Uganda’s economy, and indeed its social fabric, is powered by a dynamic and resilient force: Small and Medium-sized Enterprises (SMEs). Making up a remarkable 90% of the country’s private sector, these businesses are the true engine of growth, creating livelihoods and opportunities for women, youth, and families everywhere.
This pivotal role was the central theme of the inaugural Enterprise Finance Summit, a landmark event convened by Centenary Bank at Mestil Hotel in Kampala this week
“At Centenary Bank, SMEs are more than clients; they are why we exist,” said Fabian Kasi, the Bank’s Managing Director, as he welcomed customers and partners.
He noted with pride that while the bank’s asset base stands at over Shs8 trillion, its greatest achievement has been its role in empowering entrepreneurs, financing over 150,000 enterprises and serving 3 million customers across the nation.
The USD 42 Billion Gender Finance Gap
While the numbers paint a picture of immense potential, they also reveal a significant paradox. It was noted that SMEs, particularly those led by women, face several barriers to growth.
Alvin Ochieng of the African Guarantee Fund (AGF) underscored this critical issue, highlighting the urgent need to close Africa’s staggering USD 42 billion gender financing gap. He explained that despite women driving 60% of entrepreneurship across the continent, they receive a mere 7% of start-up funding.
This stark disparity, according to Ochieng, shows that the economic engine of Uganda is not running at its full capacity.
“The barriers to accessing capital, often faced by women entrepreneurs, are not just a social issue but a fundamental economic challenge that requires a collaborative and decisive response,” Ochieng explained.
Forging a Way Forward with Partnerships
The Enterprise Finance Summit was not just a platform for discussing problems; it was also a forum for showcasing a working solution.
The strategic partnership between Centenary Bank and the African Guarantee Fund is a testament to the power of collaboration in addressing this finance gap.
Through the joint AFAWA (Affirmative Finance Action for Women in Africa) initiative, the partnership has already provided over USD 200 million (over Shs 703 billion) in loans to Ugandan entrepreneurs.
However, the support extends beyond mere finance. As Ochieng rightly emphasised, “true success lies not in the money alone but in the businesses grown, jobs created, and communities transformed.”
He explained that the initiative’s focus on capacity building, which includes training, trade finance seminars, and women’s business forums, ensures that entrepreneurs are not only funded but also equipped with the skills needed to thrive.
The summit served as a powerful call to action for business leaders and policymakers to seize the opportunities before them.
This is because by breaking down barriers and fostering a more inclusive financial ecosystem, Uganda can unleash the full potential of its SME sector, ensuring shared prosperity and a more vibrant, resilient economy for all.