KAMPALA – dfcu Bank has urged commercial banks, regulators and central banks across East Africa to build a fully integrated financial ecosystem capable of unlocking capital at scale, strengthening industrial competitiveness and facilitating seamless cross-border trade.
Speaking at the Annual Regional Industrialisation Conference in Kampala, dfcu Bank Chief Executive Officer Charles Mudiwa said traditional banking models, which largely rely on conventional commercial debt, are insufficient to support the region’s industrial transformation.
Mudiwa argued that East Africa must broaden its understanding of capital beyond financial resources to include market access, technical expertise and the capabilities that enable businesses to produce, scale and compete in global markets.
“Capital is far more than cash. Capital is market intelligence—knowing where, how and when to sell. Capital is also human capability, the technical skills and competencies needed to deliver value,” he said.
He noted that Micro, Small and Medium Enterprises (MSMEs) require a structured three-pronged support model comprising technical production skills, financial literacy and patient capital to enable sustainable growth.
To support this approach, Mudiwa said dfcu Bank has committed one percent of its annual net profits to the dfcu Foundation to establish an interest-free catalytic fund. Under the initiative, MSMEs will receive risk capital and repay only the principal plus a minimal administration fee, reducing the burden of high borrowing costs.
He highlighted the bank’s support for agricultural value chains, including its partnership with Rabobank under the SEED programme to help cocoa farmers in Kasese transition into commercial chocolate production, as well as school-based poultry projects that de-risk primary producers and promote value addition.
Mudiwa also called on East African Community (EAC) partner states to accelerate the implementation of a common regional currency and harmonise cross-border banking operations, describing the measures as critical to regional economic integration.
He said a unified financial system would allow customers to open and operate bank accounts seamlessly across EAC member states under standardised Know Your Customer (KYC) requirements.
Uganda Bankers’ Association Executive Director Wilbrod Owor urged central banks and revenue authorities to establish real-time API linkages across national digital identity systems to enable instant cross-border KYC verification.
Meanwhile, East African Development Bank (EADB) Country Manager Francis Ogwang said manufacturers in the region require greater access to patient capital, blended finance and Export Credit Agency (ECA) financing with repayment periods of between eight and 13 years to lower the cost of capital and energy, boosting industrial competitiveness.
