Equity Bank and Unilever partner to boost liquidity for local distributors

June 26, 2025 in Business, Companies, Financial Services by Editor

Equity Bank Uganda and Unilever Uganda have announced a strategic financing partnership aimed at easing access to affordable working capital for businesses within Unilever’s distribution network. The announcement was made during a joint breakfast engagement held in Kampala under the theme “Unlocking Financing Opportunities for Distributors.”

The partnership will enable distributors, stockists, and retailers within Unilever’s supply chain to maintain healthy inventory levels, manage cash flow more effectively, and strengthen operational capacity. Central to the initiative is Equity’s “Eazzystock” working capital loan product, designed specifically to support growth in manufacturing turnover through improved supply chain liquidity.

The loan product offers flexible financing ranging from UGX 1 million to UGX 3 billion. Loans of up to UGX 1 billion are unsecured, while those above this threshold require security or collateral. The cost of borrowing is pegged at a total drawdown fee of 1.15pc, with an additional insurance fee of 0.05pc. Businesses only need to sign up once, and the facility includes account auto-sweep functionality for efficiency. Loan terms are reviewed on a quarterly basis.

Speaking at the event, Equity Bank Uganda Acting Head of Corporate Banking, Christine Mukasa Mugerwa, underscored the bank’s commitment to supporting grassroots businesses: “At the heart of Equity’s mission in Uganda is driving social and economic transformation. That bar of soap matters. So how do we ensure it reaches the people who need it, while transforming the shop attendant’s life in the process?”

Barbara Aseera, Head of Manufacturing and Logistics at Equity Bank Uganda, emphasized that the partnership aims to improve liquidity and enhance supply chain stability within Unilever’s distribution ecosystem. “This partnership facilitates easier access to affordable working capital, enabling Unilever’s distribution partners to maintain inventory levels, improve cash flow management, and ultimately strengthen the supply chain across Uganda,” she said.

Unilever Managing Director Luck Ochieng, speaking virtually from Nairobi, noted that this collaboration is part of a broader regional effort. “Through key partnerships in trade and distribution, we’re building a program to boost business growth, with support from Equity Bank across Kenya, Rwanda, and Uganda.”

The Equity-Unilever initiative reflects a growing trend of private-sector collaborations to improve access to finance for small and medium-sized enterprises (SMEs) within supply chains, particularly in fast-moving consumer goods (FMCG). The new financing tool is expected to improve efficiency and resilience for Uganda’s retail and distribution sector.