Bankers Association launches UGX 1 trillion regional export facility
- Regional Export Facility (REF) has an initial amount of UGX 1 Trillion as a package to support exporters from Uganda, to regenerate & grow export volumes to regional markets
- The facility is to be availed at a maximum interest rate of 12% per year for shillings and 6% per year in dollars with a tenure of between three (3) months to five (5) years.
Uganda Bankers Association has launched the regional export facility to the tune of 1 trillion shillings.
The aim is to de-risk export trade according to the chairperson, Sarah Arapta, who also happens to be the Chief Executive Officer of Citibank Uganda.
“This financial package is championed by member financial institutions, under the umbrella of UBA, through which the financial sector will support Uganda Exporters to regenerate and grow export volumes to regional markets of South Sudan, DRC, Kenya Tanzania, Burundi.
In July this year, the association facilitated a dialogue with manufacturers and traders during the annual banker’s conference to bridge financing gaps in the manufacturing/trade, tourism /hospitality, and agri-business sectors to catalyze economic recovery and growth post-2021.
Mr. Wilbrod Owor, the Executive Director Uganda Bankers’ Association said the facility was a specialized financing regime supported by a payment and settlement mechanism that will be availed at a maximum interest rate of 12% p.a for shillings and 6% p.a in dollars with a tenure of between three (3) months to five (5) years depending on purpose and structure of the facility.
Uganda has huge potential in manufacturing but also immense opportunity via regional trade and its catalytic role when viewed from the standpoint of its multiplier effects across the rich value chains that come from manufacturing and agriculture.
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