ASA International has launched a new micro, small and medium enterprises (MSME) loan product in Uganda, targeting women entrepreneurs seeking to expand and diversify their businesses.
The product was unveiled on Monday at the company’s offices in Kampala during an event attended by business leaders and representatives from the private sector, including officials from the Business Network International, the Private Sector Foundation Uganda and the Federation of Small and Medium-sized Enterprises Uganda.
Speaking at the launch, ASA Microfinance Uganda Limited Chief Executive Officer Allen Semboze said the new product is part of the institution’s strategy to expand access to financial services and support enterprise growth across the country.
Semboze said MSMEs remain critical to Uganda’s economy through job creation, local trade and household income support, noting that many businesses continue to face challenges accessing affordable financing.
He said ASA currently serves more than 220,000 active customers, has an outstanding loan portfolio of Shs170 billion and operates 140 branches countrywide.
“As an institution, ASA Microfinance Uganda has built a strong foundation to support this next phase of growth,” Semboze said, adding that the launch reflects the institution’s commitment to financial inclusion and enterprise development.
The new facility will provide two categories of loans under the MSME Silver and MSME Gold packages. According to the Regional Head of the MSME product, Muzoora Kabuga, the loans will range from Shs8 million to Shs35 million, with repayment periods of up to 24 months.
Kabuga said the product was designed to address complaints from small business owners about high interest rates, strict collateral requirements and complicated loan procedures in the market.
Under the arrangement, beneficiaries will automatically join the MSME Business Club, through which they will access business management training, bookkeeping support, tax filing guidance and market linkages.
The package also includes micro property insurance and life cover supported by Turaco to protect businesses against risks such as burglary, fire and floods.
ASA International Group Chief Executive Officer Rob Keijsers said Uganda was selected as the first market within the ASA network to roll out the MSME proposition because of its strong entrepreneurial culture and growing SME sector.
“We are especially proud that Uganda is the first market within ASA International to launch this MSME proposition,” Keijsers said.
He added that lessons from Uganda’s experience will help shape expansion of the product to other ASA markets globally.
ASA International entered Uganda’s microfinance sector in 2012 and began operations in 2013, focusing on collateral-free lending to women-owned businesses through customer group lending models.
The institution says it currently disburses more than Shs50 billion in short-term loans monthly under its microfinance operations.