EFC Uganda Limited (MD1) seals UGX 8 Billion Financing Deal.
EFC Uganda Limited (MDI) has sealed a financing deal worth UGX 8 Billion with Oikocredit Uganda. Oikocredit is one of the world’s largest sources of private funding to the microfinance sector. These funds are planned to go towards financing SMEs.
Uganda‘s SMEs sector which is a primary driver in Uganda’s journey to full economic growth and independence is growing tremendously. EFC Uganda is working towards becoming the leading SMEs financial institution by 2025. It is this vision that constantly propels us to find innovative solutions to address challenges facing SMEs. And, creating easy access to financing is fundamental in realizing this vision.
This financing deal is concluded at a critical time, a time when SMEs are struggling to recover from the effects of the Covid – 19 pandemic. SMEs face a number of challenges and the most reported is the limited access to financing. Small Enterprises employ between 5 and 49 and have total assets between UGX 10 million and not exceeding 100 million. The Medium Enterprises therefore employs between 50 and 100 with total assets more than 100 million but not exceeding 360 million. Enterprises that meet these requirements will be able to benefit from this fund.
In the recent, EFC Uganda has created different products to service SMEs better. In April of 2022 EFC Uganda designed and rolled out a campaign dubbed “SIMBULA LOANS NE EFC” this initiative is extending loans close to UGX 13.5 BN to Ugandans.
EFC Uganda is also part of the Small Business Recovery Fund, a partnership with Bank of Uganda where entrepreneurs can get loans of up to UGX 100 million at very low interest rates of not more than 10 %.
EFC Uganda is committed to contributing to the development of Uganda’s private sector by providing increased access to financial services for the underserved Micro, Small and Medium Entrepreneurs (MSMEs) market segment.