By David Mwanje
A new financing partnership is opening access to credit for women entrepreneurs investing in environmentally friendly businesses in Uganda.
Finance Trust Bank has partnered with Investisseurs & Partenaires (I&P) to launch a loan guarantee facility aimed at supporting women-led green enterprises.
The facility cuts collateral requirements to about half the value of the loan, easing one of the biggest barriers women entrepreneurs face when seeking bank financing.
The program will fund businesses in renewable energy, sustainable agriculture, waste management, eco-tourism and circular economy ventures.
Loans average about Shs93 million, carry interest rates below 20 percent, and include a six-month grace periodbefore repayments begin. Borrowers are given roughly one year to repay the loans.
Finance Trust Bank says the structure is designed to give small businesses time to stabilize before servicing the loans.
The initiative is expected to support about 40 green enterprises in its pilot phase, many run by women involved in agriculture, small-scale trade and community environmental projects.
Under the arrangement, Finance Trust Bank will handle loan applications and approvals, while Investisseurs & Partenaires will verify that the businesses are women-led and demonstrate environmental impact.
