Guarantees and Bonds

Delivering on your contractual obligations has never been easier

Overview

Delivering on your contractual obligations has never been easier. With the BANK OF AFRICA guarantees and bonds offer, you are provided with support along each step of performing your contractual obligations.

Discover our guarantee offering below.

ANNUAL LIMITSAnnual financing limits available to reduce delays in processing of your recurring guarantee requests

UGX 200M UNSECURED BIDSAccess bid bonds up to UGX 200 Million unsecured

WORKING CAPITAL SUPPORTImprove contract terms with your employer and ease pressure on your working capital

MULTI-CURRENCYAccess multi-currency guarantee options

FULL CONTRACT CYCLEAccess affordable guarantees for your full cycle from tendering to contract hand over

FAST ProcessingThere when you need it. No delays. Same day processing for bid bonds

Discover Our Guarantee Offering

A bid bond is a type of surety bond issued by BANK OF AFRICA in favor of requesting entities guaranteeing that the bidder will accept the project or contract and complete it according to its terms.

Is your business applying for a tender to supply services or goods? Call us today to enjoy the following benefits.

Get unsecured bid bonds of up to UGX 200 Million
Enjoy our affordable pricing
Same-day processing for bid bond applications.
Same-day for guarantee verification to employers.
Annual limits available to you

An advance payment guarantee is a written document issued by BANK OF AFRICA at the request of a customer to the owner of a contracted construction or the buyer of a sales deal, guaranteeing the applicant will fulfill the contractual obligations after the owner or the buyer makes advance payment.

This guarantee facilitates the timely receipt of advance payment from an employer, as well as speed up working capital to enable the supplier to deliver services or goods in a timely manner.

A retention guarantee is a written document issued to the owner or the buyer by BANK OF AFRICA to guarantee that a supplier will continue to fulfill the agreed contract obligation after withdrawing the final payment of the contract price in advance.

A retention guarantee provides reassurance to the employer of the quality of the works delivered by a supplier. Consequently, rather than withhold a percentage of the contract value, an employer will request a supplier to provide a retention guarantee giving the employer assurance that the supplier will carry out all necessary work to correct any structural defects discovered immediately after completion of the project as well as during the maintenance period in line with the contractual obligations.

In the event of a defect arising on the works or goods delivered within a stipulated period, BANK OF AFRICA will pay the retention amount to the owner or the buyer of the goods or services.

A supplier guarantee is a written document issued to a supplier by BANK OF AFRICA to guarantee that a buyer will make payments for all goods supplied within the period covered in the guarantee.

This guarantees the supplier will have payment for goods supplied and that the buyer will have a seamless supply of goods annually without having to go through a new application process for every purchase order.

BOA provides quick, affordable, and assured guarantees each year supporting our customers across multiple sectors including but not limited to trade, construction, services, mining, oil and gas, agriculture, and manufacturing.

Download our services and products pricing guide for more information.

General Business Credit Application Requirements

- Fully filled in guarantee loan application form (Available at a branch, on email or delivered to your office)
- Copy of advert or request for bids
- Copy of bidding documents or contract documents (if awarded - advance payment, retention and performance guarantee applications)
- Evidence of previous contracts executed
- Financial credit bureau card for the borrowing entity
- Business bank statements for past 12 months
- Business financial statements, including and income statement, balance sheet and cash flow
- Passport size photograph of each director
- Copy of valid identification card of each director
- Valuation report for the property / assets to be pledged as collateral (where applicable or requested by the Bank)
- Business plan and an updated business profile
- Tax identification number (TIN) and tax clearance certificate
- Formal written request stating the amount, purpose, tenor, source of repayment and proposed security (where applicable)
- Board resolution to borrow (For limited, partnership companies)
- Trading license
- Any other information as may be requested by the Bank, depending on the nature of the request. Our Relationship Management team will guide you on the process