The Danish Embassy in Uganda has signed an agreement to transfer its 70% ownership interest in aBi Finance Limited to Impact Fund Denmark, which thus becomes 100% owner.
aBi Finance is an institution in Uganda that provides loans and credits to local financial institutions, which then lend on to businesses and smallholder farmers. With support from the EU and Denmark, more than 2.2 million farmers have gained access to financing of more than DKK 1.1 billion.
Funding is targeted in particular at smallholder farmers and women, who often have limited access to loans. This creates income and jobs, and strengthens the local economy.
The agricultural sector employs 72% of the workforce in Uganda and is therefore hugely dependent on financing. aBi Finance also focuses on securing loans for climate adaptation so that smallholder farmers can cope with the increasing challenges of climate change.
Impact Fund Denmark, formerly IFU, is Denmark’s development finance institution with over 55 years of experience. With a portfolio of DKK 18 billion, the fund invests in commercially sustainable projects that create economic and social progress in developing countries and support the UN Sustainable Development Goals.
With Impact Fund Denmark’s backing, we can reach even more smallholder farmers and agricultural businesses facing climate change. At the same time, we are strengthening the entire Ugandan sustainable financial ecosystem and ensuring that women and small producers have access to the financing they need.
The agricultural sector in Uganda is in great need of funding, and aBi Finance plays an important role here. Our investment helps channel funds efficiently, promote financial inclusion and deliver measurable results for both women and smallholder farmers.
For over ten years, Denmark’s investment in aBi Finance has shown what effective development finance can achieve: 2.2 million farmers reached, 300,000 jobs created and a viable financing model. The transfer to Impact Fund Denmark is a natural next step, and Denmark remains strongly committed to Uganda’s sustainable development.
aBi Finance plans to reach additional 1.5 million farmers over the next four years with Impact Fund Denmark as the owner.
External Communications Director
Thøger Kirk
+45 53 76 08 05
