KAMPALA – KCB Bank Uganda has signed a Memorandum of Understanding (MOU) with the Uganda Manufacturers Association (UMA). The agreement will now create avenues for the financing of local manufacturers, Edgar Byamah, KCB Bank Managing Director said at the signing in Kampala.
Byamah remained tightlipped on funds earmarked for this venture but said it seeks to boost the production of goods and ease the operations of manufacturers in Uganda, by extending favourable financial products and terms.
He told reporters that the MOU signed on Tuesday, February 27, 2024, 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 believe by partnering with Ugandan manufacturers that are looking to market their products locally and abroad, we will enable sustainable development,” Mr. Byamah said.
KCB Bank Trade Finance Manager, Mary Mukasa Babirye the MOU with the 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, Uganda Manufacturers Association Board Chairman said the third strategic goal of UMA focuses on enhancing partnerships.
“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 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).”
To scale up the delivery of digital solutions, deliver targeted offerings, acquaint new customers, and build overall business scale, KCBU has over the years sought out partnerships with other institutions like telecoms, and social and traditional organizations, among others.
According to The UMA Chairman’s Report 2022, 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.
