Business

KCB Bank, UMA sign MOU to enhance financing for Ugandan Manufacturers

KCB Bank Uganda has today, signed a landmark Memorandum of Understanding (MOU) with Uganda Manufacturers Association (UMA), in an effort aimed at boosting the production of goods and easing the operations of manufacturers in Uganda, through extending favourable financial products and terms.

The MOU, that was signed by KCB Bank Managing Director, Edgar Byamah, and UMA Board Chairman, Deo J.B Kayemba at the UMA Head offices in Kampala, will ensure that members access capital expenditure including asset backed financing to purchase and service equipment, project financing for expansion, working capital financing like overdrafts, import loans for raw material purchases, contract finance to execute contracts and invoice discounting to bridge delayed payment gaps, among other services.

Speaking at the MOU signing, Edgar Byamah, KCB Bank Managing Director said, “Today, we are excited to further expand our partnership network to the vibrant manufacturing sector of Uganda and I am happy to note that this partnership aligns with KCB’s vision of being the preferred financial solutions provider in Africa with a global reach. We believe by partnering with Ugandan manufacturers that are looking to market their products locally and abroad, we will enable sustainable development.”

KCB Bank Trade finance manager, Mary Mukasa Babirye expressed her delight at this step taken by both parties.

Babirye said, “The MOU with Uganda Manufacturers Association solidifies the commitment to fostering cooperation between the two entities. Under this strategic partnership, KCB Bank Uganda will extend affordable, convenient, and tailored financing facilities to UMA members. These facilities are designed to support the growth and development of the manufacturing sector in Uganda.”

In his remarks at the signing, Deo J.B Kayemba, Uganda Manufacturers Association Board Chairman noted, “The third strategic goal of UMA focuses on enhancing partnerships. In line with this objective, UMA is actively working to strengthen its collaboration with institutions such as KCB. The primary aim is to optimize benefits for our members. This includes securing negotiated interest rates and ensuring preferential treatment from the bank and training on financial literacy to hand-hold our SMEs. KCB is a regional Bank and we are happy to leverage your regional presence to grow our businesses as we enter the Africa, Continental Free Trade Area (AfCFTA).”

In an effort to scale up delivery of digital solutions, deliver targeted offerings, acquaint new customers and build overall business scale, KCBU, has over the years sought out partnerships with other institutions like telecoms, social and traditional organizations, among others.

According to The UMA Chairman’s Report 2022, the manufacturing sector annually contributes 18.5% to the country’s GDP, 23% tax to Uganda’s total tax income and has created 1.61 million jobs aligned with manufacturing activities.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button