The European Investment Bank, Europe’s long term lending institution, will provide €28m ($35.36m) to Crane Bank for onward lending to local firms in both Ugandan shillings and foreign currency.

Pim van Ballekom, European Investment Bank Vice President, said: “Small business investment is essential to unlock business opportunities and create new jobs. The European Investment Bank is pleased to continue its long-standing partnership with Crane Bank that enables Ugandan firms to invest in new sectors and flourish.”

“This new support builds on our strong track record of supporting private investment across East Africa in close cooperation with leading local financial partners,” he added.

This loan is the third European Investment Bank lending programme to be managed in Uganda by Crane Bank.

Under the credit line, both existing and new customers of Crane Bank will be able to benefit from the loans.

Companies operating across a broad range of sectors, including manufacturing, agroindustry, tourism, and services, will be able to apply.

The loans can be drawn in any combination of currencies - UGX, USD or EUR - for maturities of up to 10 years with grace periods included.

This new lending programme backed by the European Investment Bank is the largest ever partnership with Crane Bank.

Previously, EIB schemes lent Crane Bank €3m ($3.79m) in 2007 and €12m ($15.16m) in 2010.

Past lending has supported nearly 1,000 jobs in manufacturing and tourism companies.

This loan to Crane Bank is part of the European Investment Bank’s broader support to SME lending by commercial banks in East Africa.

In the last five years, the European Investment Bank has provided over €400m ($505.18m) to 26 different financial institutions in East Africa, including commercial banks, development banks and microfinance institutions through dedicated SME and microfinance credit lines.

To strengthen the financial sector in the region, the EIB is currently implementing a €5m ($6.31m) technical assistance programme that will help local banks to broaden their range of financial services and help local companies to prepare bankable projects.