Many banks in Uganda have less than 1% of their lending portfolio to the health sector HIPS will provide bank training to better understand the health sector, how it operates, etc HIPS can provide technical assistance to potential borrowers (health entitites – clinics, hostipals, pharma, manuf, etc) to prepare the for taking a loan. Already provided Financial management training, and direct TA. HIPS will link interested borrowers to the bank through workshops, association meetings, both in Uganda and regionally.
Health Initiatives for the Private Sector (HIPS) Enhancing Credit to the Health Sector May, 2012 HIPS Health Initiatives for the Private Sector Project
Health Initiatives for the Private Sector (HIPS)• USAID funded, implemented by Cardno Emerging Markets, 2007- March 2013• Works with the Uganda business community to find cost-effective ways to improve access and utilization of health services• Development Credit Authority is a USAID program that partners with Ugandan Banks to promote lending to the health sector
This program will…• Work with Ugandan Banks to develop loan products specific to the needs of the health sector• Provide technical assistance, via HIPS, to potential borrowers to improve their “bankability”• Link the Bank to potential borrowers• Loan will be based on current market rates and terms
What Banks are looking for in potentialborrowers…• Detailed information – current financial performance and projections for future expansion plans• Coherent strategy – based on realistic assessment of capabilities, customers, and competitors• Confidence in management – business-minded, knowledgeable about own business and broader market, understanding of risks, trends and opportunities• Clear organizational governance – clear policies and procedures (operational as well as clinical), segregation of responsibilities, board of directors, etc.
Next Steps• USAID approved the DCA (April 2012)• Ugandan Bank to finalize partnership with USAID (May 2012)• Official Launch of the DCA (June 2012)• Ugandan Bank accepts loan applications from potential borrowers (June 2012)
For more information contact:HIPS Project, Diana Konga atDiana.Konga@ UgandaHIPS.com THANK YOU! HIPS Health Initiatives for the Private Sector Project