Uganda: Afreximbank to boost long-term funding to businesses
The African Export-Import Bank (Afreximbank) has said it is ready to increase medium and long-term finance to Ugandan businesses with particular interest in the oil sector.The African Export-Import Bank (Afreximbank) has said it is ready to increase medium and long-term finance to Ugandan businesses with particular interest in the oil sector.
It said it would grow its loan asset from a level of $3.1 billion (€2.5 billion) at the end of 2012 to about $5 billion by the end of 2016.
The bank's vice-president, Benedict Oramah, said that Afreximbank would partner with local banks to offer credit lines to lend to small and medium-sized enterprises (SMEs), the Observer reports. Big firms in the telecoms and energy sectors are also a key target for funding, he noted.
Foreign investor and
interest in Uganda has risen in recent years as the East African nation prepares to begin crude oil production in 2018.
"In the near term, Uganda will be a producer of oil and this will increase its fiscal account. It is evident we have been heavily engaged in oil and mining activities, especially services across Africa," said Benedict Oramah, quoted by the Observer.
Ministry of Energy estimates that Uganda's oil reserves reach 6.5 billion barrels, with the value expected to be more than $150 billion.
In 2013, the country saw the consolidation of macroeconomic stability and a gradual recovery of economic activity, with real GDP growth projected to reach 6.6 per cent in 2014, according to figures from the African Development Bank.