KAMPALA — Pearl Bank’s loan book has crossed the UGX1 trillion mark, up from UGX749 billion at the end of December 2025, as the lender expands financing to agriculture, businesses and other productive sectors.
The milestone represents an increase of about UGX251 billion in eight months, reflecting the bank’s strategy to grow its market share while directing more credit towards sectors considered critical to Uganda’s economic transformation.
Agriculture and agro-industrialisation account for about 35% of Pearl Bank’s loan portfolio, while nearly half of the bank’s lending is aligned with priority sectors under National Development Plan IV and the government’s Tenfold Growth Strategy.
“We set ourselves the ambition of doubling our market share and then developed products that could help us scale quickly. Agriculture and agro-industrialisation have been particularly important, supported by disciplined execution across the Bank,” said Martin Mugisha, Executive Director – Operations at Pearl Bank.
The bank has increased lending across agricultural production, processing and related value chains, while expanding financing for micro, small and medium enterprises, trade, logistics, construction and other businesses.
Pearl Bank said partnerships with government and development finance institutions have also helped it expand credit by lowering the cost of funds and sharing lending risks.
Among its partners are the Government of Uganda, Bank of Uganda’s Agricultural Credit Facility, Aceli Africa, aBi Finance and the Agence Française de Développement.
“The biggest constraint to private-sector credit remains the cost of borrowing. Partnerships allow us either to reduce the cost of funds or share some of the lending risk,” Mugisha said.
“That enables us to lend more affordably and sustainably, particularly to agriculture and SMEs where financing gaps remain significant,” he added.
The UGX1 trillion milestone is part of Pearl Bank’s 2024–2028 strategy, which targets sustainable financial inclusion and increased entrepreneurship and enterprise development.
The bank plans to deepen lending to agriculture while increasing financing for tourism, construction, minerals and other long-term investments supporting Uganda’s Agriculture, Tourism, Minerals and Science and Technology (ATMS) agenda.
However, the bank says expanding such lending will require greater access to long-term capital to match the investment periods of the sectors being financed.
“We are still on the journey towards doubling our market share. The next phase will require stronger local and international partnerships and, critically, more long-term capital,” Mugisha said.
“That will allow us to finance longer-term investments without creating liquidity mismatches while keeping onward lending affordable,” he added.
Pearl Bank is also pursuing financial inclusion through digital platforms and its agency network, reducing reliance on opening additional physical branches.
The bank currently operates 59 branches and more than 8,000 agents across Uganda, supported by the Pearl Bank App, Pearl Online and smart ATMs.
The lender, formerly known as PostBank Uganda, was established as a commercial bank in 1998 after evolving from the Post Office Savings Department, which began operations in 1926.
The Government of Uganda owns 100% of Pearl Bank, which has positioned itself around the goal of expanding access to finance while supporting enterprise growth and economic activity.
With its loan book now above UGX1 trillion, the bank’s next challenge will be sustaining that growth while ensuring increased lending reaches businesses and productive investments capable of generating jobs, incomes and wider economic activity.