The Arab Bank for Economics Development in Africa has injected 20 million US dollars which is approximately Shs76.7 billion into the Uganda Development Bank (UDB) to extend loans to small and medium enterprises in the country.
The Director of the Arab Bank for Economic Development in Africa, Sidi Ould Tah says, this is being done to support small and medium enterprises which are employing the majority of the population in Africa.
He says in Africa, 75% of the population is operating SMEs, and to his dismay, the financial institutions ignore extending loans to such businesses.
He made the remarks at the ongoing two-day SMEs recovery and growth forum being hosted at Munyonyo, a Kampala suburb.
However, the Managing Director for the Uganda Development bank, Patricia Ojangole says in 8.5 million people operate small and medium enterprises businesses and account for over 90% of the private sector, and it generates about 75% of the country’s GDP.