U.S. Government Agencies DFC and USAID Partner with Opportunity Bank to Launch the First-Ever U.S. Lending Program to Refugees and Host Communities in Africa.
Kampala, Uganda — The U.S. International Development Finance Corporation (DFC), the U.S. government’s development finance agency, has signed an agreement with Opportunity Bank Uganda Ltd that will enable an increase in lending to refugee businesses and Ugandan host communities by up to $9 million (33 billion UGX) over the next six years. This first-of-its-kind partnership in Africa is intended to help create and grow 60,000 small enterprises across Uganda access financing.
Roughly 70 percent of these loans will be for refugees, and 30 percent will be allocated to members of Ugandan host communities.
The U.S. Agency for International Development (USAID) is supporting the partnership by providing advisory services to prospective borrowers and Opportunity Bank. Given that 18,000 loans are specifically targeted for women, USAID is providing financial training to women borrowers and helping Opportunity Bank to design and market the loans to women. USAID will provide business skills to borrowers and support refugee lending across Opportunity Bank branches.
At the launch event, U.S. Ambassador to Uganda William W. Popp said, “Today, we are taking a big step toward many more refugees and Ugandan host communities fully participating in the formal economy by accessing life-changing financing opportunities. The U.S. government’s partnership with Opportunity Bank is proof of what we can accomplish when the public and private sectors combine efforts to empower communities.”
The CEO of Opportunity Bank Uganda Ltd, Owen Amanya, said, “For close to 30 years now, Opportunity Bank has been transforming the lives of underserved people and communities in Uganda, affirming this unwavering commitment by delivering tailored financial services to refugee businesses and host communities. We appreciate this partnership with the U.S. International Development Finance Corporation, which is aligned with the Bank’s mission to reduce poverty levels and transform lives and communities. The partnership will unlock opportunities and see very many previously financially excluded refugees and Ugandans in the host communities given a chance to earn an income and live a life of dignity and purpose.”
Distributed by APO Group on behalf of U.S. Embassy in Uganda.