Business

UDB to give loans to women, youth and SMEs for sustainable growth

KAMPALA, UGANDA; The Uganda Development Bank (UDB), has unveiled new credit offers aimed at addressing the growth of three unique segments which include the youth, women, and small and medium-sized enterprises (SMEs).

Speaking during the official launch in Kampala, UDB managing director Patricia Ojangole said the specialized credit offerings will help enterprises to formalise as well as to professionalise their operations thereby ensuring sustainable businesses.

‘Our aim is to offer a definitive end-to-end solution for the growth and sustainability of business in the Youth, SME and Women-led business segments, which are the new engines of development in Uganda especially during this time when the country is looking towards the much-needed economic recovery,’ Ojangole said.

‘To address some of the critical constraints to access to credit, the Bank will implement more accommodative arrangements on cost of credit, collateral requirements, equity contributions, simplified loan processing and requirements,” she added.

Finance Minister Matia Kasaija said over 8.5 million people are employed in SMEs.

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“The SMEs compute an important segment in manufacturing and agriculture. The SMEs are the drivers of fostering growth and job creation,” he said.

The youth form 77% of Uganda’s population however 70% of the segment is unemployed while 65% of persons engaged in business are women.

Yet, 90% of the private sector are small businesses which contribute over 8o% of manufactured products and 75% of Gross Domestic Product (GDP).

The credit offerings from UDB include; the Kazi SME Loans, Youth Step-Up Loans and the Women Prosper Loans.

Source: NewVision


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