AFC’s financial sector support activities in Uganda

06.04.2017

A participant leads peer discussion during the Housing Finance Bank Customer Relationship Management training

AFC’s financial sector support activities in Uganda

EIB-funded East African TA Programme (see also: www.ta-eca.eu) to various partner financial institutions in Uganda has been much appreciated by the recipient institutions since 2014. The partner banks include DFCU Bank, Centenary Bank, Housing Finance Bank and East African Development Bank. AFC’s project office in Uganda as well as staff from its regional office in Nairobi have supported partner banks in Uganda through training and on-the-job technical assistance and works closely with MSMEs throughout the entire country.

In Uganda, the project has conducted 34 training workshops for management, staff and board members of partner banks in areas like Trade Finance, SME Credit, Risk Management, Customer Relationship Management, Product Development, Microfinance Lending, Sales, Marketing, ALM and Leasing. It also delivered to thousands of bank clients the much needed training in business improvement and effective financial management. Furthermore, technical assistance was also offered in SME lending, Leasing, Microfinance Lending, Monitoring & Evaluation, and Credit Process Optimization.    

The staff trainings have awakened a healthy appetite for knowledge acquisition, retention and application. The application of this knowledge has resulted into institutional advantages that, though yet not quantified, is felt and talked about by senior management of the partner banks.  

Overall the benefits of the EIB funded training and technical assistance, according to partner banks, are significant. The participating banks have mentioned that their NPA/ PAR ratios have improved, business banking staff have become more proactive and effective and board members are putting more emphasis on credit risk oversight. Moreover, assets under the “watch” category could also significantly be reduced, a better credit assessment/ analysis could be accomplished, loan approval processes have been streamlined into committees, micro lending processes were improved and staff is now more aware of the key issues in long term lending. All these have happened due at least in part to the training and technical assistance offered under EIB support.

Overall, the banks are very happy with the interventions under the project and highly appreciative to EIB for the support and for the vivid benefits being realized. They are now looking forward to continuing their relationship with the EIB and the AFC-lead consortium. For further details please contact: