EIB Global and Housing Finance Bank Forge €50 Million Partnership to Boost Women-Led Businesses in Uganda

In a significant move to empower and uplift women entrepreneurs in Uganda, EIB Global, a part of the European Investment Bank, and Housing Finance Bank (HFB) have announced a €50 million investment partnership. This collaboration aims to provide support to private sector entities, particularly small and medium-sized enterprises (SMEs) in Uganda.

The operation emphasizes a special gender focus, intending to enhance women’s access to finance. At least half of the investment funds will be directed towards businesses owned or led by women, or those employing and serving women. This initiative is expected to generate a higher developmental impact, especially for women in micro, small, and medium enterprises operating in critical sectors like agriculture, health, manufacturing, transport, trade, education, renewable energy, and clean water.

Aligned with the priorities of Uganda and the European Union for the region, the project strives to promote inclusive growth and sustainable economic development by supporting women. This initiative reflects the core principles of the Uganda Vision for 2040, aiming to provide improved opportunities for women and reduce gender inequalities.

The European Investment Bank was an early signatory to the 2X Challenge Criteria, emphasizing the commitment to providing significant support to businesses promoting gender equality. In collaboration with Housing Finance Bank, the 30% threshold of loans allocated to businesses has been raised to 50%, demonstrating a strong dedication to enhancing the socio-economic conditions of women.

Edward Claessen, Head of the Regional Hub for East Africa at EIB, highlighted the partnership’s significance, stating, “Signing this partnership ahead of International Women’s Day celebrations in Uganda re-emphasizes our continued strong support in the way of entrepreneurship and business development for all entrepreneurs, more so women. We are committed to supporting projects and investments that empower women worldwide and address the systemic gender inequality in accessing capital.”

Housing Finance Bank CEO, Michael Mugabi, emphasized the bank’s commitment to strategic partnerships, especially those contributing to the socio-economic development of Uganda. The collaboration with EIB aligns with the bank’s strategic plan for 2023-2027, focusing on empowering micro, small, and medium enterprises owned by women. The funds and technical support will enhance the capacity of women-led businesses and MSMEs in general.

This partnership builds on previous cooperation between Housing Finance Bank and EIB, with a €13 million investment signed in 2014 under the East and Central Africa Private Enterprise Finance Facility project.

In addition to supporting women-led businesses, the EIB’s SheInvest initiative, launched in 2019, is expected to benefit entrepreneurs in Uganda. This initiative aims to mobilize €2 billion of gender-responsive investment across Africa, focusing on empowering female-led businesses.

Recognizing the importance of strong financial intermediaries, EIB Global is leveraging its experience and partnership with various financial institutions to enhance financial inclusiveness. This collaborative effort is expected to provide a positive impact on the lives of rural populations in Uganda, contributing to narrowing the gender gap and fostering sustainable development.

The new funds will be allocated over the next few years, creating opportunities for skilled and unskilled jobs for local communities during construction and beyond.