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Proparco and dfcu Bank join forces to support SMEs in Uganda
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• On the occasion of the Africa Forward Summit organised by France and Kenya in Nairobi on 11–12 May, Proparco, France’s development finance institution, and dfcu Bank signed a Letter of Intent for a proposed €30 million senior loan dedicated to financing Ugandan small and medium-sized enterprises (SMEs).
• This new operation further strengthens the long-standing partnership between Proparco and dfcu, which has already benefited from five Proparco credit lines since 2005.
• The proposed facility will support dfcu’s strategy to expand access to long-term financing for Ugandan SMEs, including women-led businesses and enterprises operating in key sectors of the economy.
Founded in 1964, dfcu Bank is one of Uganda’s leading commercial banks and plays a key role in financing the country’s private sector.
The bank operates a network of 56 branches across Uganda and serves both retail and corporate clients, with a strong focus on SMEs and key sectors such as agriculture, manufacturing, trade, education, healthcare and infrastructure.
SME financing and financial inclusion are at the core of dfcu’s strategy. In particular, its “Women in Business” programme, launched 19 years ago, provides tailored financing and capacity-building support to women entrepreneurs across the country.
A long-term financing facility dedicated to Ugandan SMEs
The proposed €30 million senior loan will provide dfcu with long-term funding to expand its SME lending activities in local and foreign currency.
This financing is intended to support businesses that remain structurally underfinanced despite playing a central role in Uganda’s economy and job creation.
The operation will notably contribute to:
• strengthening access to long-term financing for SMEs;
• supporting women entrepreneurs through dfcu’s longstanding “Women in Business” programme;
• financing key sectors including agriculture, manufacturing and trade;
• fostering financial inclusion through digital financial services and rural outreach.
A renewed partnership supporting DFCU’s transformation trajectory
Djalal Khimdjee, Deputy Chief Executive Officer of Proparco, declared: “Through this new proposed financing, Proparco is pleased to renew its longstanding partnership with dfcu Bank and support the development of Ugandan SMEs, which are essential drivers of employment, innovation and inclusive growth. We are particularly encouraged by dfcu’s strong commitment to women entrepreneurship and financial inclusion.”
Charles Mudiwa, Chief Executive Officer of dfcu Bank, stated: “This partnership with Proparco is a strong endorsement of dfcu’s commitment to expand access to long-term finance for Ugandan SMEs. The proposed facility will enable us to deepen our support for entrepreneurs across key sectors of the economy, including women-led businesses, helping them invest, grow and create jobs.”