Kampala, Uganda | THE INDEPENDENT | The Entrepreneurial Development Bank FMO has extended a $20 million senior unsecured facility to I&M Bank Uganda Limited to expand financing for small and medium-sized enterprises (SMEs), in a move aimed at strengthening business growth and financial inclusion in Uganda.
The financing arrangement includes an initial $10 million senior debt commitment, representing the first tranche of the broader $20 million facility targeted at supporting SME lending across multiple sectors of the economy.
The partnership was announced on March 11 at the bank’s headquarters at Kingdom Kampala, with officials from the Dutch government and financial institutions in attendance. The event brought together representatives from the Embassy of the Kingdom of the Netherlands in Uganda, the Dutch Ministry of Foreign Affairs, the Dutch Ministry of Finance, and FMO leadership.
The transaction is structured to support lending specifically to SMEs, particularly those that remain underserved by traditional banking channels. According to the partners, the financing will support businesses across sectors while advancing economic inclusion and job creation.
The investment also aligns with global development priorities, supporting United Nations Sustainable Development Goals 8 and 10, which focus on decent work and reducing inequalities.
The facility qualifies for FMO’s 100% Reducing Inequalities label, reflecting its focus on businesses often excluded from mainstream financial services.
FMO’s financing will be directed entirely to I&M Bank’s SME portfolio, with particular attention to women-owned businesses, agricultural enterprises, and other unbanked or underbanked entrepreneurs.
According to Robin Bairstow, Chief Executive Officer of I&M Bank Uganda, SMEs remain a central pillar of the bank’s long-term strategy.
“;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. We’ve been supporting SMEs with diverse tailored financial products, asset financing, capacity-building initiatives, financial literacy, and other solutions”.
“Through the recently concluded Tukikube ne I&M Bank campaign, we offered asset financing and structured financial literacy sessions that equipped entrepreneurs with both capital and knowledge to scale sustainably,” noted Bairstow.
“Now, with FMO’s financing, we can expand these offerings to a much wider range of sectors and reach more businesses across Uganda. FMO’s investment builds on this expertise and advances the sustainable business growth of this segment,” he added.
Bairstow noted that the bank has spent the past two years strengthening its balance sheet, improving capital buffers and investing in digital infrastructure to expand access to SME financing.
“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.”
Beyond credit access, Bairstow emphasised the growing importance of regional trade integration for SMEs seeking growth opportunities.
“Importantly, SME growth today is not just about access to credit it is about access to markets. The East African region accounts for intra-regional trade levels of nearly 40%, making cross- border efficiency critical for business competitiveness. Through products like our recently launched I&M Brisk platform, we are enabling SMEs to transact seamlessly across our regional footprint, reduce payment friction, ease supply chain bottlenecks, and improve working capital cycles. In this way, our support goes beyond lending we are facilitating trade flows, enhancing liquidity management, and positioning our customers to compete regionally and grow sustainably,” he reiterated.
Bairstow further noted that the partnership with FMO strengthens not only the bank’s lending capacity but also its broader ambition to build a more inclusive financial ecosystem.
“We are building a bank that is personal, responsive, and innovative one that truly lives our promise of being ‘On Your Side: Empowering Your Prosperity,’” he said.
For FMO, the partnership reflects its strategy of working with regional financial institutions to expand access to finance in developing markets.
Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO, said the investment underscores the institution’s commitment to inclusive economic development.
“Our investment in I&M Bank Uganda reflects FMO’s commitment to sustainable business growth, especially for difficult-to-reach target groups. Through our partnership with I&M Bank, FMO can increase its investments in Least Developed Countries, promote economic growth, and reduce inequalities.”
Entrepreneurs attending the event also shared how previous financing from I&M Bank had helped expand operations, create employment opportunities for young people and increase revenues.
Discussions highlighted businesses operating in agribusiness, digital innovation for financial inclusion and women-led enterprises, illustrating how improved access to finance can drive both enterprise growth and broader economic development.
As part of the arrangement, FMO will also work with I&M Group PLC, the bank’s parent company, to ensure that group-level sustainability standards are implemented within the Ugandan subsidiary as the lender expands its SME financing
