The Financing Company for Development (FMO), the Dutch Entrepreneurial Development Bank, has extended a USD 20 million(approximately shs73.8billion) senior unsecured facility to I&M Bank Uganda Limited to support lending to small and medium-sized enterprises (SMEs) across multiple sectors.
The facility includes an initial USD 10 million senior debt commitment, representing the first tranche of the total USD 20 million financing package.
The announcement was made on Wednesday, at the I&M Bank Uganda Head Office at Kingdom Kampala.
The event was attended by representatives from the Dutch Embassy in Uganda, led by Corinne Abbas, First Secretary for Economic Cooperation. Also present were officials from the Dutch Ministry of Foreign Affairs, led by Natalie den Breugom, Deputy Director for Sustainable Economic Development, and representatives from the Dutch Ministry of Finance, led by Rene Idzenga, Head of State of Enterprises.
The FMO delegation was led by Huib-Jan de Ruijter, Co-Chief Investment Officer, while the I&M Bank delegation was headed by CEO Robin Bairstow. The event also included customers whose businesses operate in sectors aligned with FMO’s focus areas, including SMEs, sustainability, and women-led enterprises.
The transaction will provide flexible financing and promote decent work and reduced inequalities, in line with Sustainable Development Goals (SDGs) 8 and 10. The investment also qualifies for FMO’s 100% Reducing Inequalities label. FMO’s financing will be directed exclusively toward I&M Bank’s SME segment, with particular emphasis on unbanked entrepreneurs, women-owned businesses, and agricultural enterprises.
According to Robin Bairstow, CEO of I&M Bank (Uganda) Limited, the bank has a strong track record of supporting SMEs through tailored financial solutions focused on agriculture, women, and youth-led businesses.
“At I&M Bank Uganda, SMEs are not a peripheral segment — they are central to our growth strategy and to Uganda’s broader economic transformation,” Bairstow said.
He noted that the bank has supported SMEs through a range of initiatives, including tailored financial products, asset financing, capacity-building programs, and financial literacy training. Bairstow highlighted the bank’s recently concluded “Tukikube ne I&M Bank” campaign, which provided entrepreneurs with asset financing as well as structured financial literacy sessions to help them scale their businesses sustainably.
“With FMO’s financing, we can expand these offerings to reach more businesses across Uganda and across a wider range of sectors,” he said.
Bairstow further noted that over the past two years, the bank has strengthened its balance sheet, enhanced its capital position, and invested heavily in modern technology platforms to better serve SMEs.
“This financial strength enables us to extend more flexible and increasingly unsecured lending solutions to viable SMEs — particularly women-owned enterprises, agribusinesses, and youth-led ventures that may not always meet traditional collateral thresholds,” he explained.
Bairstow also emphasized that SME growth requires more than just access to credit — it also requires access to markets. He pointed out that intra-regional trade within East Africa accounts for nearly 40 percent, making cross-border financial efficiency essential for business competitiveness.
Through products such as the I&M Brisk platform, the bank is enabling SMEs to transact seamlessly across the region, reduce payment friction, ease supply chain bottlenecks, and improve working capital cycles.
“Our support goes beyond lending — we are facilitating trade flows, enhancing liquidity management, and positioning our customers to compete regionally and grow sustainably,” Bairstow said.
Commenting on the partnership, Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO, said the investment reflects the organization’s commitment to working with regional banks to create practical solutions for SME financing.
“Our investment in I&M Bank Uganda reflects FMO’s commitment to sustainable business growth, especially for difficult-to-reach groups,” he said, adding that the partnership will help FMO increase investments in least developed countries, promote economic growth, and reduce inequalities.
During the event, entrepreneurs shared how previous support from I&M Bank had enabled them to expand operations, employ young people, and increase revenues. The discussions highlighted businesses operating in agribusiness, digital innovation for financial inclusion, and women-led enterprises, demonstrating the tangible impact of improved access to credit on both business growth and inclusive economic development.
Additionally, as the bank advances its sustainability agenda through its parent company, I&M Group, FMO will work closely with the holding company to ensure that group-level sustainability standards are effectively implemented within the Ugandan subsidiary.
