Equity Bank Uganda is positioning itself to play a bigger role in financing businesses trading between Uganda and Kenya, with the lender committing to develop financial solutions for members of the newly launched Business Network Uganda (BNU).
Speaking at the launch of the network, Equity Bank Uganda Chief Financial Officer Richard Muraguri said the bank would work with BNU to develop products suited to businesses operating across the two countries.
He said these would include trade finance, foreign exchange solutions, cross-border payments and business accounts that can work in both Uganda and Kenya. “We are truly honoured to work with you,” Muraguri said, adding that Equity would first work with BNU to understand the needs of its members before developing the appropriate financial solutions.
Muraguri said banks often come in after entrepreneurs have already created business opportunities, providing the financing needed to grow those businesses. “Regional integration is not delivered by institutions like ours. It is delivered by people who choose to trade across the border, who take a risk and absorb the friction,” he said.
He said Equity’s role was to help make such businesses more sustainable by providing access to finance and other support.
Irene Mugisha, Chief Executive Officer of the Presidential CEO Forum, challenged businesses to take a bigger role in financing and developing infrastructure that supports trade. She explained that African businesses should not rely solely on foreign investors to develop infrastructure, arguing that local businesses, working with banks, can pool resources and invest in projects that support their own growth.
“We have the resource, we have the network, we have whatever it takes, and we have the banks,” she said. She also called for businesses to work together to address non-tariff barriers and said regional cooperation should extend beyond individual nationalities to the wider East African market.
Kenya High Commissioner to Uganda Ababu Namwamba said the launch of BNU was an important step towards organising Kenyan professionals and entrepreneurs in Uganda around investment and business opportunities.
He said Kenya was increasingly looking at its diaspora as a source of investment, skills, technology and market opportunities, rather than only remittances.
Namwamba said Kenyan remittances reached US$5.04 billion globally last year, with Uganda among the top 10 countries contributing to that flow. He encouraged BNU members to identify investment opportunities in both Kenya and Uganda, and pursue joint ventures, business partnerships and collective investments.
For Equity bank, the launch provides an opportunity to deepen its relationship with a growing community of Kenyan professionals and businesses in Uganda while supporting the wider push for more cross-border trade and investment in East Africa.
