By Johannah Nantongo
KAMPALA, Uganda — In Uganda’s largely agrarian economy, where farming remains the backbone of livelihoods, a state-owned lender is gaining attention for reshaping how financial institutions engage with rural enterprise. Pearl Bank, previously known as PostBank Uganda, has been recognized for its leadership in agricultural financing, underscoring a strategic shift toward supporting small- and medium-sized agribusinesses.
At the recent Uganda stakeholder roundtable hosted by Aceli Africa, Pearl Bank received the Best Agri-SME Lender award. Julius Akais, the bank’s supervisor for agriculture and partnerships, was also honored as Agri-SME Lending Champion. The event brought together officials from the Bank of Uganda and representatives of the Uganda Bankers Association, highlighting growing collaboration across the financial sector to strengthen agricultural lending.
Targeting the “Missing Middle”
Agriculture employs a majority of Ugandans, yet for years many commercial banks viewed the sector as high-risk due to weather variability and price fluctuations. Pearl Bank has moved in the opposite direction, positioning itself as a key financier for enterprises often described as the “missing middle” — businesses too large for microfinance but too small to secure traditional commercial loans.
Since 2020, the bank reports that its agricultural loan portfolio has grown by approximately 180 percent. Much of that expansion has come through tailored seasonal working capital products and participation in government-backed initiatives such as the Agriculture Credit Facility. These mechanisms are designed to lower risk while extending credit to farmers and agribusinesses previously excluded from formal banking.
Managing Director Julius Kakeeto has described the strategy as both commercially sound and nationally significant, emphasizing support for rural entrepreneurs, climate-smart farming practices, and scalable agricultural ventures.
Broader Sector Momentum
The recognition also marks the close of Aceli Africa’s first five-year engagement in Uganda. Since launching operations in the country in 2020, the organization has partnered with 19 financial institutions, facilitating more than $100 million in lending across roughly 1,500 loans. The financing has supported hundreds of thousands of smallholder farmers and stimulated substantial spending on crop purchases and wages nationwide.
Notably, about half of the loans enabled borrowers to access financing above $25,000 for the first time — a level widely considered transformative for expanding farm operations and strengthening agribusiness supply chains.
Rebranding With Purpose
Pearl Bank’s recent achievements align with a broader institutional transformation. The lender’s transition from PostBank Uganda to Pearl Bank reflects a repositioning effort aimed at modernizing its image and aligning with digital innovation and sustainability priorities.
The bank has also obtained sustainability certification from the European Organization for Sustainable Development, reinforcing its stated commitment to balancing financial inclusion with environmental responsibility.
With 59 branches and an agent network exceeding 8,000 outlets nationwide, Pearl Bank is extending its reach from urban centers to remote agricultural regions. Its leadership maintains that long-term success depends on the vitality of Uganda’s farming communities — a belief increasingly reflected in its lending portfolio and national recognition.