In efforts to revive the worst-hit sectors of the economy, Stanbic Bank Uganda has partnered with the United Nations and other funding agencies to create an enterprise fund that will provide low-cost financing informal sector businesses to enable them recover from the impact of the Covid-19 pandemic.
The Economic Enterprise Restart fund (EERF) is intended make available cheap funds to small and medium enterprises (SMEs), savings and credit cooperatives (SACCOs) as well as village savings and credit associations (VSLAs) to enhance their productivity, and provide both digital & technical support in capacity building and institutional development.
The EERF will drive financial inclusion through the digital banking process and build economic activity sustainability that will help create employment opportunities, increase consumption, and avert poverty in the rural and peri-urban areas.
Speaking during the launch at Sheraton Kampala Hotel, Stanbic Bank Chief Executive, Ms. Anna Juuko said, the fund has identified key individual, businesses and groups that were made financially vulnerable by the pandemic, who will receive low-cost finances from the bank to allow them to boost their business capital, increase daily income or cash flows and empower them to become financially stable.
“Our commitment to the Economic Enterprise Restart fund is an opportunity for a new type of partnership between the UN and a leading private sector institution-Stanbic to adapt and respond to the impact of COVID-19 on the most vulnerable sectors of the economy and the most likely segments of the population to be left behind. This is a recipe to finance Sustainable Development and I look forward to having other partners join us,” said UN Resident Coordinator, Rosa Malango.
“Through the Stanbic Business Incubator, we shall provide financial literacy for SMEs, SACCOs, VSLA’s and enterprises to enhance the development and sustainability of their businesses. This will be integrated them into the financial sector, ensure that they have access to mainstream banking channels and credit facility, get digital and capacity building training,” Ms. Juuko emphasized.