PostBank Uganda emerged as the overall best-performing Tier 1 Bank recognised by the Bank of Uganda at the Award Ceremony for Participating Financial Institutions in the Agricultural Credit Facility (ACF) and the Small Business Recovery Fund (SBRF).
The awarding ceremony held on Wednesday 28th, at Sheraton Hotel recognised PostBank’s efforts in disbursing a cumulative UGX 30 billion recovery funds to support the revival and growth of small businesses affected by the COVID-19 pandemic.
The milestone was recognized at a national awards ceremony for participating financial institutions, where PostBank was named “Overall Best Performing Bank in the SBRF Category”, a recognition based on value of disbursements, number of beneficiaries, and national outreach.
The recognition is also a testament to its commitment to financial inclusion and fostering prosperity for Ugandans.
“This award reaffirms our strategy and commitment to supporting the economic growth of this country, and a testament to the efforts of our team and the vision of the bank,” said William Kagoda, PostBank’s Head of Credit Evaluation.
Launched in 2020, the Small Business Recovery Fund was designed to breathe life into Uganda’s SME sector, which was severely affected during the COVID-19 lockdowns.
The fund provides a 50% government-backed contribution, with PostBank and other partner institutions matching the remainder, allowing eligible businesses to access up to UGX 200 million in affordable credit.
The fund targets both existing and new businesses, aiming to provide them with the necessary working capital to bounce back from closure threats, maintain jobs, and stimulate the economy.
In an exclusive interview with the CEO East Africa Magazine, Kagoda noted that, PostBank alone has disbursed over UGX 25 billion to date, and UGX 40 billion cumulatively, cementing its lead in facilitating this recovery.
“We’ve seen many businesses come back to life. They’ve restocked, rehired, and resumed operations, and some even expanding. That is the power of targeted credit,” Kagoda said.
Trade, Tourism as Biggest Beneficiaries
According to Kagoda, the tourism and trade sectors which were two of the most impacted industries during the pandemic have benefited the most from the fund.
With lockdowns halting tourism and limiting trade flows, many businesses in these sectors were at the brink of collapse.
“Tourism took the heaviest hit during COVID. Accommodation and recreation businesses had no traffic. This fund helped them reopen and become resilient once again,” he said.
In addition, many traders who had been unable to pay rent, restock, or maintain staff have used the fund to stabilize operations, contributing to local job creation and supply chain restoration.
Powered by tech
A key driver of PostBank’s success has been its extensive branch network, with 58 branches nationwide ensuring deep regional outreach. Each branch has played a pivotal role in identifying qualifying businesses and extending credit support.
In addition, PostBank has leveraged data-driven credit evaluation techniques to ensure equitable distribution across regions.
Housing Finance Bank Earns National Recognition for Advancing Agriculture and Small Business Recovery.By analyzing application trends and geographic representation, the bank has been able to rebalance its outreach, ensuring that underserved areas receive increased attention.
The bank has also partnered with fintech platforms like MTN and Extra Cash, allowing mobile-based access to credit and facilitating faster, more inclusive loan processing.
“We assess creditworthiness using deposit histories, past repayment behavior, and increasingly through AI-enabled tools. This allows us to make data-backed predictions and decisions,” he explained.
PostBank has embraced artificial intelligence (AI) and machine learning tools to enhance credit assessment and risk management.
“AI helps us analyze trends across sectors, predict loan performance, and suggest credit decisions. While final decisions remain with the bank, this has transformed our speed and accuracy in processing loans.”
These innovations have helped PostBank meet the Bank of Uganda’s capital adequacy milestone ahead of the June deadline, supported by prudent lending, strong credit monitoring, and timely recoveries.
Beyond the SBRF, PostBank has also registered a 70% growth in the uptake of the Agricultural Credit Facility, driven by increased marketing efforts and outreach through its national branch network.
“This product is now being adopted across all districts, and we believe it has immense potential in transforming rural economies.” Kagoda explained.
Graduating micro borrowers to Billion shilling business
PostBank’s credit strategy focuses on enabling customers to grow through successive loans. Some clients have moved from borrowing UGX 2 million to UGX 5 billion, a testament to the scalability of PostBank’s support.
Kagoda says, the lending has helped farmers become manufacturers and microbusinesses have evolved into exporters.
“These stories are what we mean when we say we are creating prosperity.”
The bank continues to track the impact of its loans through metrics such as jobs created, markets developed, and contributions to Uganda’s foreign exchange earnings.
Looking ahead
PostBank’s recognition through this award only motivates its staff to scale up efforts in supporting more Ugandans, opening up new opportunities and designing even more business-friendly products.