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At a ceremony held at the French Embassy on Wednesday March 10, and attended by French Ambassador, H.E. Mr. Jules-Armand Aniambossou and Mrs Priscilla M Serukka, Board Chair Soluti Finance East Africa Limited (Soluti), Mr. Paul Katende, CEO Soluti and Mr. Hatem Chakroun, AFD country Director in Uganda, signed two financing agreements with a total amount of €2.9 M (Approx 12.9 Bn UGX). The funding aims to enhance the support to the development of agricultural and rural finance in Uganda for all actors in value chains that are currently underserved by the financial system. It consists of a €2.4 M credit line and €500,000 grant.
The €2.4 M credit line will enable Soluti to finance eligible projects in the agricultural and rural sectors with sustainable conditions for the final beneficiaries, and that will develop Soluti’s agricultural investment financing activity.
The €500,000 grant will be dedicated to capacity building, targeting Soluti and its beneficiaries. It consists of different support components: strengthening of the capacity of the financial institution to reinforce its Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) system, reinforcing its gender equality response and its agricultural sector portfolio, strengthening of capacity for its partners and support for the credit lines’ implementation.
In Uganda, rural actors’ access to formal financial services is essential for making the investments required for the development of their activity, but also for managing risks and improving their resilience capacity. By working together with Soluti, AFD will propose an adapted financial offer, and therefore participates in increasing the added value and incomes of small producers in the agricultural and rural sector in Uganda.
Speaking during the ceremony, French Ambassador Jules-Armand Aniambossou stated that: “This new financing shows France’s commitment to support Uganda in promoting mobilization of financial institutions in order to achieve productive and resilient agriculture, to improve living conditions for rural populations and to foster the sustainable structuring of rural territories. This has been made possible thanks to Agreenfi, AFD's agricultural finance label, designed to propose a tailor-made and sustainable financial offer as well as tailor-made technical support.”
On behalf of Soluti, Mrs. Priscilla Mirembe Serukka, the Chairperson Board of Directors - Soluti noted that: “It is indeed a great milestone to have AFD as a key funding partner. The credit facility and grant shall enable Soluti to increase its outreach to Smallholders hence enhancing financing opportunities to the low-income people in the East Africa region. This funding support has been timely in bridging the financing and technical gaps identified as key obstacles to the development of the agricultural sector, and especially towards sustainable and climate-smart agricultural practices”.
Media contacts:
- For AFD: Bérénice Oreyo-Pierronnet
- For Soluti: Cressy Musasiizi