Uganda court decision rattles East Africa’s syndicated loans market

DTB-UGANDA

DTB Centre, Home to DTB Bank, Uganda in Kampala. PHOTO | MORGAN MBABAZI | NMG

East Africa’s nascent syndicated loan markets have been upended after a Ugandan High Court declared cross-border lending illegal if done without the permission of the Central Bank.

The development could freeze an estimated $130 million worth of intra-EAC lending and undermine the on-going regional financial integration process.