Credit appetite on steep climb as Ugandan economy on recovery path

Premier Credit Uganda has received a significant financial boost of 8 billion Ugandan shillings from Oikocredit to enhance credit access in the region. Curtis Nzioka, Investment Manager for East and Southern Africa at Oiko Credit, discussed the partnership and its impact on the Ugandan economy in an exclusive interview with CNBC Africa. The collaboration between Premier Credit and Oikocredit marks a major milestone in the financial system, aiming to provide affordable and reliable credit to small and medium-sized enterprises (SMEs) in Uganda. The aftermath of the COVID-19 pandemic has left many SMEs and micro-entrepreneurs struggling to recover to pre-pandemic levels. The infusion of capital from Oikocredit will enable Premier Credit to offer long-term capital to structure suitable SME products, providing much-needed support for businesses looking to grow and thrive once again. This financial boost is expected to not only enhance business opportunities but also contribute to job creation, as SMEs are recognized as the backbone of many African economies. Oikocredit's focus on social impact investing since its inception in 1975 aligns with the current global emphasis on sustainable and ethical financing. The organization uses a comprehensive framework to measure the positive impact of its funding, tracking metrics such as job creation, income improvement, and changes in livelihoods within the communities it serves. By monitoring and supporting its partners with decades of experience, Oikocredit ensures that the capital deployed leads to meaningful and lasting change. As interest rates trend downward in the East African markets, Oikocredit emphasizes the importance of ethical lending practices and strategic partnerships to address the challenges posed by the macroeconomic environment. Despite the prevalent headwinds, the organization views this as an opportunity to intensify investments in SME financing and support partners committed to responsible banking. By offering equity, debt, and capacity-building assistance, Oikocredit aims to amplify the impact of its partners and expand the reach of inclusive financial services to a broader population. Looking ahead, Oikocredit remains steadfast in its mission to empower enterprises and individuals with access to appropriate financial products, particularly during times of economic uncertainty. By fostering collaboration and innovation in the financial sector, the organization strives to make a meaningful difference in the lives of people across Uganda and beyond.