EAC banks urged to finance skills, markets to drive industrial growth
KAMPALA, August 21, 2026 — dfcu Bank has called on commercial banks, regulators and central banks across East Africa to build a fully integrated financial ecosystem capable of unlocking capital at scale, strengthening industrial competitiveness and facilitating seamless cross-border trade.
Speaking at the annual Regional Industrialisation Conference convened by the Private Sector Foundation Uganda [PSFU] at Serena Kampala, dfcu Bank Chief Executive Officer Charles Mudiwa said traditional banking approaches centred largely on conventional commercial debt were insufficient to drive the region’s industrial transformation.
He said East Africa needs to broaden its understanding of capital beyond money to include market access, technical skills and capabilities that enable businesses to produce, scale and compete globally.
“Capital is far more than cash. Capital is market intelligence, knowing where, how and when to sell. Capital is also human capability, the technical skills and competencies needed to deliver value,” Mudiwa said.
He explained that emerging micro, small and medium-sized enterprises [MSMEs] require a structured, three-pronged intervention model combining technical production skills, financial literacy and patient capital.
To operationalise the model, Mudiwa said dfcu Bank has committed 1 percent of its annual net profits to the dfcu Foundation to create an interest-free catalytic fund. Under the arrangement, MSMEs receive risk capital and repay only the principal, alongside a minimal administration fee, shielding them from prohibitive interest rates.
He cited dfcu Bank’s interventions in agricultural value chains, including its support for cocoa growers in Kasese, alongside Rabobank under the SEED programme, to help them move into commercial chocolate production. He also cited school-based poultry initiatives as functional models for de-risking primary producers.
Mudiwa said the catalytic funding model was introduced to help businesses overcome financing constraints, scale their operations and access new markets. By providing affordable capital at low interest rates, the facility enables growth-stage enterprises to invest in expansion rather than being weighed down by high borrowing costs.
According to Mudiwa, the model demonstrates how dfcu can leverage capital to transform businesses beyond the constraints of traditional lending.
He said the bank is now scaling the initiative to help beneficiary enterprises transition from local production to regional and international export markets.
He said the framework embeds catalytic finance within a broader strategy aimed at building enterprise capacity, unlocking new markets and fostering long-term economic growth.
Meanwhile, PSFU Chief Executive Officer Stephen Asiimwe called for stronger coordination between governments and businesses to translate regional integration commitments into practical improvements in the business operating environment.
He emphasised the need to remove persistent barriers to the movement of goods, services, capital and people across EAC borders, arguing that private-sector competitiveness will remain constrained unless regulatory and logistical bottlenecks are addressed alongside financial reforms.
Asiimwe said reducing the time and cost of moving goods across borders should be treated as a competitiveness priority, noting that delays impose direct costs on businesses through higher transport expenses, financing charges and lost market opportunities.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
