Small and medium-sized enterprises (SMEs) are being linked to formal financing through lending and enterprise development programmes aimed at helping businesses overcome barriers to growth, with new figures highlighting the role of credit in supporting Uganda’s private sector.
A report titled Report to Society 2025, published by dfcu Bank, shows that the lender financed 6,527 SMEs in 2025, while its foundation facilitated Shs38.08 billion in credit to enterprises, highlighting the role of financial institutions and business support programmes in connecting enterprises to formal financial services.
The figures come amid growing attention to the financing needs of businesses seeking to expand beyond small-scale operations, invest in production, strengthen supply chains and create employment.
For many enterprises, accessing finance is only one part of the challenge. Business development skills, market connections and partnerships can also determine whether firms can use credit effectively to grow and become more resilient.
‘Uganda’s economic growth depends not only on helping businesses start, but also on enabling promising enterprises to become stronger, more productive and more resilient,’ Dr James Ssemwanga, chairperson of dfcu Foundation, said. ‘Many businesses have the potential to grow, create jobs and support wider value chains, yet they need more than capital alone. They need the skills, partnerships, market connections and financial services that can help them move to the next stage.’
The foundation, which transitioned from a Business Development Centre in 2024, has supported more than 4,000 enterprises since 2018 and reached over 80,000 beneficiaries, according to the report.
At the launch event at Serena Hotel Kampala on Wednesday, Dr Winifred Mary Tarinyeba Kiryabwire, Chairperson of dfcu Bank said: ‘We are sharing these results not simply to celebrate our progress, but to give our stakeholders a basis on which to assess our contribution and challenge us to do more.’
Linking businesses to finance
The Shs38.08 billion in credit facilitated through the foundation represents one of the report’s key indicators of its role in connecting enterprises to formal financial services. The report also identifies the financing needs of businesses described as the ‘missing middle’: enterprises that have moved beyond survival but still require appropriate financing, business development services and market access to scale. Such businesses may need support that combines finance with technical expertise and commercial connections, rather than lending alone.
The foundation’s approach includes working with SMEs, aggregators, processors, commercial farms, manufacturers and other enterprises linked through production and distribution networks.
These connections matter because the growth of an individual business can have implications for suppliers, producers, workers and other firms within the same value chain.
Women entrepreneurs are another group highlighted in the report, which says the bank’s Women in Business programme has supported more than 80,000 women entrepreneurs.
The initiative forms part of efforts to expand women’s participation in economic activity through enterprise development and access to financial services.
The foundation also reports that the majority of its more than 80,000 beneficiaries since 2018 have been women and young people. It aims to support more than 100,000 additional beneficiaries between 2025 and 2030 through enterprise development, value-chain connections and market-oriented partnerships.
Accountability in banking
Charles M. Mudiwa, managing director and chief executive officer of dfcu Bank, said the publication of the report was intended to account for the resources and trust placed in the institution by customers, investors and the wider public.
‘Uganda’s understanding of sustainability did not begin with the introduction of environmental, social and governance frameworks. Our communities have long understood the importance of protecting the natural world, preserving what matters and ensuring that future generations can benefit from what has been entrusted to them,’ Mr Mudiwa said.
‘That same principle applies to banking. Our customers and stakeholders entrust us with their money, their businesses and their confidence. We therefore have a responsibility to account for how we use those resources and what they help us achieve,’ he said.
He said the report brought together the institution’s impact stories and key figures, providing stakeholders with a view of its contribution beyond conventional banking services.
The report also documents community health and environmental initiatives, illustrating how the institution’s activities extend beyond business financing. It says community health interventions reached more than 25,000 Ugandans, while a three-year partnership with Rotary Uganda involved a Shs1 billion commitment towards preventive healthcare through medical camps.
The interventions include consultations, diagnostic tests, medicines, dental and eye care, health education and referrals. The report lists outreaches in Jinja, Mbuya, Mutungo, Kasenyi Landing Site and Kamwokya.
On environmental initiatives, the bank reported that 62,000 trees were planted or distributed in 2025. The report acknowledges the importance of distinguishing between trees planted and those distributed, as well as tracking survival rates and maintenance arrangements to establish longer-term environmental outcomes.