. Isaac Macharia, and Group Managing Director and CEO, Dr. James Mwangi, during the Group’s 22nd Annual General Meeting. Equity Group shareholders approved a record Kshs. 21.7 billion dividend payout at Kshs. 5.75 per share for the year ended 31st December 2025, representing a 35.5% increase from the Kshs. 16.0 billion distributed in respect of the 2024 financial year. Shareholders also approved the incorporation of new insurance subsidiaries in Kenya and the Democratic Republic of Congo (DRC), subject to regulatory approvals, underscoring the Group’s continued growth and regional expansion strategy.

With operations spanning Kenya, Uganda, Tanzania, Rwanda, South Sudan, the Democratic Republic of Congo and Ethiopia, Equity Group has evolved into one of Africa’s largest financial services institutions, serving approximately 22.7 million customers across the region.

In recent years, the lender has invested heavily in digital banking platforms, agency banking, financial inclusion programmes and ecosystem-based financial services designed to serve individuals, businesses and governments.

The latest shareholder approvals suggest Equity is betting that the future of African finance lies in integrated platforms capable of meeting a wide range of customer needs, from banking and payments to insurance and wealth creation.

For investors, the combination of a record dividend payout and continued expansion into new business lines signals that the Group remains focused on balancing shareholder returns with long-term growth opportunities across the continent.

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Uganda’s growing appetite for investment products will take centre stage this Friday when business leaders, policymakers and financial market experts gather for the inaugural SBG Securities Investor Day, a forum aimed at deepening public participation in the country’s capital markets.

The event, which will be headlined by MTN Uganda Chairman Charles Mbire, comes at a time when increasing numbers of Ugandans are seeking alternatives to traditional savings accounts in pursuit of higher returns and long-term wealth creation.

Hosted by SBG Securities, a subsidiary of Stanbic Uganda Holdings Limited, the forum is expected to bring together investors, shareholders, unit trust clients and members of the public for discussions on investment opportunities, financial literacy and the role of capital markets in economic development.

The event will begin with the company’s Annual General Meeting for unit trust investors before transitioning into a broader public engagement session focused on wealth creation and investment strategies.

Growing awareness of investment products such as collective investment schemes, equities, government securities and retirement products is gradually reshaping how individuals think about personal finance. Industry players say the challenge now is ensuring that information and market access keep pace with rising interest.

Grace Semakula, Chief Executive of SBG Securities, said the Investor Day has been designed to bridge information gaps that often discourage potential investors from participating in financial markets.

“Investor Day is intended to create a platform where investors, business leaders, SUHL shareholders and economically active Ugandans can engage in meaningful conversations about opportunities within Uganda’s financial markets and the broader economy,” Semakula said.

“As more Ugandans seek ways to grow their savings and secure their financial futures, we believe access to information and expert insights is critical in helping them make informed investment decisions.”

The forum reflects a broader trend within Uganda’s financial services industry, where institutions are increasingly focusing on investor education as demand for wealth management products expands.

At the centre of the discussions will be Charles Mbire, one of Uganda’s most prominent business leaders and investors. His keynote address is expected to explore regional economic trends, private sector growth and the strategic role that investments play in building sustainable wealth.

The programme will also feature a panel discussion on the theme, “Leveraging Financial Markets to Build and Grow Wealth.”

Among the panellists is Samuel Fredrick Mwogeza, Executive Director at Stanbic Bank Uganda, who is expected to discuss wealth management and estate planning strategies. Joining him will be Pumla Nabachwa, Team Lead Economist at the Bank of Uganda, who will provide insights into personal financial management, diversification and financial literacy.

Daisy Nabakooza, Director of Supervision and Market Conduct at the Uganda Retirement Benefits Regulatory Authority, will contribute perspectives on retirement planning and the role of capital markets in supporting long-term economic growth.

The event also highlights the growing strategic importance of SBG Securities within the Stanbic Uganda Holdings ecosystem.

The firm has recorded strong growth in assets under management while maintaining a leading position in Uganda’s stock brokerage market. Its expansion reflects increasing demand for professionally managed investment products as investors seek opportunities beyond conventional banking services.

The conversation expected to unfold on Friday mirrors a wider transformation taking place across Uganda’s economy. As incomes rise and financial literacy improves, more households are beginning to view investing—not just saving but as a critical pathway to building wealth.

That shift could have important implications for the country’s capital markets, creating a larger pool of domestic investors capable of financing business growth, supporting infrastructure development and strengthening long-term economic resilience.

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For decades, humanitarian responses to refugee crises have focused on immediate needs—food, shelter, healthcare and protection. While essential, such interventions often leave displaced populations trapped in cycles of dependency, with limited opportunities to rebuild livelihoods and regain economic independence.

In Uganda, a different story is beginning to emerge. As the world marked World Refugee Day on June 20, evidence from refugee-hosting districts across the country suggests that access to financial services is becoming a powerful tool for economic transformation. Increasingly, refugees are opening bank accounts, accessing credit, receiving digital payments and building businesses that support both their families and local economies.

The shift reflects a growing recognition that refugees are not merely beneficiaries of aid but potential contributors to economic growth when given access to the right financial tools.

One institution at the centre of this transition is Equity Bank Uganda, which has worked with humanitarian and development partners to expand financial access among refugee and host communities.

Through its digital banking infrastructure, the bank has facilitated cash transfers worth more than UGX301.7 billion to over 132,699 refugee households. While the funds have helped families meet immediate needs such as food, education and healthcare, they have also served as an entry point into the formal financial system for many beneficiaries.

Access to financial services remains a challenge in many refugee-hosting areas, which are often located far from urban centres and traditional banking infrastructure. To bridge that gap, Equity Bank has deployed more than 262 banking agents across refugee settlements and surrounding host communities.

The network has brought banking services closer to thousands of people who previously faced long and costly journeys to access financial institutions.

Through these agents, refugees can open accounts, receive payments, save money and conduct transactions within their communities, reducing dependence on cash-based systems and increasing participation in the formal economy.

Access to bank accounts aside, the most important step toward economic independence for many refugees has been access to credit.

Recognising that many refugees lack conventional collateral or formal credit histories, Equity Bank introduced lending programmes that assess borrowers based on business viability, character and cash flow potential rather than traditional security requirements.

Over the past three years, 381 refugee groups have accessed loans worth approximately UGX1.8 billion. The financing has supported businesses ranging from tailoring workshops and retail shops to agricultural enterprises and small-scale trading operations.

These ventures are generating income for refugee households while creating employment opportunities and stimulating economic activity within surrounding communities.

The impact is particularly visible among women entrepreneurs. Women account for the majority of beneficiaries reached through the programmes, with 7,182 women participating compared to 3,867 men. Their growing involvement reflects broader evidence that women’s economic empowerment often produces multiplier effects through increased spending on education, healthcare and household welfare.

Equity Bank officials visiting one of their clients in the Refugee settlement area

Uganda’s refugee policy has also played a critical role in enabling this progress. Unlike many countries that restrict economic participation among displaced populations, Uganda allows refugees to work, move freely and establish businesses. This framework has created opportunities for financial institutions, development agencies and private-sector actors to support refugees as active participants in local economies.

The result is an increasingly integrated economic model in which refugee settlements are becoming centres of entrepreneurship, commerce and financial activity.

When humanitarian resources move through formal financial channels, local businesses benefit from increased spending, markets expand and opportunities emerge for both refugee and host communities.

The broader lesson from Uganda’s model is that financial inclusion can be a powerful development tool. While humanitarian assistance remains essential, long-term resilience depends on creating pathways to self-reliance. Access to savings, payments, credit and business opportunities enables displaced populations to build assets, generate income and contribute to economic growth.

As the international community reflected on World Refugee Day, the experience emerging from Uganda’s refugee settlements offers compelling insights for policymakers and development practitioners alike.

The future of refugee support may lie not only in meeting immediate needs but also in unlocking economic potential. Increasingly, refugees are demonstrating that when given access to finance and opportunity, they can become entrepreneurs, employers and engines of local development.

For Uganda, that transformation is helping rewrite the refugee narrative—from one of displacement and dependency to one of enterprise and economic participation.

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Ugandan contractors seeking a larger stake in the country’s growing infrastructure sector have been handed a fresh opportunity after the Uganda Development Bank (UDB) reopened prequalification under its UGX 150 billion Local Contractors Financing Initiative.

The programme, launched in 2023, is designed to address one of the biggest barriers facing indigenous contractors—limited access to affordable and patient capital—while strengthening their technical and managerial capacity to compete for major public and private sector projects.

The latest prequalification exercise comes amid continued demand for contractor financing and follows growing interest from firms seeking support to participate in Uganda’s infrastructure-led development agenda.

According to the Private Sector Development Programme Annual Performance Report 2023/24, local suppliers accounted for 63 percent of public procurement awards, up from 48 percent the previous financial year. While the improvement signals progress, the figure remains below the national target of 75 percent, highlighting the capacity and financing challenges that continue to constrain local participation.

Implemented in partnership with the Uganda Institution of Professional Engineers (UIPE) and the Uganda National Association of Building and Civil Engineering Contractors (UNABCEC), the initiative offers a combination of financial and non-financial support aimed at strengthening local firms.

Prequalified contractors can access concessionary working capital, equipment and asset financing, performance guarantees and other tailored financial products. The programme also provides training in project management, financial management, corporate governance, contract administration and project programming.

“Ugandan contractors are central to Uganda’s industrialisation and infrastructure development agenda. However, many firms continue to face financing and capacity constraints that limit their ability to compete for and complete large infrastructure contracts,” said Sumin Namaganda, Senior Manager Corporate Affairs at Uganda Development Bank.

“Through this Initiative, UDB is providing both the financing and institutional support required to build stronger, more competitive Ugandan firms capable of delivering transformative projects and contributing to sustainable economic growth,” she added.

The initiative targets contractors operating across transport, energy, water and sanitation, agriculture, manufacturing, extractives, education, health, tourism, telecommunications, creative industries and the oil and gas sector.

By easing access to affordable financing and strengthening technical and managerial capabilities, the Initiative aims to increase local content participation, create employment opportunities, improve project delivery, and accelerate Uganda’s industrialisation agenda.

Since its launch, UDB has approved financing worth UGX 59.03 billion, with UGX 24.89 billion disbursed to qualifying contractors by March 2026. Beneficiary firms are currently implementing projects across multiple sectors, reflecting the programme’s growing role in expanding local participation in national development projects.

Contractors interested in joining the programme have until July 3, 2026, to submit Expressions of Interest. Prequalification documents can be collected from UDB’s head office and regional branches in Hoima, Gulu and Mbale.

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Equity Bank Uganda has been named Corporate Business of the Year at the African Business Chamber (AfBC) African Business Awards 2026, earning continental recognition for its role in promoting financial inclusion, diaspora banking, cross-border trade and investment across Africa.

The award was presented during a gala dinner held at The Royal Lancaster London on May 29, bringing together policymakers, investors, entrepreneurs, business leaders and members of the African diaspora to celebrate organizations contributing to Africa’s economic transformation.

Organised by the African Business Chamber, a UK-based organization that promotes trade, investment and commercial ties between Africa, the United Kingdom and the global African diaspora, the awards recognize institutions that are driving sustainable growth and economic impact across the continent.

For Equity Bank Uganda, the recognition reflects growing efforts to position itself as a financial bridge between Ugandans living abroad and investment opportunities back home.

The bank has increasingly focused on developing banking solutions that enable diaspora customers to save, invest, access financing and participate in Uganda’s economic development regardless of their location.

Speaking after receiving the award, Damalie Balungi, Manager for Diaspora and International Banking at Equity Bank Uganda, said the recognition highlights the importance of the diaspora community as a key driver of Uganda’s development.

“The diaspora community remains one of Uganda’s most important development partners. Beyond remittances, Ugandans living abroad are investing in businesses, real estate, education, agriculture and long-term wealth creation back home. At Equity Bank Uganda, our role is to provide the financial solutions, accessibility and support they need to achieve these goals regardless of where they live,” Balungi said.

Diaspora remittances have become an increasingly important source of foreign exchange and household income across Africa, supporting consumption, enterprise development and investment. In Uganda, remittances continue to play a critical role in financing education, housing, healthcare and small business growth.

Recognizing this opportunity, Equity Bank Uganda has expanded its portfolio of diaspora-focused products designed to simplify banking and investment for Ugandans abroad.

Among the offerings is the Diaspora Savings Account, which allows customers to operate accounts remotely without minimum balance requirements or monthly maintenance fees while accessing international Visa debit card services.

The bank also provides mortgage and equity release solutions that enable diaspora customers to unlock financing using property assets in Uganda. The facilities support investments in business expansion, property development, education and other wealth creation initiatives.

In addition, diaspora investors can access government securities, including Treasury Bills and Treasury Bonds, through the bank, providing opportunities to participate directly in Uganda’s capital markets while earning competitive returns.

Equity Bank has also strengthened its international banking infrastructure and cross-border payment capabilities to facilitate faster and more efficient movement of funds across markets.

According to Winfred Warui, Senior Manager for International Banking and Cross-Border Payments at Equity Bank Uganda, demand for investment and financial services among Ugandans abroad continues to grow.

“We continue to see increasing interest from Ugandans in the diaspora who want to invest, build businesses, acquire property and participate in opportunities back home. Our focus is to remove barriers by providing seamless international banking solutions, efficient remittance services, access to investment opportunities and personalized support that helps our customers make informed financial decisions,” Warui said.

The award comes at a time when African economies are increasingly looking to leverage diaspora capital, skills and networks to drive investment, entrepreneurship and economic growth.

As regional integration deepens and cross-border trade expands, financial institutions capable of connecting investors, businesses and communities across multiple markets are expected to play an increasingly important role in facilitating economic activity.

The African Business Chamber recognition highlights Equity Bank Uganda’s growing contribution to that agenda and reinforces its position as a key player in expanding financial access, mobilizing diaspora investment and supporting economic development both within Uganda and across the region.

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Uganda’s schools are increasingly turning to specialised financing solutions to manage term-opening expenses, highlighting the growing role of credit and financial inclusion in sustaining education delivery.

As thousands of learners return to classrooms across Uganda this term, a less visible but equally important reopening exercise is unfolding in school finance offices.

While parents focus on tuition fees, uniforms and transport, school administrators are grappling with a recurring challenge that has become one of the defining realities of Uganda’s private education sector: finding enough cash to keep operations running before fees are fully collected.

For many schools, the start of a term brings an immediate wave of expenditure. Teachers’ salaries must be paid, food stocks replenished, utilities settled and learning materials procured, often weeks before a significant proportion of school fees reaches school accounts.

The result is a persistent cash flow mismatch that education sector analysts say continues to constrain investment, service delivery and long-term planning.

“Schools operate in a unique financial cycle,” explains Brian Ddamba, Manager Bridge Finance at Equity Bank Uganda.

Brian-Ddamba-SME-Business-Development-Manager-addressing-School-owners-during-a-School-Bridge-Financing-seminar.jpg

“Schools have predictable revenue streams, but they also face significant upfront expenses every term. Our role is to provide the financial support necessary to bridge that gap, allowing school owners and administrators to focus on delivering quality education rather than worrying about short-term liquidity challenges.”

The challenge is particularly pronounced among privately owned schools, which account for a significant share of Uganda’s secondary and nursery education capacity.

Unlike businesses that receive revenue continuously throughout the month, schools typically rely on termly fee payments that often arrive in instalments. Yet operational costs remain constant and immediate.

Industry players say the financing gap has become even more apparent as schools face rising food prices, utility costs, infrastructure maintenance requirements and growing expectations from parents regarding the quality of learning environments.

Increasingly, financial institutions are positioning themselves to fill this gap through education-focused lending products.

Among them is Equity Bank Uganda, whose School Bridge Financing facility offers unsecured loans of up to UGX500 million to schools seeking working capital during peak expenditure periods.

The financing can be used for operational expenses such as staff salaries, food supplies, scholastic materials, facility maintenance and security upgrades.

Education stakeholders argue that such financing solutions are becoming increasingly important as schools seek to maintain standards while expanding capacity.

Many institutions are investing in classroom blocks, dormitories, digital learning tools and improved security systems to remain competitive in an increasingly crowded education market.

Without access to affordable financing, school proprietors often delay critical investments or divert resources away from long-term development projects to meet immediate operational needs.

Parents face a similar challenge.

For households with multiple school-going children, the beginning of each term can place substantial pressure on family budgets.

School fees, textbooks, uniforms and transport costs frequently coincide with other household obligations, forcing some families to delay payments or seek short-term financing.

To address this demand, financial institutions have also introduced school fees loan products targeted at parents and guardians.

Equity Bank’s education financing package, for example, provides school fees loans of up to Shs5 million per child, enabling families to spread payments over a longer period while ensuring learners return to school on time.

The growing availability of such products reflects a broader recognition that access to education is increasingly linked not only to school infrastructure and teaching quality, but also to financial inclusion.

As Uganda’s education sector expands and competition intensifies, experts believe financing will play a larger role in determining which institutions thrive and which struggle to remain sustainable.

For policymakers, educators and financiers alike, the challenge is no longer simply about getting children into classrooms.

It is increasingly about ensuring that schools themselves have the financial resilience needed to deliver consistent, quality education throughout the academic year.

That conversation is expected to continue on June 23 when education stakeholders gather at Hotel Africana for an engagement on school financing, institutional growth and investment opportunities within the sector.

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Uganda has unveiled a UGX 84.4 trillion spending plan for fiscal 2026/27, betting heavily on agriculture, infrastructure, industrialisation and wealth-creation programmes as the government pursues an ambitious plan to transform the economy into a USD500 billion powerhouse by 2040.

Presenting his first budget as Finance Minister, Henry Musasizi outlined a spending plan anchored on the government’s Tenfold Growth Strategy and a theme focused on the “full monetisation” of the economy through commercial agriculture, industrialisation, services, digital transformation and improved market access.

The budget comes at a pivotal moment for Uganda. Economic growth is estimated at 6.4 percent for the current financial year, with the economy projected to reach USD69.3 billion by June 2026. Government expects growth to accelerate further as oil production nears, exports expand and investments in productive sectors begin to yield stronger returns.

At the heart of the new budget is a significant shift toward sectors expected to generate exports, jobs and household incomes.

Agriculture, long described as the backbone of the economy, received one of the largest boosts. Government allocated UGX2.26 trillion to agro-industrialisation, the highest level of funding the sector has received, targeting agricultural research, irrigation, extension services, agro-processing and market access.

The tourism sector will receive more than UGX567 billion to support destination marketing, tourism infrastructure, conservation and hospitality development as Uganda seeks to increase foreign exchange earnings and attract more visitors.

Science, technology and innovation programmes have also been prioritised, receiving more than Shs1 trillion to support innovation, digitisation and business process outsourcing. Mineral development, including oil and gas activities, will receive additional funding as the country prepares for first oil.

Infrastructure remains another major beneficiary. Government has allocated approximately UGX10.8 trillion for roads, railways, electricity, water and transport projects. The allocation reflects Kampala’s continued belief that infrastructure investment is essential for lowering the cost of doing business and supporting industrial growth.

Meanwhile, wealth creation programmes such as the Parish Development Model, Emyooga and youth-focused initiatives will receive about UGX2.5 trillion, reinforcing President Yoweri Museveni’s long-standing emphasis on moving households from subsistence production into the money economy.

The budget also provides for increased public sector salaries, with the government raising the wage bill to Shs9.7 trillion and continuing phased salary enhancements for teachers and other public servants.

Yet beneath the optimism lies a persistent fiscal challenge.

Uganda’s public debt stood at approximately UGX126 trillion (USD34.86 billion) as of December 2025, equivalent to about 53 percent of GDP. While government maintains that the debt remains sustainable, debt servicing continues to consume about 40 percent of the budget.

Parliament’s Budget Committee estimates that debt obligations will absorb more than UGX33 trillion during the financial year, making debt servicing the single largest expenditure item in the national budget.

This reality highlights the balancing act facing policymakers. While the budget directs resources toward productive sectors expected to drive future growth, the pressure of debt repayments limits the government’s fiscal space and its ability to expand spending in areas such as health, education and social protection.

For businesses, however, the budget sends a clear signal. Government is prioritising sectors capable of generating exports, attracting investment and creating jobs. Agriculture, tourism, manufacturing, technology and energy are expected to remain at the centre of Uganda’s economic strategy over the coming years.

Whether the Shs84.4 trillion spending plan succeeds will ultimately depend not only on allocations but also on implementation. Uganda has no shortage of ambitious plans. The challenge, as always, will be translating budget promises into measurable economic outcomes for households and businesses across the country.

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