In a bid to ease access to finance among SMEs in the country, KCB Bank Uganda in partnership with the European Investment bank has carried out a financial training forum among local Small and Medium Enterprises (SMEs) in Kampala.
The training is aimed at helping SMEs understand key aspects of accessing finance from financial institutions including how to get a loan, how to package their loans application, and how well they can manage the funds to avoid defaulting.
Speaking during the training session at Hotel Africana, Joram Kiarie, the KCB Managing Director, noted that the trainings will bridge the gap between the bank and the SMEs.
“We have noticed first-hand the difficulties SMEs face while applying for loans,” noted Kiarie, adding: “Majority of our clients, especially first time borrowers do not know how to package their applications,” noted Kiarie.
“We are here to train our SMEs so that they can have the requisite information and knowledge to enable them access quick and affordable financing,” he further said.
Early this year, the European Investment Bank extended a 10M euros (Shs38b) loan facility to KCB Bank to lend to SMEs. The credit facility ensures that SMEs now have access to long-term loans ranging from 5-7 years to fund expansion of their business in terms of additional projects.
Brian Mwesigye, the CEO of Bravo Shoes, noted that one of the key challenges faced by SMEs is lack of books of account,.
“Most of our businesses are informal, we are trying to formalize them to ensure effective credit analysis,” he noted.
According to KCB, the EIB credit facility will benefit over 380 SMEs across the country with an average loan of Shs100 million.
So far, the bank has trained entrepreneurs from over 800 SMEs across the country in Jinja, Mbale, Lira, Gulu, Arua, Hoima, Fort Portal and Mbarara.