Bank of Uganda (BoU) recently honored commercial banks that excelled in administering the Agricultural Credit Facility (ACF) and the Small Business Recovery Fund (SBRF).
The banks, according to BoU, enhanced the agriculture value chain through mechanisation, value addition, farm expansion and access to farm inputs by smallholder farmers. They jointly managed to disburse up to Shs 1.12 trillion to 6,587 beneficiaries across the country.
Under the SBRF, the Government of Uganda initially contributed sh100b towards this fund, which was matched by Shs 100 billion from participating financial institutions (PFIs) to make a total of sh200b. This fund was designed to provide concessional loans to small businesses struggling due to the effects of the COVID-19 pandemic.
Winners of the awards included banks in tier one, which was won Post Bank and tier 2, which was won by Opportunity Bank
The glamorous award ceremony, which was presided over by the minister of State for Investment, Evelyn Anite, and held at Sheraton Kampala Hotel recently, saw several participating financial institutions (PFI’s) win awards for their consistency in administering the two facilities, resulting in the rise in uptake.
The awards were given and judged based on the uptake of the SBRF and ACP by the PFI’s since inception.
Firstly in the category of loan applications submitted to Bank of Uganda, Opportunity Bank emerged the best, followed by Post Bank, and Pride Bank.
Opportunity Bank also shone in the category of Value of Loans disbursed by PFI’s, by emerging as the best, followed by PostBank Uganda and Pride Bank in third position.
When it came to regional outreach for the least performing regions, PostBank Uganda emerged winner, followed by Opportunity Bank with Pride Bank as runner up.
PostBank emerged as winner in the category of Best Performing PFI, including only commercial banks and Uganda Development Bank Ltd (UDBL). It was followed by Housing Finance Bank and Finance Trust Bank. In this particular category, BOU pointed out that commercial banks and UDBL contributed 50% of every loan disbursed.
In the category of best Performing PFI (including only Credit Institutions or Microfinance Deposit-taking institutions), Opportunity Bank emerged as the winner, followed by Pride Bank.
Opportunity Bank came on top in the category of the number of PFI Loans Applications submitted to BoU. It was followed by PostBank and Equity Bank Uganda. The recipient of this award showed the highest absorption in terms of value of loans, according to BoU.
The category of Value of Loans disbursed by PFI’s, Stanbic Bank Uganda emerged as winners, while Absa Bank Uganda Ltd and PostBank Uganda came second nd third respectively.
BoU also appreciated Opportunity Bank by selecting it as the best in the category of Number of PFI loans disbursed as a percentage of total number of disbursements. It was closely followed by Equity Bank and Post Bank. The recipient of this award showed the highest absorption in terms of number of loans disbursed.
In the category of the Number of Loans disbursed to micro enterprises, Opportunity Bank also emerged as winner and took the award.
Uganda Development Bank came on top in the category of Timely and Full Remittance of Demand Notes Issued, followed by Bank of Baroda Uganda and Diamond Trust Bank Uganda Ltd. T According to BoU, the recipient of this award demonstrated complete and timely payment of issued demand notes.
In the category of the Number of Beneficiaries of the Grain Trade Facility, Post Bank emerged winners, followed by Centenary Bank and dfcu Bank. BoU said that the recipient of this award demonstrated the disbursement of the largest number of loans to grain traders.
“This was due to the significant contribution towards the portifolio, the ripple effect towards employment opportunities of outgrowers and value added, Like milling, to mention but a few,” says BoU.
In the category of the Value of Loans Disbursed to Beneficiaries of the Grain Trade Facility, Stanbic Bank emerged the best, followed by dfcu Bank and Absa Bank Uganda. The recipient of this award demonstrated the disbursement of the largest value of loans to grain traders.
PostBank emerged as winners in the category of number of Loans Disbursed to Projects that Contribute Towards the Strategic Objective of Agro Industrialisation through Commercialisation and Modernisation of Agriculture.
It was closely followed by Centenary Bank and Uganda Development Ban. According to BoU, the recipient of this award demonstrated increased uptake in the number of ACF loans disbursed that contributed towards value addition and commercialization of agriculture.
The Overall Award for the Best Performing PFI,(including only Commercial Banks and UDBL), PostBank came on top, followed by Centenary Bank and dfcu Bank.
The night was all rewarding, and everyone seems to have walked away happy.
