Portfolio Review and Risk-Sharing Fund – Uganda

The assignment reviewed and strengthened the effectiveness of NUTEC-FS partner banks’ risk assessment techniques, innovative lending products, and risk-sharing fund arrangements for agribusiness micro, small, and medium enterprises in Uganda. Dr Bilal Ahmad led the assessment of product performance, risk assessment approaches, and strategies to expand lending to deeper agribusiness market segments, including the missing middle. Supported by the BAZ team during COVID-19 restrictions, the work included portfolio risk concentration analysis by product, geography, customer segment, gender, and value chain position; development of loan rescheduling and restructuring frameworks; expected loss analysis using probability of default and loss given default; review of credit risk management systems; assessment of the risk-sharing fund model; and recommendations for forecasting, managing, and reimbursing loan losses. The assignment also developed four loan products and detailed product programmes covering eligibility criteria, credit appraisal, repayment capacity assessment, credit processing, loan monitoring, and delinquency management.