Agence Française de Développement (AFD), France’s public development bank, has committed 15 million euros in a concessional line of credit to Post Bank Uganda to boost sustainable financing for the country’s agriculture sector.
The 13-year strategic partnership, formalized Thursday, Oct. 2, also includes a 1 million euro (about 4 billion shillings) technical assistance grant. The funding is intended to support agricultural micro, small, and medium enterprises (MSMEs), smallholder farmers, and savings and credit cooperative organizations (SACCOs), with a focus on businesses owned by women and youth.
Julius Kakeeto, Post Bank Uganda’s managing director, highlighted the bank’s role in supporting rural communities and economic growth, noting that agriculture employs about 70% of Uganda’s population.
“Post Bank’s purpose is to Foster Prosperity for Ugandans,” Kakeeto said, adding that the partnership reaffirms the bank’s commitment to creating an enabling environment for participation in the “rich agriculture value chain.”
The AFD funding will enable PostBank to expand its climate-smart agriculture finance products and deepen financial inclusion in rural areas. The technical grant is designed to strengthen the bank’s capacity to offer affordable and sustainable financing to underserved groups.Virginie Leroy, France’s ambassador to Uganda, expressed enthusiasm for the collaboration.
“I am thrilled to witness today this partnership between Pearl Bank, a leading agricultural bank in Uganda, and AFD an impact investment partner from Team France,” Leroy said. “Through this initiative, France is investing in Uganda’s farmers, cooperatives, and rural entrepreneurs—the driving forces behind the country’s agricultural sector.”
Marc Trouyet, AFD’s country director for Uganda, echoed the sentiment, stating the collaboration aims to “unlock new energy and investment” across the agribusiness sector while driving the adaptation of agriculture to the realities of climate change.
The announcement follows several recent accolades for Post Bank, including a sustainability certificate from the European Organization of Sustainable Development and five awards at the Bank of Uganda’s Agriculture Credit Facility awards.