A new dawn has risen for Uganda’s agricultural sector. PostBank Uganda, soon to be rebranded as Pearl Bank, has signed a 13-year strategic partnership with Agence Française de Développement (AFD), unlocking a €16 million (Shs 64 billion) package to power sustainable, inclusive, and climate-smart agriculture.
The deal, formalized at the Bank’s Nansana Branch in Wakiso, comprises a €15 million concessional credit line and a €1 million technical assistance grant. It targets smallholder farmers, SACCOs, MSMEs, and especially women and youth-led agribusinesses, aiming to expand financial access, promote gender equality, and strengthen climate resilience in Uganda’s farming communities.
On the sidelines of the signing, Our Writer Emuk Benjamen held an exclusive interview with H.E Virginie Leroy, the French Ambassador to Uganda, on the significance of this partnership and the broader vision for French investments in Uganda. Emuk writes;
Your Excellency, PostBank Uganda (Pearl Bank) has just signed a 13-year strategic partnership with AFD. Is this part of France’s wider commitment to invest in Uganda?
Amb. Virginie Leroy: Absolutely. This partnership is a true testimony of the friendship and partnership between our countries. Just last week, we celebrated the first anniversary of the French Chamber of Commerce Uganda. Ugandan companies want to do business with French companies, and French companies are eager to do business here too. It is through such partnerships that we create jobs, generate wealth, improve livelihoods for Ugandans, and contribute to the country’s tenfold growth strategy.
Over the past three years, French companies have invested more than Shs8 trillion (approx. €2 billion) in Uganda, with a further Shs12 trillion (approx. €3 billion) committed for the next three years. Sectors of interest include energy, agriculture, urban development, water supply, and technology innovation. So yes, this partnership with Pearl Bank fits into the broader commitment of France to Uganda’s development.
Should we view this partnership as a short, medium, or long-term commitment?
Amb. Virginie Leroy: It is very much a long-term partnership. I am particularly happy to be back in Uganda because, during my earlier posting as AFD Country Director (2014–2019), I initiated discussions with PostBank. At that time, AFD was not able to provide a shilling-denominated credit facility. Now, the fact that AFD can lend in Ugandan shillings makes a huge difference.
Why? Because when a bank lends in foreign currency, there is always an exchange rate risk. By lending in shillings, AFD reduces that risk for PostBank, allowing the Bank to focus more on the purpose of lending, supporting farmers, SMEs, and rural communities rather than worrying about exchange rate management.
Why was PostBank chosen as the partner bank for this facility?
Amb. Virginie Leroy: We chose PostBank, soon to be Pearl Bank, because its mission and network align perfectly with the goals of this facility. The credit line is designed to support small entrepreneurs, women, and young people in rural areas. With its 57 branches across Uganda, PostBank has the reach and presence needed to ensure that these funds benefit the intended groups.
This is about inclusivity, making sure that underserved farmers, women-led cooperatives, and youth-owned agribusinesses can access affordable financing to participate in the agricultural value chain. PostBank is uniquely positioned to deliver that impact.
Finally, what broader message does this partnership send about France’s relationship with Uganda?
Amb. Virginie Leroy: It sends a very strong signal that France is not only a trade partner but also a development partner for Uganda. We are here for the long haul, working with Ugandan institutions, farmers, and entrepreneurs to build a climate-resilient, inclusive, and prosperous agricultural sector.
Through this partnership, France is directly investing in the future of Ugandan farmers, cooperatives, and rural entrepreneurs, the very people who are the backbone of the economy. That, to me, is the real meaning of friendship and partnership between our countries.
The climate change agenda, For Marc Trouyet, AFD’s Country Director in Uganda, the deal is as much about resilience as it is about credit. He applauded the partnership, but also urged Pearl Bank to take a more proactive role with its clients in light of changing climate realities.
“The Agence Française de Développement is proud to launch a long-term partnership with Pearl Bank. This collaboration aims to unlock new energy and investment across Uganda’s agribusiness sector from smallholder farmers and SACCOs to women and young people. But equally important is helping these actors adapt agriculture to the realities of climate change. We encourage the bank to be proactive with its clients, not just in financing, but in preparing them to anticipate and manage climate risks.”
Trouyet emphasized that the €1 million technical assistance grant will be instrumental in building this proactive approach, strengthening Pearl Bank’s capacity to deliver climate-smart financing and advisory services to rural communities.
This partnership between PostBank Uganda (Pearl Bank) and AFD is more than a financing deal, it is a demonstration of long-term strategic cooperation between Uganda and France, built on shared goals of sustainability, inclusivity, and prosperity.
