Press Release

OPEC Fund extends line of credit to financial institution in Uganda

23/2006 March 21, 2006, Vienna, Austria
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An agreement for a US$5 million line of credit has been signed between the OPEC Fund for International Development and DFCU Ltd., a financing institution based in the Ugandan capital Kampala. 

DFCU is the leading provider of term debt and equity financing in Uganda, where long-term financing is in relatively short supply. In addition to development banking, DFCU recently established a major commercial banking arm, making it the fourth largest bank in Uganda. The line of credit will be used to on-lend, in the form of loans or leases, to eligible small and medium-sized businesses. In addition, the credit line will encourage private sector development, help generate additional employment opportunities and promote economic growth in general. 

The loan represents the OPEC Fund's second line of credit extended to DFCU. In addition, the Fund has been involved in development activities in support of the public sector in Uganda for over two decades. Substantial assistance has been directed towards project financing across the agriculture, health, national development banks and education sectors. In addition, the Fund has provided balance of payments support and financed commodity imports programs. One loan has also been approved to provide debt relief under the Heavily Indebted Poor Countries Initiative. Uganda has also benefited from grants that supported regional programs in the area of agriculture and energy, as well as one research grant that promoted income-generation activities in the agriculture sector. In June 2000, an agreement for the encouragement and protection of investment was entered into between the Fund and the government of Uganda. 

Today’s signing ceremony took place in Vienna. The agreement was signed on behalf of DFCU Ltd. by Mr. Willie Ogule, Corporation Secretary and Mr. Moses Kibirige, General Manager, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.