The African Export-Import Bank (Afreximbank) is to launch a country assistance program to support and strengthen the Ugandan economy, Dr. Benedict Oramah, Executive Vice President in charge of Business Development and Corporate Banking at Afreximbank, has announced.
Afreximbank’s country assistance programmes make available financing to assist concerned countries in the areas of growth and development of exports, rehabilitation and modernisation of trade related infrastructure and funding of essential imports.
In an address at a workshop organized in Kampala by the Bank as part of a roadshow to showcase its services, Dr. Oramah said that the exact size of the Uganda programme was being worked out in consultation with the country’s central bank.
“We have also agreed with the Bank of Uganda to introduce a refinance and rediscounting window to support local banks willing to finance non-traditional exports and value-added projects,” continued the Executive Vice President.
According to him, Afreximbank is ready to support Ugandan entrepreneurs interested in entering into export manufacturing, especially to add value to coffee, tea, cotton and other commodities. The Bank would also work with SMEs in supply chains that required financing and with those engaged in importing or creating infrastructure goods, including renewable energy projects.
Afreximbank’s Construction/Tourism-Linked Relay (ConTour) Facility was available to investors in the tourism sector and the Bank would engage with relevant government agencies and commercial banks to create an oil services financing programme similar to the ones that helped expand indigenous participation in the oil and mining sectors in Nigeria, Ghana, Zambia and Angola, said Dr. Oramah.
Maria Kiwanuka, Minister of Finance, Planning and Economic Development of Uganda, urged Ugandan businesses to take advantage of the facilities offered by Afreximbank, pledging that the government would provide the enabling environment for private financial institutions to widen and deepen the scope of their services.
According to Ms. Kiwanuka, the government is in the process of approving amendments to the Financial Institutions Act to provide for banking according to Islamic principles and to regulate mobile banking, bank assurance and agent banking.
Also speaking, the Governor of the Bank of Uganda, Prof. Emmanuel Tumusiime-Mutebile, said that in order to increase loan amounts from Afreximbank to Ugandan businesses, the commercial banks needed to enter into collaborative relationships with Afreximbank.
“The essence of this relationship will be to utilize the knowledge of Ugandan commercial banks regarding the credit worthiness of local SMEs, coupled with the finances of Afreximbank, to extend the latter’s footprint in Uganda’s medium to long term credit market,” explained the Governor.
In his own contribution, Chinedu Ikwudinma, Chairman of the Uganda Bankers Association, appealed for Afreximbank support for Ugandan banks through partnerships, particularly the export sector on a strategic level, and through lobbying government to drive policy implementation and build capacity in providing infrastructure to support export trade.
Dr. Benedict Oramah, Afreximbank Executive Vice President for Business Development and Corporate Banking, (left) receives book gift from Prof. Emmanuel Tumusiime-Mutebile, Governor, Bank of Uganda.
Maria Kiwanuka, Minister of Finance, Planning and Economic Development of Uganda (seating 1st row), flanked by Dr. Benedict Oramah, Afreximbank Executive Vice President, on the left and Tumusiime-Mutebile, Governor, Bank of Uganda, in group photograph with some roadshow participants.