International bank to give Ugandans low interest business loans in local currency

The African Import-Export Bank (Afexim) will open for business in Ugandan next month with its official launch coming in November.

The banks management yesterday finalized crucial documentation with the Ugandan Government for the take-off of its East Africa Branch Office in Kampala at a ceremony witnessed by President Yoweri Museveni of Uganda and former Nigerian President Olusegun Obasanjo.

Afreximbank President Benedict Oramah and Philemon Mateke, the Minister of State for Foreign Affairs of Uganda in charge of regional affairs, signed the Branch Office Agreement while Prof. Oramah and Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda, signed the Memorandum of Understanding Concerning the Temporary and Permanent Premises of the East Africa Branch Office in Kampala, at the Ugandan State House in Kampala.

Speaking following the signing, Oramah noted that the bank will be offering the lowest international lending rate to Ugandan businesses moreover in local currency.

“Given the level of support we have received; I am pleased to inform that the office will begin in October. launch will in November. We expect a $3b liquidity by 2020,” Oramah said.

“Kampala may be on its way to becoming a major financial center. It is set to witness an iconic facility to offer trade services, it will become a center for trade services,’ he added.

According to Uganda’s minister for finance, Matia Kasaijja, the bank will offer support to export and import trade through loan facilities to Uganda business.

Asked how they intend to do that an at what interest rate, the bank’s management said they are the ‘first international bank that will offer loans at a very low-interest rate in local currency.”

“We shall work directly with the central bank to offer these kinds of loans. About the interest, there is no doubt we shall offer the best there is,” Oramah said.

Museveni said he was happy that a Pan-African bank had chosen Uganda for its regional office. He promised the full support of his government.

“I am very happy that u chose Uganda to host this regional office. We are very committed pan Africanists, it is part of our ideology, we are very happy to host.”

“When it comes to trade and social transformation, that is our ideology and we will work very easily with the bank.”