Highlights - United Nations

Highlights - United Nations

Small and Medium Enterprises Financing Development Finance Company of Uganda-(DFCU) Model Moses K.Kibirige Executive Director DFCU Ltd.-Uganda June 27th. 28th. Paris - France 1 Presentation Outline Location of Uganda Uganda Economic Indicators Uganda Financial Sector DFCU Headquarters Uganda Financial Sector Activities Commercial Banking Services Development Finance Products and Services Domestic Resource Mobilisation

Foreign Resource Mobilisation Foreign Sources of Funds Funding Challenges Funding Model Source of Technical Assistance 2 AFRICA-EAST AFRICA-UGANDA Europe Asia Med. Sea Africa Red Sea Atlantic Ocean

Uganda Kenya Tanzania Indian Ocean 3 Uganda Economy 2005/6 Economy based on agricultureCoffee, Cotton, Fish, Horticulture, Tourism etc. GDP = US $ 8.5bn with a growth of about 5.3%. Per capita income = US $ 250

Population = 27m External debt = US $ 4.9bn Inflation = Average 5.3% Land locked country 4 Uganda - Financial Sector

Bank of Uganda Central Bank-Regulator Commercial Banks 15 (Dfcu Group is 4th. Largest) Insurance companies - 16 Forex Bureau - 62 Non-Banking Credit Financial Institutions -7 Development banks -3 Microfinance Institutions 20 Villages banks/SACCOs

Capital Markets Authority (CMA) 1996 - Regulator Uganda Securities Exchange (USE) Stock Exchange 5 Uganda - Financial Sector-Activities 2005 Commercial Banks Foreign Assets = U.shs. 570.6bn Net domestic Assets = U.shs. 1999.5bn Deposits = U.shs.2,212bn Capital Markets Market capitalisation of USE was US $ 1,408 DFCU listed in 2004 and it is valued at US $ 67m. There are 6 listed companies

Insurance Services Modest growth Pension sector Source of long term investment To be liberalised Microfinance services Availability and outreach limited Mortgage There are two mortgage institutions including DFCU Leasing there are three main institutions including DFCU Treasury bill rate 91 days = 8% Interest rates 12% to 30% for shs. And 8% to 12% for US $ Exchange rate 1 US $ 1850 6

Who we are Established 1964 Shareholders Include: dfcu Group CDC (60%) - Britain Norfund (10%) - Norway NSSF (11%) Ugandas Pension Fund 4,000 other Private & Institutional Shareholders (19%) Development Finance dfcu Bank Listed on the Uganda Securities Exchange, October 14th, 2004. Sound, reputable shareholders, good brand, sound track record and respected Share price at listing shs.230/= October 2004 Share price currently shs.505/= June 2006

Leasing Mortgages Term Commercial Finance Banking 7 Commercial Banking Services Personal/Retail Banking Business Banking Wholesale Banking ATMs 8

Development Finance Services Leasing Long Term Finance Mortgage Microfinance 9 Products and Services Leasing 700 accounts Portfolio shs.39bn (US$ 21m) Mortgage 500 accounts-Portfolio shs.39bn (US $ 21m) Commercial Banking Portfolio shs.99bn (US $54m)

26,158 accounts Personal/Retail Business Banking Wholesale Banking Term Finance 200 accounts-Portfolio shs.72bn (US $ 38m) TOTAL PORTFOLIO SHS. 249 bn (US $ 134m) DFCU is the only single Financial Institution in Uganda that provides a range of financial services under one roof 10 Financial Highlights PAT attributable to Advances/Loans shareholders (UGX Billions)

(UGX Billions) 13.2 245 8.4 9.3 175 6.1 2002 2003 2004 2005

107 103 2002 2003 2004 2005 Dividend in 2005 is 40% of UGX 13.2 bn= UGX 5.2 bn (US $ 2.8m) 11 Domestic Resource Mobilisation Local Currency; Deposit from Customers for the Commercial bank

Equity Local Commercial Banks Borrowing Foreign sources in local currency EIB, Norfund Stock Market Bonds Guarantees Pension fund Borrowing Insurance Companies Borrowing Securitisation Government funds Government conducive environment 12 Foreign Resource Mobilisation Foreign Currency; Line of Credit Equity Guarantees Credit Risk Enhancement Technical Assistance Lenders priority-sectors

13 Foreign Sources of Funds PROPARCO-France IFC European Investment Bank FMO-Netherlands KfW-Germany OPEC FUND NORFUND-Norway DEG Germany AfDB Shell Foundation Kuwait Fund IDB Saudi Fund BADEA 14 Funding Challenges High cost of funds

Currency Restrictions Inappropriate tenor Sector Restriction Borrowers SMEs BDS providers Economy - status Environmental Risk 15 Funding Model Commercial Banking services Development Finance services Leasing, Mortgage and Long-term Funding Microfinance Line of Credit to MFIs DFCU- all banking services under one roof Technical Assistance needed for Dev. Fin. Government Working with it Funding Locally and Internationally Nationwide coverage Negotiating skills and techniques with financiers

16 Sources of Technical Assistance IFC/WORLD BANK European Investment Bank FMO-Netherlands Danida - Denmark Dfid - Britain USAID - USA NORFUND-Norway DEG Germany AfDB Shell Foundation IDB Beekeeper with a Bee hive Tech.Asst. for Capacity Building for Staff and SMEs YOU NEED TECH. ASST. FOR DEV. FINANCE

Prepare proposals in time with Development Impact 17 Thank you Thank youk Moses K. Kibirige [email protected] Kampala - Uganda 18

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