Kampala, Uganda, 27th March, 2024 – According to the recently released Bank of Uganda monetary policy statement, Uganda’s economic growth is projected to perform at ranges of 5.5%-6.5% in the short-to-medium term premised on the projected activity in agriculture, the extractives sector, and infrastructure development. This growth prospect also points to an increasing demand for vehicles and equipment by Ugandan individuals to businesses which can only be fulfilled by collaborations between financiers, asset vendors, and independent leasing firms offering a suite of solutions that make vehicle acquisition more accessible.
In full recognition of the need for collaboration, Housing Finance Bank recently convened a vehicle and asset financing (VAF) partners’ forum that brought together various players in the VAF ecosystem such as CFAO Mobility, MAC East Africa, RentCo, SKENYA Motors, Pacific Diagnostics, Atlas Cargo, Double Q, Babu Motors, and Victoria Motors, and insurers such as CIC Insurance and SWICO. The forum aimed to share industry insights, best practices, and opportunities that can drive Uganda’s socioeconomic growth and prosperity.
This initiative is integral to the Bank’s ongoing commitment to serving business needs and cultivating partnerships that foster enterprise growth while enhancing customer satisfaction, with a target of exceeding 90% by 2027.
Led by a distinguished team comprising Mr. Michael K. Mugabi, Managing Director; Ms. Peace K. Ayebazibwe, Executive Director; and Angela Ndawula, Head of Business and Institutional Banking, alongside other senior executives, the Bank’s vehicle and assets financing forum provided an invaluable platform for comprehensive discussions on the effectiveness and impact of Housing Finance Bank’s suite of VAF solutions within the vibrant market potential for ecosystem partners, businesses, and consumers in the asset financing sector in Uganda.
During the forum, Peace Ayebazibwe, Executive Director at Housing Finance Bank noted that whereas the Bank is popularly known for its legacy mortgage solutions, it goes beyond to provide mainstream financial solutions within its scope as a fully-fledged commercial bank that includes VAF solutions implemented alongside strategic partners focused on respective productive movable assets in all the economic and social sectors.
“As asset vendors and insurers, you form an integral part of the delivery process of our Vehicle & Asset Financing (VAF) solutions as partners. And this is why we are intentional about engaging you directly on how we can enhance our collaboration to increase uptake and value in this space,” she said.
In his remarks, Michael Mugabi, Managing Director of Housing Finance Bank, reiterated the importance of partnerships and synergies for mutual business prosperity and socioeconomic development.
“Uganda’s positive economic growth outlook speaks to the huge opportunities for all of us as players in the vehicle and asset financing market. This will lead to an exponential increase in the uptake of our respective services by Ugandans since the demand for vehicles and equipment, financial services such as asset financing, and insurance in addition to auxiliary services is rising,” he said.
He also added that Housing Finance Bank is looking to utilize partnerships in the asset financing sector to advance the Bank’s Environmental, Social, and Governance agenda through working with ecosystem players within eco-friendly technologies, electric vehicles (Evs), and Hybrid Electric Vehicles (HEV) spaces.
Richard Elimu, Group Chief Executive at the Riel Group Africa, a dealer in pre-owned heavy commercial trucks, shared his perspective on the partners’ forum and highlighted Housing Finance Bank’s continued support to players in the asset financing sector.
“I would like to thank Housing Finance Bank because we have walked this journey of asset financing together for about ten years. And within this period, most of the customers I have referred to the Bank have gotten the facility they require for their assets. So, I request that Housing Finance Bank has more of these engagements. And also as suppliers, we should understand what the Bank needs so that they can take the customers through this process to ensure a smooth process with the Bank,” he said.
Housing Finance Bank remains steadfast in its ongoing efforts to create avenues for stakeholder engagement across the business community. These endeavors not only drive business growth but also make a lasting impact on Uganda’s socioeconomic development.
