A Choose Africa Resilience guarantee to Stanbic Bank to support Ugandan MSMEs

The leader in Uganda’s banking sector, Stanbic Bank is a subsidiary of the South African Standard Bank Group, a longstanding partner of Proparco. Stanbic Bank offers a wide range of financial services for companies and households via an extensive network of 69 branches. Stanbic Bank already actively supports micro, small and medium-sized enterprises (MSMEs), which account for almost a quarter of its portfolio, and wants to increase its activity in this segment.

Stanbic Bank benefits from the Choose Africa Resilience guarantee, a component of the Choose Africa initiative, which specifically supports MSMEs affected by the economic crisis caused by Covid-19. With a total amount of EUR 8m (equivalent to UGX 32,055,032,960.00), the guarantee covers 80% of the new loans allocated to the most vulnerable local MSMEs by Stanbic Bank.

This guarantee is allowing Stanbic Bank to increase its activity for MSMEs in high-impact sectors. In a period of economic recovery, these loans specifically target the most affected companies and thereby contribute to increasing the resilience of the local economic fabric.