aBi Finance receives UGX 68Bn Funding From EU, IFU to Boost Small Scale Farmers in Uganda.
Drake Nyamugabwa
The Danish Investment Fund for Developing Countries (IFU) and European Union have joined aBi Finance as new shareholders with new investments to a tune of UGX68 Billion aimed at improving profitability, income and employment of Ugandan farmers and agribusinesses.
This was sealed through a Shareholders Agreement signed to allow new investments while marking aBi Finance reorganization as a business entity.
The EU is investing $8.7 million in aBi Finance, together with the IFU who tops this up by $9 million and these investments will allow aBi Finance Ltd to transition from a company limited by guarantee to a company limited by shares, to commercialize its operations, attract more investors and create wider impact overall.
In her welcome remarks, at the signng ceremony held at Mestil Hotel on 2nd June 2022, CEO, aBi Finance Mona Muguma-Ssebuliba pictured below, applauded the support the Team Europe has extended to smallholder farmers through aBi Finance which she added will add to our past and ongoing initiatives to develop famers. She also gave special thanks to the Government of Denmark in Uganda for for establishing the aBi Finance 12 years ago.
“With the acquisition of new investments, aBi Finance has demonstrated that it is a sustainable and professionally run organization that can and will continue to attract foreign direct investment. We are confident that this investment will add to our past and ongoing initiatives to develop a competitive, profitable, and sustainable agribusiness sector in Uganda” she said
Speaking during the agreement signing ceremony in Kampala, the Danish Ambassador to Uganda, Nicolaj Hejberg Petersen said by investing money into aBi, they are making it bigger and better for farmers.
"We are convinced that aBi Finance' next chapter will enable the organisation to not just grow, but also benefit Uganda's farmers and agro-businesses even more,"Hejberg said.
The Chairman Board Felix Okoboi said that the investment will support an increased and strong refocus in the needed space of the rural farmers which he said will cross gaps which are not occupied by others.
The Senior Investment Manager at IFU, Anders Frigaard said "The investment in aBi Finance holds a promising potential for increasing financial services to rural small farmers, giving more an option to grow their business and improve livelihood. But to create a solid business case for IFU to invest in, we needed concessional financing, which we have secured by co- investing with the European Union's blended finance facilities,"
According to the European Union Head of Co-operation, Caroline Adriaensen, they are committed to helping small holder farmers in realizing their goals, noting that the funding is a testimony to this.
"We are delighted to join hands with the Danish Investment Fund for Developing Countries (IFU) to de-risk their
The testimonials given by each of these representatives in above picture, pointed out that aBi Finance
has supported their visions and have been grateful for the exciting journey so far.
