EIB and Centenary Bank Expand Finance for Uganda’s Small Businesses

The financing initiative has extended support to refugees living in Uganda, including people from the Democratic Republic of Congo and South Sudan.

More than 24,000 micro-enterprises across Uganda have received financing during the first year of a major partnership between EIB Global, the development arm of the European Investment Bank Group, and Centenary Bank. The initiative is helping small businesses gain access to funding, with women entrepreneurs and rural enterprises receiving the largest share of support.

The partnership, launched in 2024, is expected to provide €100 million (about UGX 428 billion) in financing over seven years. Under the agreement, EIB Global has extended a €50 million credit line to Centenary Bank, which is matching the amount to increase lending to Uganda's private sector.

Women and Rural Businesses Receive Strong Support

The first annual report shows the program has already exceeded several of its key targets. Women accounted for more than 60% of loan recipients, going beyond the original goal of 50%. Rural businesses represented 75% of all financed projects, well above the planned 60%, showing the initiative is reaching communities where access to credit has often been limited.

Trading businesses received half of the financing, while agriculture accounted for nearly 40%, reflecting the important role both sectors play in Uganda's economy and employment.

EIB Vice-President Marko Primorac said the funding is helping remove barriers to finance for women and rural communities while supporting private-sector growth and strengthening Uganda's economy.

Financing Helps Businesses Grow

The credit facility is the largest microfinance loan EIB Global has provided in any country across the African, Caribbean and Pacific regions. It focuses on micro-enterprises employing fewer than ten full-time workers, giving small business owners access to capital that can help them expand operations, create jobs, and improve productivity.

The initiative also supports the European Union's Global Gateway strategy by encouraging investment in Uganda's agricultural value chains while promoting sustainable economic development and rural employment.

Alongside financing, the Africa Women Rising Initiative has helped Centenary Bank improve products designed for female entrepreneurs. Women business owners have also received training in financial literacy, record keeping, and business management, making it easier for them to strengthen and grow their enterprises.

Positive Results Beyond Lending

The partnership has already produced wider benefits for Centenary Bank and its customers. The bank increased its number of female clients by 21%, while non-performing loans among women borrowers declined by more than 8%, showing stronger repayment performance and healthier business growth.

Centenary Bank Managing Director and CEO Godfrey Byekwaso said the partnership has helped close local funding gaps while creating more opportunities for small businesses to become part of Uganda's formal financial system. He added that the collaboration is expected to generate even greater benefits for rural enterprises over the coming years.

Refugees Also Benefit from the Program

The financing initiative has extended support to refugees living in Uganda, including people from the Democratic Republic of Congo and South Sudan. During 2025, 200 loans were provided to refugee entrepreneurs to help them build sustainable livelihoods.

One beneficiary, Gissele Muganza, a refugee from the Democratic Republic of Congo, used a UGX 2 million loan to expand her children's clothing business while completing a bachelor's degree. Her monthly net profit has nearly doubled to UGX 1.1 million, giving her greater financial stability and opening new opportunities for her future.

The latest operation builds on a partnership between EIB Global and Centenary Bank that began in 2008. Since 1981, EIB Global has invested more than €388 million in Uganda to support private businesses, strengthen agriculture, and promote greater economic opportunities for women.