Swedfund promotes inclusive finance in Uganda and Tanzania
Introduction
Swedfund, the Swedish development financier, invests USD10 million in Bayport Management Ltd ("Bayport”). The investment will improve access to financial services for people with low income, giving them the opportunity to get loans for, inter alia, education and housing.
The Swedfund investment will be via a subordinated loan provided to Bayport. Directed to the Bayport subsidiaries in Uganda and Tanzania, the loan will contribute to inclusive socioeconomic development in those two countries. Bayport’s services are directed towards people with low income with no or limited access to formal financial institutions. In addition to people who need funding for education, housing and emergency situations, Bayport’s customers include entrepreneurs and small enterprises.
Uganda and Tanzania are both indicated on the DAC list as two of the least developed countries in the world, and are therefore important areas for Swedfund, in its mission to eliminate poverty through sustainable investments.
People with low income in countries south of the Sahara have very limited access to loans. According to the World Bank, only 34 percent of the adult population have a bank account.
“Access to the formal financial systems is central in fighting poverty, and promoting job creation and inclusive economic growth,” says Anna Ryott, CEO of Swedfund.