Uganda private-sector credit growth rises as Ecobank launches digital lending

Uganda is experiencing a surge in private-sector credit growth, which reached 16.1 percent in June 2026. According to the Bank of Uganda, this acceleration follows a decline in average weighted lending rates on shilling-denominated loans, which fell to 17.73 percent from 18.65 percent. Interest rate reductions were observed across several sectors, including agriculture, trade, transport, and housing.

In response to the need for accessible capital, Ecobank Uganda has introduced the Electronic Merchant Cash Advance (eMCA). This digital lending facility provides eligible merchants with up to Shs70 million in working capital based on their digital transaction history through POS terminals, web, and QR channels. The facility requires no physical collateral or paperwork, making it accessible to small and medium enterprises that may lack traditional assets like land titles. Eligibility is determined after a merchant establishes at least three months of transaction history, with limits set at up to 50 percent of average monthly digital collections.