EIB Global, Centenary Bank unlock Shs428 billion for 24,000 Ugandan micro-businesses

KAMPALA, Uganda — Tens of thousands of micro-businesses in Uganda, including refugee entrepreneurs and women in rural areas, have received fresh financial backing under a major joint initiative by European development funders and a top local lender.

The European Investment Bank’s development arm, EIB Global, alongside Uganda’s Centenary Bank, announced that over 24,000 micro-enterprises accessed credit during the first year of their strategic partnership.

The seven-year initiative, signed in 2024, aims to unlock 100 million euros (428 billion Ugandan shillings) for small-scale private enterprise across the East African country. EIB Global provided a 50 million euro credit line, matched by Centenary Bank, which focuses primarily on microfinance.

According to the partnership’s first annual report, women-led enterprises made up more than 60 percent of all beneficiaries, surpassing an initial 50 percent target. Furthermore, three-quarters of the funded projects were situated in rural areas, where formal access to credit remains severely limited.

Trade accounted for half of the funded activities, followed closely by agriculture at nearly 40 percent.

EIB Vice President Marko Primorac highlighted that the funding targets structural barriers facing marginalized economic groups. “The funding opportunity offered to Centenary Bank is addressing the challenges of access to finance especially for women and rural communities,” Primorac said, adding that the move aims to build “resilient economic growth in Uganda.”

Reaching Marginalized Communities and Refugees

The credit line marks the largest microfinance package EIB Global has extended to any country across the African, Caribbean, and Pacific regions. The funding strictly targets micro-enterprises employing fewer than 10 full-time staff.

The scheme also extended direct support to displaced communities hosted in Uganda, which remains home to Africa’s largest refugee population. In 2025, around 200 loans were issued to refugees fleeing conflict in neighboring states such as the Democratic Republic of Congo and South Sudan.

Among the recipients is Gissele Muganza, a Congolese refugee running a children’s clothing shop in Uganda. After securing a loan of 2 million Ugandan shillings, Muganza expanded her inventory and completed a bachelor’s degree. She reports that her monthly net profit nearly doubled to 1.1 million Ugandan shillings.

Godfrey Byekwaso, managing director and CEO of Centenary Bank, noted that international financing support helps plug critical local funding gaps, bringing small-scale entrepreneurs into the formal banking system.

“Access to finance is often what allows a small business to grow, hire and invest in the future to create jobs, support families, strengthen local communities and help economies become more resilient,” said European Commissioner for International Partnerships Jozef Sikela.

The operation forms part of the European Fund for Sustainable Development Plus (EFSD+) under the European Union’s broader Global Gateway strategy. EIB Global has poured more than 388 million euros into Ugandan private sector projects since 1981, focusing heavily on agriculture and gender equity initiatives.