Cetel-Stanbic Uganda

completed

This proposed investment involves the establishment of a risk sharing facility (the Facility) to Stanbic Uganda (the Bank) in collaboration with Celtel Uganda. The Facility is proposed to share risks in a portfolio of loans to the distributors (the Dealers) of Celtel products (air time, handsets etc). The risk sharing facility will help the Bank provide cash flow based financing to the Dealers to finance their working capital requirements. IFC will also implement a training and capacity building program to the Dealers in order to improve their management skills, corporate governance processes and therefore improve their risk profile as borrowers. The total loan portfolio is estimated to be up to Uganda Shillings 20 billion (equivalent $12 million) in size. This will represent IFC’s first risk sharing facility for SMEs involved in the Telecommunications sector in Uganda.