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Centenary Bank: a EURIZ guarantee for Ugandan micro and small enterprises
Project
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Signature date
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Location
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Uganda
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Financing tool
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Financing amount (Euro)
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20040609850
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Financing details
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UGX 5m guarantee
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Customer
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CENTENARY
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Type of customer
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Financial institution
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Project number
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CUG1105
This project is carried out with the support of the European Union and Organization of African, Caribbean and Pacific States (OACPS).
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union and the ACP Group. This information is given at the time of signature, without prejudice to any developments in the operation/project.
By allocating a EURIZ portfolio guarantee to a major bank in Uganda, Proparco is helping to improve the financial inclusion of micro, small and medium-sized enterprises in the country.
Client presentation
Centenary Rural Development Bank was founded in 1985 by the Ugandan Catholic church with the objective of serving the rural poor and contributing to the overall economic development of the country. Following years of strong growth, it has become the second largest financial institution in the country. In spite of this success, the bank has remained focused on its initial target clients. It has defined a “Mission Critical Portfolio”, which includes microfinance, micro, small and medium-sized enterprises and agriculture loans. It accounted for 47% of its total portfolio as at end of 2021. The bank’s objective is to increase it to 54% by 2026.
Project description
Proparco has allocated a EURIZ guarantee for UGX 5m (EUR 20m) to the bank. It will cover up to 70% of the loans allocated to micro, small and medium-sized enterprises.
EURIZ was launched in May 2019 with the support of the European Union (EU) and the European Development Fund, and the African, Caribbean and Pacific Group of States (OACP).
Project impact
The EURIZ guarantee aims to facilitate access to credit for micro, small and medium-sized enterprises, with a focus on sectors with high development impact, to help them play their essential role in economic growth and job creation.