Uganda

Comprehensive support to CERUDEB

Project description

CERUDEB is an institution with savings banks features, which was founded by the Catholic Bishops’ Conference of Uganda. At the end of 1992, CERUDEB was awarded a banking licence. The technical assistance provided by the Sparkassenstiftung in cooperation with the Sparkasse Aachen (Aachen savings bank) empowered CERUDEB to develop into a profitable and target group-oriented credit institution, which is a model for Africa. CERUDEB extends small and micro loans to the poorer rural population and small entrepreneurs and craftsmen in Uganda. On behalf of the Sparkassenstiftung, a German consulting company developed and implemented a special IT-supported loan technology, tailored to the needs of CERUDEB’s target groups. Within a short period of time, a rotating credit fund provided by the BMZ was successfully launched and met a ready market.

With the help of the project, the consolidation of the bank was for the most part completed, as it was succeeded in decreasing the number of loans in arrears on the one hand, and finding various donor institutions (e.g. MISEREOR, SIDI, FMO, HIVOS/TRIODOS and IFC) that were willing to acquire equity holdings in the venture. At the end of 1996, CERUDED was able to report profits for the first time.

Services provided

• Introduction of small and micro loans
• Financial consolidation of the bank by decreasing loans in arrears and attracting new investors