KCB Bank Uganda has signed a landmark Memorandum of Understanding (MOU) with Uganda Manufacturers Association (UMA), in an effort aimed at boosting the production of goods and easing the operations of manufacturers in Uganda, through extending favourable financial products and terms.
The MOU will ensure that members access capital expenditure including asset backed financing to purchase
and service equipment, project financing for expansion, working capital financing like overdrafts, import loans for raw material purchases, contract finance to execute contracts and invoice discounting to bridge delayed payment gaps, among other services.
“We are excited to further expand our partnership network to the vibrant manufacturing sector of Uganda and I am happy to note that this partnership aligns with KCB’s vision of being the preferred financial solutions provider in Africa with a global reach. We believe by partnering with Ugandan manufacturers that are looking to
market their products locally and abroad, we will enable sustainable development,”Edgar Byamah, KCB Bank Managing Director.
KCB Bank Trade finance manager, Mary Mukasa Babirye underscored the rationale behind the MOU.
“The MOU with Uganda Manufacturers Association solidifies the commitment to fostering cooperation between the two entities. Under this strategic partnership, KCB Bank Uganda will extend affordable, convenient, and tailored financing facilities to UMA members. These facilities are designed to support the growth and development of the manufacturing sector in Uganda.”
Deo J.B Kayemba, the Uganda Manufacturers Association board chairman hailed the MOU.
“The third strategic goal of UMA focuses on enhancing partnerships. In line with this objective, UMA is actively working to strengthen its collaboration with institutions such as KCB. The primary aim is to optimize benefits for
our members. This includes securing negotiated interest rates and ensuring preferential treatment from the bank and training on financial literacy to hand-hold our SMEs. KCB is a regional Bank and we are happy to leverage your regional presence to grow our businesses as we enter the Africa, Continental Free Trade Area (AfCFTA),” Kayemba said.
According to a 2022 report by UMA , the manufacturing sector annually contributes 18.5% to the country’s GDP, 23% tax to Uganda’s total tax income and has created 1.61 million jobs aligned with manufacturing activities.
