Ugandan manufacturers expanding into regional markets are increasingly looking for faster and more reliable ways to move money across borders as they seek to grow their businesses beyond the domestic market.
For Mbale-based manufacturer, importer and exporter UKI Uganda Limited, delays in cross-border payments have been a challenge as the company expands its operations across East and Central Africa, particularly in the Democratic Republic of Congo (DRC).
The company is now working with Equity Bank Uganda to simplify payments, improve cash flow and support the growth of its distribution network in regional markets.
Equity Bank’s presence in Uganda, Kenya and the DRC is expected to make it easier for UKI to receive and transfer funds without relying heavily on third-party payment agents or several financial institutions.
The arrangement could help shorten settlement times and reduce some of the costs associated with cross-border transactions, allowing the company to access funds more efficiently.
Equity Bank Uganda managing director Gift Shoko said the bank’s regional network gives businesses an advantage as they expand their operations across African markets.
He said financial services that connect businesses across borders are becoming increasingly important as trade within Africa grows.
Olivia Mugaba, Equity Bank Uganda’s head of SME, said exporters can also use non-resident collection accounts to receive local sales proceeds in markets such as the DRC and transfer the funds to their home countries, subject to the applicable licences, regulations and other requirements.
For UKI, one of the key priorities is to make it easier for its customers in the DRC to pay directly for goods supplied by the company.
“Our customers in the DRC need a simpler way to pay for their supplies. Relying on local payment agents takes time and slows down business,” said Anant Kumar Manjithia, managing director of UKI Uganda Limited.
“We want to test a direct model where buyers in Congo can deposit funds into our account seamlessly, quickly and without extra charges.”
The company said the partnership with Equity Bank goes beyond payment services and includes customised financial solutions and capacity-building support for its wider business ecosystem, including distributors and employees.
For manufacturers operating across several countries, the ability to receive payments promptly can have a direct effect on day-to-day operations.
Faster access to sales proceeds can improve cash flow, support quicker replenishment of stocks and enable businesses to respond more quickly when demand increases in regional markets.
The development comes as businesses across Africa seek to take greater advantage of regional trade opportunities and the growing integration of African markets.
For Ugandan companies seeking to expand into neighbouring countries, finding customers is only part of the challenge. They also need dependable systems for receiving payments, paying suppliers and managing cash across different markets.
The UKI and Equity Bank arrangement illustrates how regional banking networks could help Ugandan manufacturers reduce some of the financial difficulties associated with cross-border trade.
As more businesses look beyond Uganda for customers and suppliers, efficient movement of both goods and money is likely to remain an important part of their ability to compete and grow.
