Multi-million-pound UK export finance deal to benefit Uganda

UK Export Finance (UKEF) has guaranteed a £5.29 million loan from the London Forfaiting Company (LFC) to Ugandan construction and consultancy firm IBBI, paving the way for the establishment of a granite quarry and asphalt production plant in Uganda.

This allows IBBI to purchase machinery, including an asphalt plant and granite crusher, through Rainbo, together with logistics services from Rainbo’s group company, Neba Freight Ltd.

The support was offered under UKEF’s Standard Buyer Loan Guarantee (SBLG) product.

The partnership between IBBI and Rainbo also secured a positive impact in Uganda. IBBI will use UK machinery to set up a granite quarry and asphalt production plant to enable infrastructure projects.

This follows IBBI’s growing track record as a provider of engineering consultancy services and construction works in their home country as well as in Kenya, Tanzania, DRC, Rwanda, and Burundi.

"From West Sussex to Uganda, this £5.29m deal demonstrates how UKEF support opens new export markets for British suppliers like Rainbo while driving economic growth at home. It reinforces the UK's position as the partner of choice for delivering transformative infrastructure projects that benefit communities across the globe,” Tim Reid, UK Export Finance CEO, said.

UK Minister for Africa, Lord Collins of Highbury described this partnership as a prime example of the UK's Africa Approach in action, demonstrating how British expertise and Ugandan ambition can team up to drive economic growth.

"The UK is building partnerships with African nations that are rooted in respect, are mutually beneficial and deliver real benefits for everyone."

Meanwhile, Steve Quigley, Managing Director at Rainbo, highlighted that partnering with UK Export Finance and LCA to support IBBI on this transaction has been instrumental in boosting UK exports, supporting economic growth, and creating valuable opportunities for UK manufacturers to supply goods and services.

“As a UK and International exporter, Rainbo is proud to contribute to development initiatives in Uganda and remains committed to delivering support and services to companies across Africa.”

LFC has been providing UK companies with financing solutions to support export sales since 1984. Partnering with UKEF, where LFC is the lender, enhances this core offering, enabling overseas buyers to access a loan facility to fund the purchase of UK goods and services.