Crawley business Rainbo Supplies & Services will deliver machinery to Uganda following a deal backed by UK Export Finance and funded by London Forfaiting Company…reports Asian Lite News
West Sussex business Rainbo will supply and deliver millions of pounds in machinery to Uganda following a deal supported by UK Export Finance (UKEF) – the government’s export credit agency.
UKEF has guaranteed a £5.29 million loan from the London Forfaiting Company (LFC) to Ugandan construction and consultancy firm IBBI. 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.
This deal showcases how the government’s Plan for Change is delivering tangible economic benefits to British businesses. By providing a loan guarantee to IBBI, UKEF helped secure a multi-million-pound export contract for Rainbo.
As a result of their new partnership with IBBI, Rainbo has added four new roles at its Crawley office, bringing their total UK workforce to 34.
Minister for Africa, Lord Collins of Highbury, said, “This partnership is 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.”
The new contract will also bring benefits across the UK supply chain, as Rainbo’s suppliers are based on locations including Leicester, Slough and Doncaster.
The partnership between IBBI and Rainbo also secures a positive impact in Uganda. IBBI will use the UK machinery to set up a granite quarry and asphalt production plant to enable infrastructure projects in the East African country. This follows IBBI’s growing track-record as provider of engineering consultancy services and construction works in their home country as well as in Kenya, Tanzania, DRC, Rwanda, and Burundi.
Tim Reid, UK Export Finance CEO, said, “From West Sussex to Uganda, this £5.29 million 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.”
Steve Quigley, Managing Director at Rainbo, said, “Partnering with UK Export Finance and LFC 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.”
Paul Wright, Head of UK Marketing at London Forfaiting Company (LFC) said, “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. LFC is delighted to close this facility with Rainbo and IBBI which both supports UK Exports and economic and social development in Uganda. LFC offers UKEF supported facilities up to c. GBP30m where access to finance can be highly challenging for the SME sector.”
By working with non-bank lenders like LFC, UKEF is increasing the range of flexible financing which it can offer to smaller businesses, reducing missed opportunities for exporting and promoting growth under the government’s Plan for Change. Over the last financial year, UKEF provided a record £14.5 billion in new financing, helping over 667 UK companies to export and grow and supported up to 70,000 jobs.
