WSBI Ugandan member lends to farm entrepreneurs
Postbank Uganda launches Shs800 million loan scheme for farmers
BRUSSELS, 10 June 2014 – Postbank has partnered the Agri-Business Initiative (aBi) Trust to disburse loans that will support agri-business entrepreneurs in rural areas. ABi is a multi-stakeholder trust devoted to private sector agricultural business development.
Through the Uganda Rural Challenge Fund (URCF) project, aBi has contributed Shs813m to Postbank to implement its expansion of financial services such as group loans to smallholder farmer groups. The money is a grant to aBi from Germany's KfW Development Bank. According to the agreement signed recently, Postbank will contribute Shs130 million towards the project.
Stephen Mukweli, the Postbank managing director, said by signing the pact, his institution had shown commitment to deliver agricultural loans to serve the value chain from farmers to input dealers and agro-processors.
SME finance; Microcredit; Corporate Social Responsibility; Regional economy