MBARARA CITY, September 7, 2025 – – Absa Bank Uganda has launched a series of regional forums aimed at empowering small and medium-sized enterprises [SMEs] with financial knowledge and skills for sustainable growth. The forums, beginning in Mbarara, Masaka, and Fort Portal cities, are part of the bank’s broader strategy to extend support beyond the capital, Kampala.
According to Moses Rutahigwa, Absa’s Director of Retail and Business Banking, the initiative is designed to tackle the specific challenges faced by regional entrepreneurs. Conducted in partnership with organisations such as Uganda Airlines, DHL, Grant Thornton, and Enterprise Uganda, the programme targets SMEs with annual turnover of up to Shs 15 billion, recognised as the backbone of Uganda’s economy.
“Many of the challenges SMEs face are not unique to Kampala. By taking this initiative to the regions, we ensure entrepreneurs can access the knowledge, networks, and solutions they need to thrive,” Rutahigwa said.
He added that the forums aim to connect business owners with partners who can help expand their networks and unlock new opportunities.
Entrepreneurs call for accessibility and connectivity
The forums also provided a platform for entrepreneurs to directly engage with service providers. Fred Kafoko, a prominent businessman from Mbarara, urged Uganda Airlines to introduce domestic flights to ease regional travel for businesspeople.
“From Entebbe to Nairobi takes just 45 minutes, but it takes me four hours to travel from Mbarara to Kampala. What are you doing to help us fly from places like Mbarara to Arua or Kisoro?” he asked.
Kafoko also expressed concern about congestion and disorganisation at Uganda Airlines’ terminal in Dubai, urging improvements.
Betty Mbazira Kasabiti, founder of Awa Foods Uganda Ltd, appealed to Absa’s partners to open regional offices to reduce the cost and inconvenience of travelling to Kampala for services. She also highlighted the importance of involving family members in business to ensure sustainability.
“We spend a lot to access services in Kampala. I urge partners to establish regional offices,” she said.
“It’s also vital to involve our children and families in the business. Many enterprises collapse because the next generation is not prepared to carry them forward.”
Partner commitments and proposed solutions
Responding to concerns, Jude Kugonza from Uganda Airlines’ Commercial Department announced that domestic flights will begin in December 2026. This development aligns with preparations for the 2027 Africa Cup of Nations [AFCON], which Uganda will co-host.
“We’ve already conducted feasibility studies, and domestic flights will be operational before AFCON. This will also help open up new markets,” Kugonza said.
He encouraged entrepreneurs to form groups to access discounted fares.
“When businesses travel as an organised group, we can offer reduced ticket prices, helping them reach more markets affordably.”
Stella Xerenzy Atim, Absa’s Head of Enterprise Banking, noted that the forums help the bank gather feedback and adapt its products to client needs. She acknowledged common SME challenges, such as high lending costs and lack of collateral, and revealed that Absa now offers unsecured business loans of up to Shs 200 million.
“Formalising businesses and setting up proper structures makes them more attractive for financing,” she advised.
Atim also announced that Absa offers a 7 percent interest rate on SACCO deposits and is developing a dedicated SACCO loan product.
“We recognise the effort people are making to pool resources. Our upcoming SACCO product will provide both lending and collection support.”
Supporting Uganda’s economic backbone
Absa Bank has operated for over 130 years and is currently active in 10 African countries. The Absa Business Club, re-launched earlier this year, focuses on four pillars: access to markets, knowledge building, networking, and financial services.
According to the Uganda Investment Authority, SMEs account for 90 percent of private sector employment and contribute over 80 percent of Uganda’s GDP, emphasising the importance of initiatives like these in strengthening the economy.
https://thecooperator.news/absa-bank-uganda-earns-shs-546bln-revenue-in-2024/
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