KAMPALA, Uganda — Finance Trust Bank and the Initiative for I&P Entrepreneurs & Development launched a loan guarantee program Thursday to expand credit for sustainable enterprises and women-led businesses in Uganda.
The partnership introduces a dedicated mechanism to reduce collateral requirements, allowing the bank to lend to sectors often viewed as high-risk. The initiative targets 40 green ventures in its first year, focusing on renewable energy, sustainable agriculture, waste management and eco-tourism.
Percy Lubega, head of marketing at Finance Trust Bank, said the de-risking aspect of the agreement allows the bank to reach customers who lack formal or sufficient collateral.
This collaboration provides a guarantee that enables us to venture into business sectors typically considered risky, Lubega said. This de-risking aspect allows us to extend more credit to these enterprises, further supporting our mission to fight poverty.
The program offers loans averaging 93 million shillings ($24,000) with interest rates below 20%. Other features include a 12-month tenure, a grace period of up to six months and a minimum collateral requirement of approximately 50%.
The initiative is part of the I&P Women in Entrepreneurship for Africa program, which also operates in Senegal, Togo and Cameroon.
Supporting women in the green sector, especially in sustainable agriculture, is at the core of Finance Trust Bank’s strategy, said Barbara Adolehoume, program manager for the WFEA program. Through the program, we aim to lower the barriers women face in meeting the criteria to secure these loans.
The agreement strengthens a relationship that began in 2005 when Investisseurs & Partenaires first became a shareholder in the bank. Raphaël Dumont, director of acceleration programs at I&P, said the organization remains a shareholder through its IPAE fund.
I&P has supported more than 300 companies in 25 African countries over the last two decades, managing nearly 500 million euros in investments. The current partnership will be implemented through IETP, the nonprofit arm of the organization.
Finance Trust Bank will oversee loan appraisal and disbursement, while I&P will validate that applicants meet the criteria for being women-led and environmentally compliant. Applications will be processed in cohorts over a timeline of four to eight weeks.
