EIB Global and Housing Finance Bank Join Forces for €50 Million Investment in Uganda’s Private Sector, Focused on Women-Led Enterprises

EIB Global, a part of the European Investment Bank, has partnered with Housing Finance Bank (HFB) to inject €50 million into supporting SMEs, with a special emphasis on women-led or women-owned businesses.

This collaboration aims to enhance women’s access to finance by dedicating at least half of the investment funds to businesses owned or managed by women, creating a substantial developmental impact. The sectors expected to benefit include agriculture, health, manufacturing, transport, trade, education, renewable energy, and clean water.

The initiative aligns with both Ugandan and European Union priorities, focusing on fostering inclusive growth and sustainable economic development by empowering women. This endeavor is crucial for achieving the goals outlined in the Uganda Vision for 2040, aiming to reduce gender inequalities and propel the socio-economic transformation of the country.

Edward Claessen, Head of the Regional Hub for East Africa at EIB, expressed their commitment during the signing ceremony, emphasizing the importance of entrepreneurship and business development, particularly for women. The partnership is in line with the 2X Challenge Criteria, where EIB commits a significant portion of its support to businesses benefiting women directly.

Michael Mugabi, CEO of Housing Finance Bank, highlighted the strategic importance of partnerships to contribute to Uganda’s socio-economic development. He pointed out that supporting micro, small, and medium enterprises, especially those owned by women, aligns with the bank’s core objectives outlined in its 2023-2027 strategic plan.

This collaboration marks a continuation of the successful relationship between Housing Finance Bank and EIB, with a prior investment partnership of €13 million in 2014 under the East and Central Africa Private Enterprise Finance Facility project.

In addition to financial support, HFB customers enlisted in the project will benefit from technical assistance under the African Women Rising Initiative delivered by EIB. The European Investment Bank’s SheInvest initiative, launched in 2019, will further empower female-led businesses, aiming to mobilize €2 billion of gender-responsive investment across Africa.

Recognizing the importance of strong financial intermediaries, EIB Global continues to build on its experience and partnerships with banks, microfinance institutions, and equity funds. The collaboration focuses on promoting innovation and expanding financial inclusiveness, considering various non-banking financial institutions.

This joint effort is part of a broader commitment by EIB to provide financial support to private sector businesses in Uganda, having contributed over €346 million in the past. The accompanying technical assistance offered covers areas such as risk management, product development, environmental and social assessment, and financial literacy.