Bank of Africa’s Managing Director, Mr. Arthur Isiko, has tipped various Small and Medium Enterprises (SMEs) on how to access finance as a key aspect for sustainable business growth.
Mr. Isiko (pictured above) was speaking at a business forum hosted by the Bank at Tick Hotel in Kawempe Division. This forum, which is a first of many that BOA plans to host across the country, brought together various SME business drivers from key sectors namely; Construction, Education, Agriculture, Trade and Commerce.
Delivering his remarks, Mr. Isiko advised on the various financing options available to SMEs including debt and equity investments. He highlighted the need for banks to work with SMEs to structure their businesses so as to optimize benefits from the various financing options. “Granting credit is only one of the services which banks provide to SMEs. We as a bank should most importantly work with SMEs to ensure that you can access the appropriate form of financing.” Mr Isiko said.
He explained, “Cash flows are the lifeline of the business. SMEs should first establish and understand their cash flow trends and cycles, then banks will be in a better position to advise on how best any identified cash flow gaps can be bridged.” Bank of Africa’s Head of SME, Mr. Jonah Wanda, while addressing the attendees focused on the innovative products and services the Bank has developed to meet the various needs of entrepreneurs.
“As more focus is placed on supporting Ugandan businesses, Bank of Africa launched an SME product that focuses on financing short and medium term needs of these establishments. Our proposition emphasizes speed of service delivery as we meet the needs and ambitions of our clients. The Bank’s SME proposition available includes; a Bid Guarantee facility, an Invoice Discounting facility, Business loans and an Asset Finance facility.” Wanda said.
During the SME Business forum, most attendees highlighted access to business financing and product marketing as key challenges facing SMEs in Uganda in the current economic environment. Bank of Africa’s commitment to the SME segment is driven by the recognition that SMEs are the engine of economic growth as they collectively constitute about 90% of private sector production and employ more than 2.5 million people according to the recent National Small Business Survey of Uganda. *SPONSORED*
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