VIII. Trade and Project Financing A. Brief Description of the Banking System Uganda's formal financial system is small in terms of the value and the volume of transactions undertaken. It is also not very diversified in terms of the type of transactions which it undertakes. The system includes the Bank of Uganda (BOU -- the central bank), fifteen commercial banks, and two development banks. In addition, there are a number of non-bank financial institutions, including one active building society, six credit institutions, 21 insurance companies, a pension fund, and approximately 50 foreign exchange bureaus. A formal interbank market was established in November 1993. B. Foreign Exchange Controls Affecting Trading There are no exchange controls on current payments and capital inflows. Capital outflows must be approved by the exchange control department. C. General Financing Availability General financing is available through commercial banks and credit institutions. The interbank market avails dealers with sufficient foreign exchange to finance industrial imports and fuel imports at competitive exchange rates. Supplier credits are also used, i.e., importers may accept credit to facilitate authorized transactions. D. Financing Exports/Methods of Payment The Bank of Uganda (Central Bank) provides export credit guarantee schemes which can be used through commercial banks. Letters of credit and other standard instruments are also used. E. Types of Available Export Financing and Insurance Eximbank makes loans in Uganda, but only private loans covering the short and medium term. Eximbank also can provide export financing insurance. F. Project Financing Available Multilateral institutions active in Uganda include the World Bank and the African Development Bank, as well as European Union institutions. Projects are concentrated in infrastructure, health and education. 1. The International Bank for Reconstruction and Development (IBRD), a member of the World Bank group makes long-term loans at market- related rates primarily to developing nations. The International Development Agency (IDA), the soft loan window of the World Bank, lends to the poorest of the development countries. Both the IBRD and IDA work to promote broadly based economic growth and frequently focuses on structural adjustment, sectoral reform and individual project lending and operate under the same set of procurement guidelines. Typically the World Bank does not finance the entire cost of a project. Rather, it finances the components of a project purchased with foreign exchange, which on average is about 40 per cent of the total project cost. Each project may cover a wide variety of sectors and can involve anywhere from one to hundreds of separate contracts providing export business opportunities for suppliers worldwide. CONTACTS: U.S. Department of Commerce Liaison to the U.S. Executive Directors Office International Bank for Reconstruction and Development 1818 H. St., NW Washington D.C. 20433 Tele: (202) 458-0118 Fax: (202) 477-2967 Office of Multilateral Development Banks U.S. Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927 2. The African Development Bank (AFDB), headquartered in Abidjan, Cote d'Ivoire, is an international financial institution created by Africans in 1963 to promote the economic and social development of its member African countries. Founded with initial capital resources of USD 250 million, it has authorized capital today of over USD 22.3 billion. The bank belongs to the African Development Bank Group (ADBG) which also includes the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). The AFDB makes loans to development projects in 51 countries in Africa. The ADB provides development financing on concessionary terms to the poorer African member countries. The NTF was established by the Government of Nigeria in 1976 to assist in the development efforts of the poorer ADB members. The ADFB has 21 non-regional members. The United States joined in 1982. CONTACTS: U.S. Department of Commerce Liaison Office to the U.S. Executive Directors Office African Development Bank Ave. Joseph Anoma 01 B.P. 1387 Abidjan 01, Cote D'Ivoire Tele: (225) 21-46-16 Fax: (225) 22-24-37 Office of Multilateral Development Banks U.S. & Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington, D.C. 20230 Tele: (202) 482-3399 G. Banks with Correspondent U.S. Banking Arrangements Banks in Uganda which have correspondent U.S. banks include: Bank Correspondent U. S. Bank Uganda Commercial Bank Citibank, New York Cooperative Bank Chemical Bank, New York Gold Trust Bank Citibank, New York Greenland Bank Citibank, New York Nile Bank Citibank, New York International Credit Bank Ltd. American Express Bank Barclays Bank (U) Ltd Barclays Bank PLC, New York Bank of Baroda Chase Manhattan Bank, New York Stanbic Bankers Trust, New York Standard Chartered Bank Standard Chartered, New York Sembule Investment Bank Citibank, New York