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The lender has waived transaction charges and loan arrangement fees for six months and says credit decisions will be made within 48 hours
Kampala, Uganda | JULIUS BUSINGE | NCBA Bank Uganda has launched a new business banking proposition offering unsecured loans of up to Shs500 million within 48 hours, as the lender seeks to revive lending to small and medium-sized enterprises amid subdued demand for business credit.
The initiative, unveiled in Kampala on July 9 alongside the bank’s “Ku NCBA Kiggwa Ku Bwerere” campaign, combines unsecured lending with fee waivers, digital banking services and business advisory support in an effort to attract entrepreneurs facing tight financing conditions.
Small and medium-sized enterprises account for the bulk of Uganda’s private sector but continue to struggle with limited access to affordable credit, weak cash flows and rising pressure to modernise their operations.
“SMEs account for over 70% of Uganda’s private sector activity, yet many continue to face challenges including limited access to finance, cash flow constraints and the need for digital transformation. Through our new Business Banking proposition, we are providing businesses with financial solutions, expertise and partnerships they need to grow with confidence,” said Mark Muyobo, chief executive of NCBA Bank Uganda.
He said the initiative reflected the bank’s purpose of “Banking on Belief, Empowering Ambitions” by addressing obstacles that continue to constrain business expansion.
“You need digital tools, business training, market access and access to finance. Easier access to working capital is what this campaign is about. We’re removing barriers to growth. There will be zero loan arrangement fees for customers during this campaign because speed matters for business,” Muyobo said.
Under the proposition, businesses will be eligible for unsecured invoice discounting of up to Shs500 million, unsecured Local Purchase Order financing of up to Shs180 million and unsecured business loans of up to Shs200 million. The bank will also offer education finance of up to Shs500 million and asset financing covering as much as 90 per cent of invoice value.
Waived transaction charges
NCBA has waived transaction charges and loan arrangement fees for six months and says credit decisions will be made within 48 hours.
Bashir Kiiza, the bank’s head of business banking, said the strategy extends beyond credit by combining financing with advisory services and market access.
“NCBA understands that businesses require more than lending. We are combining finance, advisory and market access because these are the solutions that speak to the needs of our customers. When businesses thrive, jobs are created and the economy prospers,” Kiiza said.
To strengthen the proposition, the bank has partnered with MAT Abacus to provide SME customers with an enterprise development programme covering financial management, bookkeeping, accounting, tax compliance, succession planning, business planning and corporate governance.
The programme is intended to improve the management capacity of small businesses while increasing their ability to qualify for affordable financing.
“Access to finance is a problem, but not knowing what to do to access finance is also a problem. We want businesses to adopt good governance practices, strengthen business continuity and prepare themselves to access affordable capital,” said Samuel Sejjaaka, chief executive of MAT Abacus.
Participating businesses will receive coaching and mentorship on governance, investment readiness, disaster recovery and business continuity planning. MAT Abacus expects between 30 and 50 businesses to enrol initially, with between 15 and 25 per cent expected to become long-term NCBA banking customers.
Expanding digital offerings
The bank is also expanding its digital offering through the NCBA Now and NCBA ConnectPlus platforms, allowing businesses to manage accounts, approve transactions, make payments and monitor cash flows remotely.
The initiative has won support from the Kampala City Traders Association, which said the combination of financing and advisory services could help revive borrowing among traders.
“The growth of Uganda’s private sector depends on strong partnerships and financial institutions that understand the realities of doing business. This proposition combines accessible financing, digital innovation and business development support to help SMEs scale sustainably,” said Abel Mwesigye, the association’s chief executive.
Mwesigye said borrowing among traders had slowed in recent years but argued that combining finance with business support could encourage more productive investment.
“We have the money, but many businesses don’t know what to do with it. We believe these additional services, beyond financing, will increase appetite for loans and drive business growth and economic transformation,” he said.
Paul Musoke, managing partner at Ankolo Consulting, said many businesses required support translating growth plans into execution.
“There is often a gap between business ideas and implementation. Coaching businesses and linking them to financial institutions will help them execute their growth strategies more effectively,” Musoke said.
NCBA said it would also leverage its East African network to support businesses engaged in regional trade, positioning cross-border banking services as part of its strategy to expand lending to Uganda’s private sector.
