At a recently held virtual forum titled ‘Bank of Uganda address on credit relief measures for school loans’, Anne Juuko, the Stanbic Bank Chief Executive, said the bank’s support to the education sector starts with its purpose ‘Uganda is Our Home, we drive Her Growth’.   She said “There is no way you can drive economic growth without enhancing human capital development. The education sector as a business is 100% bankable. Let’s understand your unique circumstances so we can help you.”

The forum was organized by Stanbic Bank and Proprietors of Private Educational Institutions’ Association in Uganda’. Soon after schools reopened in January, Stanbic Bank announced the immediate availability of UGX60 billion in hugely discounted ‘booster financing’ to the education sector.

About 50 representatives of private schools attended. Juuko said, in times like these, ethos like trust, transparency, openness and integrity are key to growing businesses.

Under the discounted booster finance, schools are able to borrow up to UGX500 million in collateral-free (unsecured) loans. Parents can also access up to UGX250 million in unsecured loans processed digitally and dispersed within five minutes at zero processing fee. The bank further revealed that its decision to waive all 2021 unpaid accumulated interest on loans to privately owned schools is a proactive initiative based on the understanding that schools have not been earning and that they need to be supported to regain their ability to settle their liabilities.

Stanbic Bank has reduced the cost of borrowing to between 16%-19% for most of its customers mainly to support their economic recovery.  Juuko also said, the bank has in place insurance policies and urged school proprietors to consider taking them up to mitigate future business risks. She also urged private school owners to take keen interest in Bank of Uganda’s credit relief measures that are available for the private sector.

Bank of Uganda (BoU) announced a number of credit relief measures in November last year running up to 12 months to 30^the September, 2022. It said, supervised financial institutions are permitted to grant one restructuring to credit exposures in the education sector which is adversely affected by the pandemic. The BoU said, the restructuring maybe in the form of a repayment moratorium, extension of tenure, reduction of principle loan repayment installment, reduction of applicable interest rate or a combination of all the above.

Tumubweine Twinemanzi, the Executive Director Supervision at BoU clarified on these measures. He said, in the event of any restructuring being granted, it will not be treated as an adverse change in the credit risk profile of the borrower for reporting to the Credit Reference Bureau. Nor will it affect the credit classification status or lead to a downgrade of such a credit facility for the duration of the credit relief measures.

He said, any loan granted relief shall maintain the same loan classification status over the 12 months to 30^th September, 2022. Twinemanzi requested financial institutions to be transparent and for customers to understand the terms of borrowing in line with these credit measures. He said, “Bank of Uganda stands ready to even review these guidelines if there is need. If your bank is not helpful, look for one that understands you as a customer. Also take time and educate yourselves about financial services.”

Going forward, Twinemanzi said, the government should consider prioritizing key sectors like education by putting in place a special fund to support their recovery from covid-19 hit and any other future calamities. “It is also important for banks and borrowers to embrace negotiations in loans management and restructuring,” he said.

Mike Kironde, the National Chairperson for Proprietors of Private Education Institutions Association in Uganda, thanked Stanbic Bank for organizing the forum through which ideas for smooth re-opening of schools would be shared. He said private schools play an important role in growing Uganda’s economy through jobs and related opportunities.

Kironde said, 65 pc of students belong to private schools and the latter employs 800,000 workers, of which 500,000 are teachers and 300,000 are non-teaching staff. “We have learned the hard way on how to do things. It is important that we spend on necessities,” he said.

He said, they have learnt to do business depending on the need and also thought of the idea of having reserves to support their activities during tough times. Kironde welcomed the idea of loan restructuring and the entire credit relief measures, saying it would help his members to reorganize their operational plans and stabilize as time goes on. He also asked Stanbic to take lead in offering financial literacy programmes to schools to keep them alive in tough times.

Collectively, privately owned schools and teachers, owe financial institutions slightly over UGX1.5 trillion in loans, with nearly UGX500 billion in accumulated interest alone. Uganda’s education sector is over 28,000 schools’ strong of which 80% are privately owned. It has approximately 16 million students and contributes about five percent to the country’s GDP.

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The Consortium of partners includes Stanbic Bank Uganda,  aBi Finance, the Economic Policy Research Centre (EPRC), Stanbic Properties Limited, and the Petroleum Authority of Uganda (PAU), the government agency that monitors and regulates the exploration, development, production, together with refining, transmission, and storage of petroleum in Uganda.

Emma Mugisha, the Stanbic Bank Executive Director said: “The signing of these agreements today couldn’t have come at a better time when government has just announced the Final Investment Decision on EACOP, opening the stage to opportunities worth billions of shillings. However, while all this is exciting news, it is important for local investors to be guided by research to help them make informed investment decisions. We are therefore pleased to be part of the solution and looking forward to helping Ugandans get the most of agriculture sector opportunities linked to the oil and gas economy.”

In one of the agreements, Stanbic Bank, aBi Finance, and PAU have agreed to collectively invest over UGX350 million to contract the services of EPRC “to define the linkages between agriculture and the oil and sector.

Mona Muguma-Ssebuliba, Chief Executive, aBi Finance said, “We are always supportive of initiatives that offer improved profitability, income and employment of Ugandan farmers and development of agribusinesses. When finished, the study will hopefully guide in future as to where aBi can make interventions that create the most positive impact for farmers in the vicinity of the oilfields.”

The study is expected to estimate the current and future demand and supply, assess status of standards, as well as active agricultural enterprises with potential to harness capacity to ably absorb emerging opportunities linked to the oil and gas economy which is expected to drive demand as the country enters production phase.

Ernest Rubondo, PAU Executive Director said, “Once completed, the study will be a very useful item in our policy tool-kit. As the regulator, we are always looking out for ideas that ensure greater local participation in the oil and gas sector. The supply of foodstuffs is one area where local farmers can become key players. However, this will require them to commercialize their farming methods, particularly by getting together and forming partnerships amongst themselves to benefit from economies of scale that enable higher output to meet the expected high demand.”

Based at Makerere University, EPRC is think-tank specializing in economics and development policy-oriented research and analysis aimed at supporting the formulation, implementation, monitoring, and evaluation of government policies.

In the second agreement, PAU has contracted Stanbic Properties Uganda Limited to ‘undertake a baseline study and project the future supply and demand of housing, cost and availability of land, cost and availability of building materials and housing preferences and delivery systems in the Albertine region.’

Stanbic Properties will also analyze the strengths, opportunities, weaknesses, risks, and threats in the housing market in the Albertine region and the identified EACOP districts, to establish the current feasible incentives along the housing value chain provided by government, non- government entities and the private sector which can complement investment.

“We are excited to embark on this important work on behalf of PAU. Our scope is clear—-study the real estate market and analyze all real estate segments (Residential, Office, Retail, Hotel and Industrial) in the 10 EACOP districts; these include Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Kyotera and Rakai as well as the neighboring districts of Masindi and Pakwach. The study will focus on the following areas,” Spencer Sabiiti , the Stanbic Properties Chief Executive said.

In the agreement, Stanbic Properties has also committed to undertaking studies to help identify areas with land available for housing development and the modalities of land acquisition by investors; and to develop a housing strategy action plan with costed measures, an implementation road map, and an implementation process map for the realization of identified opportunities.

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Under the terms of the partnership, NHCCL will provide land to develop affordable modern housing while Stanbic Properties will handle the direct sales and marketing with Stanbic Bank playing the role of financing partner. However no financial details were disclosed.

The official signing was witnessed by finance minister, Matia Kasaija at the ministry headquarters in Kampala. Anne Juuko, the Stanbic Bank Uganda Chief Executive said the bank, which is Uganda’s largest commercial lender, agrees with experts that, ‘while housing is well articulated in Target 11 of the Sustainable Development Goals (SDGs), it is a key component of sustainable development across all of the goals.’

She said, “We agree with the view that good housing drives access to basic services, contributes towards inclusive growth, and supports the development of a sustainable future, with a direct impact on the factors that contribute or mediate the effects of climate change; through this partnership, Stanbic Bank hopes to play its role towards the desired goal.”

Both Stanbic Bank and Stanbic Properties are subsidiaries of Stanbic Uganda Holdings Limited (SUHL), under the Standard Bank Group, Africa’s largest commercial bank. The Uganda government holds a majority stake in NHCCL.

Under the partnership, at least 1,400 tailor-made housing units will be developed, targeting Stanbic Bank employees after which offers will be extended to other corporate entities, public and the business community.

Engineer Kenneth Kaijuka, the NHCCL Chief Executive Officer said while undertaking the company mandate of developing affordable housing, issues of inadequate funding for projects as well as insufficient and untimely project off-taking framework has hindered delivery on this mandate.

He said, “Informed by the great strengths and our respective mandates each party represents, we have agreed to join hands under this tripartite framework to champion mutually beneficial collaborative initiatives that will address the above underlying challenges ultimately increasing housing stock, market the existing NHCC stock, customize housing products for bank staff and other clients, under tailor made schemes,” he said.

Spencer Sabiiti, the Chief Executive of Stanbic Properties Uganda Limited said, “Our mission is to get all actors in the property space to collaborate to ultimately increase the supply of authentically affordable housing, but also ease access to affordable long-term finance; this partnership starts us off in the right direction as we have both a developer and financier, both leaders in their respective spaces.”

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The donation is part of anongoing campaign in which the bank and several other organisations and well-wishers, have been supporting efforts to improve maternal health in Uganda under the theme ‘Every Mother Counts’.

Speaking during the handover event at the hospital today, Barbara Kasekende, the Stanbic Bank Corporate Social Investment Manager said, increasing the maternal survival rate is an important goal for the bank and every member of the community because it enhances social-economic transformation. “At Stanbic Bank, we believe mothers are nation builders and any support given to them would go a long way in building Uganda,” Kasekende said.

Kasekende said, donations of this nature contribute to the new target of the Sustainable Development Goal 3 (SDG3) – to accelerate the decline of maternal mortality by 2030. The latest donation is in addition to the UGX24 million made in July this year. The bank also partnered with Rotary International in September this year to push for the same cause.

The bank chose Kawempe Referral Hospital as a focal beginning point because it continues to register the highest patient numbers and mortality deaths. It receives over 4000 pregnant women a month from all parts of the country and delivers an average of 100 babies daily.

However, the hospital also reported the highest number of maternal deaths at 116, followed by Hoima (46); Masaka (38); Fort Portal (37) and Mbale RRH (33) according to the 2019/2020 Annual Health Sector Performance Report.

Dr.Lawrence Kazibwe, the acting Deputy Doctor and Clinical Head at Kawempe Hospital said, some of the leading causes of maternal deaths in Uganda are haemorrhage, high blood pressure and infections that are largely preventable if detected early enough.

“We are sure that this contribution will provide clean and safe delivery to our mothers at Kawempe Referral Hospital especially at this critical time when the country awaits full reopening,” Dr.Kazibwe said.

According to the World Health Organization, while motherhood is considered a fulfilling natural experience, a high percentage of women face several challenges that cause them to suffer and, in some cases, to die. The maternal mortality rate in Uganda remains relatively high at 336 deaths per 100,000 live births, according to a 2020 UNICEF report.

Dr.Kazibwe said maternal deaths create an urgent need for various stakeholders to collaborate and find quick solutions to ensure that all pregnant mothers have access to quality and affordable healthcare services.

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With interest rates starting from as low as 16% (subject to terms and conditions), customers are being given long repayment-periods of up to 72 months for unsecured advances to salary earners ranging from 10 years for land financing and up to 20 years for home purchases.

“After a tough year that saw many Ugandans spend their savings as they stayed home due to Covid-19, our offer is to really facilitate our customers to celebrate life as they prepare for opportunities in the coming year,” Sam Mwogeza, the Head Consumer and High Net Worth at Stanbic Bank said.

According to bank officials the bank’s rich festive menu offers exciting asset financing deals that can be quickly applied for and granted within minutes, at hugely discounted rates through the bank’s digital and mobile banking platforms as well as branches across the country.

These include land, home improvement or purchase, vehicle and other assets’ financing deals that are available to both current customers with a loan and those without. Customers who do not have pending loan offers, the normal loan process will be followed; this also applies for secured loans such as vehicle, land and home loans. The festive menu also allows top-ups for customers who are eligible based on the time of need for the facility.

In addition, customers will also be excited to note that the bank has struck out what is usually a document-heavy process and replaced it with easy user-friendly digital processes that allows them to enjoy fruits of the lender’s ongoing investment in ‘convenient banking channels.’

With convenient banking channels, the bank is able to serve customers wherever they might be ‘locked down’ as existing salaried and self-employed Stanbic customers can simply dial *290# and select option 8 to access the credit offers. However, the same offer can be accessed through all Stanbic Bank Uganda branches across the country and non-customers can also be assisted to open accounts with the bank.

Asked how the bank is able to receive and approve loan applications within minutes, Mwogeza said all existing salaried and self-employed customers have been customers have been pre-approved for various credit segments based on different lending parameters.

For non-customers, a quick self-registration online process is available to get them a fully functional bank account with Stanbic Bank after which they gradually become eligible.

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It is premised on the first letters of the word ‘love’ that is, Let’s team up (to work towards our better future); Open our minds (to greater possibilities); Value and share knowledge (on opportunities) and Empathize (with our customers). The week’s celebrations started on Monday and will run through to Friday, October 8.

Sonia Karamagi, Customer Experience Manager at Stanbic Bank said love is a good thing and that they are not changing the sense of the word. “What we are changing is how the bank applies ‘love’ to our customers, both external and internal. What better time to do this than during this customer service month.”

The International Customer Service Week offers brands an opportunity to outdo themselves in giving their customers a special treat in appreciation for their loyalty. As part of the campaign, the bank will hold several activities throughout the month of October including customer recognition, community outreach, customer experience and knowledge sharing.

“This month we will support several communities across the country through our employee community initiatives as well as provide support towards maternal health in partnership with Kawempe National Referral Hospital. Stanbic Bank will also run a walkathon activity that will encourage individuals to contribute to the cause while getting physically fit in the process. The campaign targets customers, employees and the wider community by highlighting a great customer service experience; not just this week or month, but moving forward,” Karamagi said.

She said this is a new culture the bank is nurturing and hopes to see customers feeling it whenever they interact with different Stanbic services. Karamagi said throughout the L.O.V.E campaign, they will encourage customers to participate by sharing their experiences with the bank to push the service provision to greater heights.

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Bancassurance (life assurance and other insurance products sold through banking institutions), contributed 8.2 pc of the industry’s total business with Stanbic Bank Uganda taking up a fifth of the market.

In the period April-June 2021 (Q2), bancassurance recorded a 54 pc growth led by Stanbic Bank which consolidated its market-share to 21.2 pc from 19.1 between January and March.

In 2020, the bancassurance sector produced UGX32 bn (full year volume) compared to UGX49.3 bn (almost $14 million) in the first half of 2021 which represents a 54.24 pc growth, according to the latest report published by the regulator.

Stanbic Bank attracted UGX10.4 bn in total gross premiums for the period April-June 2021. Absa Uganda came in second with UGX9.6 bn; Centernary (UGX8.7 bn); Post Bank (UGX3.8 bn); dfcu Bank (UGX3 bn); Orient Bank (UGX2.7 bn) and Housing Finance bank (UGX2.3 bn).

The bank, which was one of the first to acquire a bancassurance license, also out-earned its competitors, raking in UGX1.91 bn representing 24.4 pc of all bancassurance commissions paid to banks for the period under review. Stanbic also dominated bancassurance business for Non-life (Genera linsurance) product lines generating UGX3.5 bn which is equivalent to 28 pc of total industry volumes.

Looking ahead, Singh Dogo, Stanbic Bank Uganda’s Head of Bancassurance said focus will be on gaining market leadership for the Life insurance business where the lender enjoys 12 pc market share equivalent to UGX6.9 bn but two percentage points behind the top spot holder.

He said the bank’s good performance in the second quarter was driven by growth in general insurance and credit life business as well as short-term insurance covers for clients. “These are stable, and our projection is that they will continue to grow on account of their unique positioning to address customer coverage needs coupled with our assured fast claims service,” he said.

Dogo said Stanbic’s bancassurance efforts will continue to focus on expanding dominance in individual life products with value propositions on essential services such as education, medical, and life insurance policies.

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Students will collectively plant 110,000 trees in their respective school spaces which will ultimately supplement the children’s nutrition needs while also conserving the environment. Employees of the three companies will also plant another 40,000 trees before the end of the 2021.

Speaking shortly penning the agreemnet, Anne Juuko, Stanbic Uganda Chief Executive Officer said, “We welcome this partnership with Total Uganda and Roofings, together, we shall more than triple our efforts in this long-term struggle to save our environment.”

She said the campaign also aims at contributing towards realizing points 13 and 15 of the UN Sustainable Development Goals (SDGs), which respectively call for concerted efforts to mitigate climate change and sustainable life on land. “Strategic Partnerships, as per SDG 17, are vital if we are to realize all the goals before 2030 deadline. We hope that Stanbic’s partnership with Total Uganda and Roofings will inspire many more local corporate partnerships to support Uganda’s Goals’ Agenda,” Juuko said.

According to data from Uganda’s Environment Ministry and National Forestry Authority, the country loses on average, 122,000 ha/year of forest cover, annually. By choosing schools as touch points, the partners believe they will help influence the young generation to engage in activities that are geared towards conserving the environment.

Daniel Mayieka, the Managing Director of Total Uganda said, the partnership reinforces the Group’s new climate ambition aimed at getting a net-zero by 2050 together with society, a goal aligned with the organization’s purpose to provide energy that is more reliable, affordable, and clean to as many people as possible.

He said, “Total Uganda Foundation has made forest preservation and restoration a key focus of its work and is supporting projects to preserve and restore forests. We have therefore, decided to strategically partner with Stanbic Bank and Roofings for this cause and to improve the environment in communities and schools as we drive the tree planting culture in Uganda as well as becoming carbon neutral over time.”

Roofings Group Executive Director Nashila Lalani said the partnership helps reinforce the Group’s re-wilding and Ubuntu efforts that deeply embedded within its Corporate Social Investment programme implemented through the Forever Forestry Initiative. The partnership gives Roofings an opportunity to tap into the mindsets of the next generations in aligning the country towards sustainable co-existence with nature.

“We are therefore facilitating the Stanbic National Schools Championship program in regreening hundreds of schools which in turn provides environmental stability for the generations that will come after us,” Lalani said.

The majority of the participating schools have ample land together with the student population that will take care of the trees as they grow into mature forests. Since 2020, Stanbic Bank has supported communities to plant over 25,000 trees through its annual National Schools Championship (NSC) a programme implemented as part of the bank’s sustainability agenda. The bank is also part of another multi-partner media campaign dubbed ‘Taasa Obutonde‘.

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Sam Mwogeza, the Stanbic Bank Uganda’s Head of Consumer and High Net Worth Banking announced the financial services package that includes access to credit at preferential rates, unique insurance and investment offers.

“This is a customized ‘lawyers’ financial services pack’ from Stanbic Bank to everyone in the legal fraternity; offering has something for everyone including interns, clerks, advocates, magistrates, senior legal advisors and judges,”Mwogeza said.

Some of the special services that will be offered under the new proposition, include financial coaching, zero fee visa cards, study loans for Law Development Centre exams and other expenses for the interns and court clerks, education financing, construction and land loans, health care for elderly parents and networking opportunities for the advocates of the high court to help them advance their careers.

He said, “All these services they can access through our “convenient banking channels” including online banking which enables fast, convenient and secure access to one’s account, online instant loans, construction mortgage, specialized savings and investments in fixed deposit, shares, T-bills and bonds

The special lawyers’ pack also offers support in financing international education and health plans, commercial property loans for senior partners, members of the judiciary and C-Suites Executives to build their own chambers to enhance their growth.

For magistrates and senior partners, the bank is offering equity release of up to UGX2.5 billion, vehicle loans of up UGX120 million repayable in five years together with insurance, home construction financing of up to UGX2.5 billion with a 20-year repayment plan and office set-up and running expenses overdraft of up-to UGX100 million each.

Mwogeza urged members of the legal fraternity to go online and conveniently open Stanbic Bank accounts to become eligible to benefit from the special offers.

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Ramadan, which is the ninth month of the Islamic calendar, is observed by Muslims worldwide as a period of fasting, spiritual reflection of faith, increased devotion to prayer and worship, almsgiving and pilgrimage to commemorate the first revelation of the Quran to Muhammad.

As part of their Corporate Social Responsibility, Stanbic Bank will be donating food stuff items inform of sugar, rice, posho and wheat flour, cooking oil, salt and soap worth UGX 35 million distributed to different mosques across the country. The bank with the support from Salam Charity Foundation will start the donation in Kampala at Kibuli mosque and UMSC – Gadhafi then proceed to Iganga, Mbale, Masaka, Mbarara, Masindi, Fort portal and finish with Arua.

While receiving the donation at the Office of the Supreme Mufti, Kibuli Sheikh Yakuba Luwalila,said Ramadan is a reminder for the Muslim to seek guidance, forgiveness, devotion and deep connection with Allah. While fasting might be the most commonly known aspect of Ramadan, charity is also a key part of the month, with the practice of Zakat or giving of alms to the poor and needy playing an enhanced role for Muslims.

He added,“During Ramadan, when you give, you make a difference in someone’s life, society, and nation and as they giver receive seven times more rewards for every good deed done. That is why, I want to encourage each and everyone to selflessly give, not just for the good the charity does for the receiver, but for the spiritual benefit it provides the giver.”

Ali Lwanga, the Regional Manager Stanbic Bank Uganda, encouraged the Muslims to observe all five pillars of Ramadan and thanked them for the immeasurable support given to the bank.

Lwanga said, “Ramadan provides institutions like Stanbic Bank with the opportunity to give back to the Muslim clients we serve, demonstrate a spirit of brotherhood, show empathy and increase the act of charitable giving.

Stanbic Bank continues to reaffirm its commitment to supporting and transforming the lives of people in the communities, they serve. Through the different Corporate Social Responsibility programs, the bank is able to focus on sustainable programmes that have a positive impact and make extraordinary efforts to uplift individuals and society.

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