Over 24,000 micro-enterprises in Uganda received financing in the first year of a new partnership between the European Investment Bank Group’s development arm, EIB Global, and domestic lender Centenary Bank.
The EIB Global-Centenary Bank agreement, signed in 2024, aims to make €100 million (428 billion Ugandan shillings) available to private-sector enterprises in Uganda over seven years, with a focus on businesses led by women and on micro-enterprises located in rural areas. The accord involves an EIB Global credit line of €50 million to Centenary Bank, which specialises in microfinance and is matching the sum.
In latest figures, women represented more than 60% of beneficiaries – above a target of 50%, according to the first annual disbursement report. In addition, 75% of projects financed were in rural areas, exceeding a 60% goal. Trade was the leading sector, financed at 50%, followed by agriculture at nearly 40%.
“The funding opportunity offered to Centenary Bank is addressing the challenges of access to finance especially for women and rural communities,” said EIB Vice-President Marko Primorac. “This will continue to spur the private sector and resilient economic growth in Uganda.”
The credit line to Centenary Bank represents EIB Global’s largest microfinance loan in any country in the African, Caribbean and Pacific (ACP) regions. Its targeted final beneficiaries are micro-enterprises, which have fewer than ten full-time employees.
The operation advances the European Union’s “Global Gateway” strategy for sustainable development by boosting investments in agriculture value chains in Uganda. It also bolsters job creation and rural development in the country.
An EIB Global programme known as the “Africa Women Rising Initiative” to expand services for female clients is part of the operation with Centenary Bank. As a result, Centenary Bank has improved the design of its financial strategy and products as well as the promotion of services tailored for women entrepreneurs, who have also been offered training in business skills such as in financial literacy and record keeping.
In addition, Centenary Bank has increased the number of female clients by 21% and its non-performing loans for women have dropped by over 8%.
Centenary Bank aims to be the preferred provider of innovative financing in Uganda, particularly microfinance, and a strong catalyst for sustainable socio-economic change in the country.
“Our co-operation with EIB Global is making good progress and the next few years will continue to bring more tangible impact to the business community especially in rural areas,” said Centenary Bank MD and CEO, Godfrey Byekwaso. “Their financing support has helped us address local funding gaps and gives us a better opportunity to serve and grow small businesses thus successfully integrating them into the formal system.”
The EIB Global operation with Centenary Bank is taking place under an EU financial initiative called the European Fund for Sustainable Development Plus, or EFSD+.
“Access to finance is often what allows a small business to grow, hire and invest in the future to create jobs, support families, strengthen local communities and help economies become more resilient,” said European Commissioner for International Partnerships Jozef Síkela. “Through this partnership, tens of thousands of micro and small businesses in Uganda have received that opportunity. Its strong reach among women entrepreneurs and rural communities shows Global Gateway at its best: working with trusted local partners to deliver growth that is more inclusive, more sustainable and closer to the people who need it most.”
The benefits of the EIB Global-Centenary Bank operation extend to refugees in Uganda who are from countries such as the Democratic Republic of Congo and South Sudan. Of the total loans provided in 2025, 200 went to refugees to help them become more economically self-sufficient.
One recipient is a woman named Gissele Muganza, a refugee from the Democratic Republic of Congo who runs a children’s clothing store in Uganda. She received a loan of UGX 2 million to increase the capital in her business and to pursue a bachelor’s degree. As a result, her monthly net profit has almost doubled to UGX 1.1 million and she has received her degree.
The new EIB Global-Centenary Bank operation builds on a partnership between the two organisations that dates to 2008. More generally, EIB Global has provided over €388 million since 1981 to support private-sector businesses in Uganda, targeting primarily agriculture and gender equality.
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