Success Stories

Helping More People in Uganda Own Homes

IFC recently partnered with three of Uganda’s leading banks to launch a program that will create more opportunities for Ugandans to own homes.

Under the IFC Uganda Primary Mortgage Market Initiative, IFC will provide partial credit guarantees and advisory services to local banks, helping them increase their home loans. It will also work to improve Uganda's regulatory environment for mortgages.

Three of the country's major banks are initial participants: DFCU Limited, Orient Bank and Stanbic Bank. IFC has signed agreements to advise them on developing and implementing standard mortgage products, origination and servicing policies, and industry guidelines. Other banks are expected to join later.

IFC will partially guarantee loans made by Uganda’s National Social Security Fund to the three participating banks to help them increase mortgage lending, under the program. While the credit guarantees have not yet been finalized, NSSF expects to lend the banks a total of $40 million, with IFC guaranteeing $10 million of the amount.

IFC will also work with key stakeholders in Uganda to address legal and regulatory constraints to the growth of mortgage lending and investing. Efforts will include implementing tax incentives to promote home ownership, helping increase securitization of mortgages in the secondary market, and raising the standards that banks use to appraise homes.

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