PostBank, which is rebranding to Pearl Bank, has announced a 13-year strategic partnership with Agence Française de Dévelopement (AFD), France’s public development bank, to support sustainable agricultural financing.
Formalized today at the Bank’s Nansana Branch in Wakiso, AFD has extended 15 million EURO, equivalent to UGX 60 billion as a concessional line of credit and an additional 1 million EURO about UGX 4 billion technical assistance grant to PostBank.
The funding is designed to enable agricultural micro, small, and medium size enterprises (MSMEs), smallholder farmers, and SACCOs, with a specific focus on women- and youth-owned businesses, participate in the agricultural value chain.
During the partnership announcement, PostBank Uganda Managing Director Julius Kakeeto highlighted how PostBank continues to play a key role as a financing partner in Uganda’s agricultural transformation, especially in supporting rural communities, women-led farming groups, and informal farmer cooperatives.
“PostBank’s purpose is to Foster Prosperity for Ugandans, and this has been showcased through the financing portfolio that we extend to the different sectors that continue to inspire economic growth. Among these is the agriculture sector, which employs about 70% of Uganda’s population,” Kakeeto said.
Kakeeto while quoting the National Development Plan Four (NDP IV) noted that, agriculture is among the key areas that have been earmarked for growth and specifically, agro-industrialization, since it is among the anchor sectors that are employing the majority of Ugandans.
Kakeeto further remarked, “The bank’s partnership with Agence Française de Développement re-affirms our commitment towards creating an enabling environment for our people to participate in the rich agriculture value chain, which comprises sector actors like agro-input suppliers, mechanization dealers, irrigation solution providers, and regulatory institutions like the Bank of Uganda.”
Uganda to host WFP Global Fleet Hub, establish unique humanitarian platesThe partnership and funding by AFD will enable PostBank to expand its climate-smart agriculture finance products and deepen financial inclusion in rural communities. The technical grant will strengthen the Bank’s ability to provide affordable and sustainable financing to underserved groups.
The partnership’s key objectives are to:
- Expand financial access in the agricultural and rural sectors.
- Support the development of innovative financing solutions.
- Promote gender equality through products tailored for women and youth.
- Build capacity for local actors in sustainable, climate-resilient agriculture.
“I am thrilled to witness today this partnership between Pearl Bank, a leading agricultural bank in Uganda, and AFD, an impact investment partner from Team France. Through this initiative, France is investing in Uganda’s farmers, cooperatives, and rural entrepreneurs – the driving forces behind the country’s agricultural sector” H.E Virginie Leroy, Ambassador of France to Uganda said.
Marc Trouyet, the Country Director for AFD in Uganda applauded the partnership saying “The Agence Française de Développement is proud to launch a long-term partnership with Pearl Bank. This collaboration aims to unlock new energy and investment across Uganda’s agribusiness sector – from smallholder farmers and SACCOs to women and young people – while driving the adaptation of agriculture to the realities of climate change.”
Last week, PostBank was awarded a prestigious sustainability certificate by the European Organization of Sustainable Development (EOSD), and in June this year, it was recognized at the Bank of Uganda’s Agriculture Credit Facility (ACF) and Small Business Recovery Fund (SBRF) Awards where it gained 5 awards and 11 certificates, a demonstration to the Bank’s continued support for the sector with innovative approaches and inclusive agricultural lending that are a catalyst to the country’s broader development agenda.
These recognitions are a testament to the Bank’s effort towards championing sustainable initiatives in its operations, and its partnership with Agence Française de Développement solidifies this.
