Dutch bank, Rabobank Group has received permission from the Central Bank of Uganda to take a stake of 27.5% of the shares of ownership in the dfcu Bank, ranked 5th among the licensed commercial banks in Uganda. The partnership will be managed by subsidiary Rabo Development, which actively participates in 7 partner banks in developing markets. Through Rabo Development, Rabobank will provide technical and management assistance as well as expertise to the new partner bank and will be represented in the Board of Directors and in management.
Dfcu Bank was established in 1964 as development finance institution. The bank is the major asset of dfcu Limited, a financial holding listed on the local stock exchange (USE) since 2005. In terms of total assets, dfcu ranks 5th among the 26 licensed commercial banks in Uganda, with a market share in the region of 6%-7%. The bank employs around 600 staff. Dfcu offers a broad range of commercial bank services.
Berry Marttin, member of the Executive Board of Rabobank Nederland and responsible for Rabo Development stated, “Rabobank sees great potential in further developing the promising agricultural sector in Uganda, and significantly enhancing the participation of the banking population at the same time. Dfcu as partner bank in Uganda fits the cluster we are building with partner-banks in Tanzania, Zambia, Rwanda and Mozambique; it can have a positive impact on access to finance in rural Uganda, which reflects the essence of the Rabo Development initiative.”
Uganda provides attractive incentives for medium and long-term foreign investors. Dutch companies are active investors in Uganda in growth sectors such as dairy and meat, and Uganda is one of the largest coffee exporters in Africa. Mr. Juma Kisaame, General manager dfcu Bank , “The intention will be that with the collaboration and support of Rabo Development, dfcu will become a full-fledged retail bank with a rural orientation. We have set ourselves ambitious goals over the next five years, and with the support of Rabo Development, we are confident that we can attain them.”
