Access to capital remains one of the biggest challenges for small and medium-sized enterprises (SME’s) in Uganda. Meanwhile, the agricultural sector accounts for approximately 24 per cent of Uganda’s GNP and employs around 65 percent of the labor force.
aBi Finance provides banks and local financial institutions with credit lines and guarantees, enabling them to reach smallholder farmers and agribusinesses across Uganda. Impact Fund Denmark, in close partnership with the Danish Embassy in Uganda and the European union, helped turn early development efforts into a new and transformative market for agricultural finance. aBi Finance demonstrates how market creation can happen through collaboration – an example of what we call and impact partnership.
2.2 million smallholder farmers with access to finance
The company has provided credit access to over 2.2 million smallholder farmers and agricultural SMEs, unlocking a total of approximately DKK 9.4 billion in capital across Uganda’s agricultural finance sector. This has significantly expanded financial access and strengthened the institutional landscape in rural markets.