Stanbic Bank Uganda in partnership with Human Capital Support and African Continental Free Trade Area (AfCFTA), Ecobank Uganda and Roke Telcom held the third strategic leadership summit to explore how Small and Medium Enterprise especially those in the agribusiness sector can tap into the innovative transformation and benefit from the Africa trade treaty which commenced in January, 2021.
Held under the theme “Inspiring businesses and economic transformation in the digital economy” the summit focused on the options open to governments and SMEs, and the role of African universities and the private sector in preparing the continent’s SMEs for what could be the biggest economic game changer in African history.
Speaking during the summit, Emmanuel Dei-Tumi, President of Human Capital International (HCI) said, “If we want Africa to develop, our energies should be focused on helping SMEs grow and not collapse at infancy as it is now. Most of SMEs in Africa are agro-based so if we can help SMEs in this sector to prosper, we will reduce unemployment, low tax base and food imports on the continent.”
He added; “Last year, majority African Union member state including Uganda signed up to AfCFTA agreement which signalled the creation of a single continental market for goods and services. This means harmonizing trading rules at a continental level and when fully implemented has the potential to increase intra-African trade by 52.3% by 2022.
Melisa Nyakwera, Head of Agribusiness at Stanbic Bank said, the bank understood the benefits of digitization of value chains and has embarked on the journey of development of digital platforms to enable its customers in the agribusiness and enterprise sector easily access financial services to quickly resolve their pressing financial need.
Uganda’s agriculture sector continues to face a lot of challenges which include: Low production yields because of use of subsistence farming methods, poor post-harvest handling and lack of storage facilities, poor market access and Limited access to funding because of the informal nature of business among others.
Melisa said this was why the bank is now offering affordable credit solutions, insurance products, branchless banking for bulk payments between buyers of agricultural commodities and their suppliers, and using our wide network provide farmers access to new markets where they are able get higher margins through digital marketing, Nyakwera added.
“Africa is known for its low internal trade. Platforms such as the Kampala Strategic Leaders’ Summit bring different stakeholders with expertise and knowledge from different sectors to share knowledge on how we can create new opportunities that SMEs in Uganda can take advantage to grow their businesses.
While giving her remarks, Emma Mugisha, the Executive Director at Stanbic Bank said, Stanbic Bank is focused on driving Africa growth and that is why we have developed tailor-made financial services and solution to address the challenges faced by SMEs and individuals in the agribusiness value chain.
Through our Economic Enterprise Restart fund, we provide low-cost financing for the informal sector businesses like SMEs, SACCOS and VSLAs to enable them recover from the impact of the ongoing pandemic. The fund is intended to grow businesses, create employment, improve the socio-economic status of women in rural areas, and widen tax base that will improve the economic activity of the country.
Mugisha added, we set up the Stanbic Business Incubator to support and nurture SMEs through trainings in enterprise development and capacity building to prepare for and harness business and growth opportunities that would help them advance their organizational goals.
In partnership with UN Women, Stanbic Bank is involved in the Climate Smart Agriculture to empower women farmers take up modern and environmentally friendly farming technologies to increase yields and incomes across the agriculture value chain, Mugisha said. Adding, this program is designed to provide farmers with agricultural inputs such as feeds, machinery, equip them with business management skills and resources needed to grow their businesses.
The Executive Director of Enterprise Uganda, Charles Ocici, hailed the AfCFTA initiative saying, by increasing intra-continental trade will be a game-changer for African SMEs and people.
