EIB Global, Housing Finance Bank to Invest €25M on Women-led Businesses

In a significant move towards promoting gender-inclusive economic growth, EIB Global, a part of the European Investment Bank, and the Housing Finance Bank have unveiled a €50 million (approx. UGX212.8 billion) investment partnership. The initiative focuses on supporting private sector entities, particularly Small and Medium-sized Enterprises (SMEs) in Uganda.

Highlighting a special emphasis on gender, at least half of the investment funds will be dedicated to businesses owned or led by women. This collaboration aligns with the broader vision of promoting women’s access to finance and fostering higher developmental impact, especially in sectors such as agriculture, health, manufacturing, transport, trade, education, renewable energy, and clean water.

The project is in line with both Ugandan and European Union (EU) priorities, aiming to enhance inclusive growth and sustainable economic development by empowering women. Gender inclusion stands as a central theme in Uganda’s Vision for 2040, emphasizing the reduction of gender inequalities to drive socio-economic transformation.

The European Investment Bank, as the first multilateral lender to sign the 2X Challenge Criteria, commits to offering at least 30% of its investment support to businesses related to women. In this partnership, the threshold is raised to 50%, reinforcing the strong commitment to enhancing the socio-economic conditions of women.

During the signing ceremony, Edward Claessen, EIB Head of the Regional Hub for East Africa, expressed the bank’s dedication to supporting entrepreneurship and business development, particularly for women. “The collaboration, aligned with the celebration of International Women’s Day, emphasizes the shared commitment to address systemic gender inequality in accessing capital,” he said.

Michael Mugabi, CEO of Housing Finance Bank, emphasized the bank’s dedication to strategic partnerships that contribute to Uganda’s socio-economic development. He said, “The investment will play a crucial role in supporting micro, small, and medium enterprises, especially those owned by women, aligning with the bank’s strategic plan for 2023/27.”

This collaboration marks a significant step forward in narrowing the gender-based digital divide, providing new opportunities for rural communities, and fostering sustainable development in Uganda. Beyond the financial support, the initiative includes technical assistance under the African Women Rising Initiative delivered by the EIB.

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, highlighted the substantial contribution this loan will make towards the objectives of the Team Europe Initiative, promoting sustainable business and investing in young businesses in Africa.

Entrepreneurs in Uganda also stand to benefit from the EIB’s SheInvest initiative launched in 2019, committing to mobilize €2 billion (approx. UGX8.5 trillion) of gender-responsive investment across Africa, with a focus on empowering female-led businesses.

The partnership with financial institutions aims to address market challenges and enhance financial inclusiveness, recognizing the key role strong financial intermediaries play in promoting economic growth.

The EIB, in collaboration with various financial institutions in Uganda, has a history of providing substantial support to private sector businesses, with a focus on agriculture and gender thematic sectors. Technical assistance is an integral part of this support, covering areas such as risk management, product development, environmental and social assessment, and financial literacy.