MICROCAPITAL BRIEF: UNCDF, EU, Private Sector Foundation of Uganda, Uganda Development Bank Financing SMEs via “Support to Agricultural Revitalization and Transformation” (START) Program

The UN Capital Development Fund (UNCDF), the EU, the Private Sector Foundation of Uganda and the Uganda Development Bank recently launched the Support to Agricultural Revitalization and Transformation (START) program to finance small and medium-sized enterprises (SMEs) involved in agriculture in northern Uganda. The goals of the program include addressing the underrepresentation of women entrepreneurs as well as to “consolidate stability in Northern Uganda, eradicate poverty and under-nutrition, and strengthen the foundations for sustainable and inclusive socio-economic development.”

From May through July 2018, START has interacted with approximately 1,120 new customer prospects at launch events across northern Uganda. In particular, the program is seeking agricultural companies with needs in the “missing middle” between the smaller microloans and larger loans associated with traditional banking services. START loan sizes range from EUR 10,000 (USD 11,700) to EUR 100,000 (USD 117,000). In addition to financing, START is educating entrepreneurs on topics such as how to get information about market supply, cash projections, agricultural developmental impact and increasing awareness of the challenges women face when entering agribusiness in Uganda.

UNCDF, which was founded in 1961, works to deliver poor people in the world’s 47 least developed countries “capital and technical support through Inclusive Finance programmes to ensure that more households and small businesses gain access to financial services.” During 2017, UNCDF supported 138 financial service providers that achieved a net increase of deposits of USD 6.5 billion.

As of 2018, the Private Sector Foundation of Uganda, which was established in 1995, draws support from approximately 200 “business associations, corporate bodies and the major public sector agencies that support private sector growth.”

Founded in 1972, the Uganda Development Bank is owned by the government of Uganda and works with SMEs in sectors such as infrastructure development, industrialization and agriculture.

By Michelle Fleming, Research Associate

Sources and Additional Resources

UNCDF: UNCDF completes the launch of the START facility across Northern Uganda
http://www.uncdf.org/article/3904/uncdf-completes-the-launch-of-the-start-facility-across-northern-uganda

Private Sector Foundation of Uganda: START background
https://www.psfuganda.org/start-facility/

Private Sector Foundation of Uganda background
https://www.psfuganda.org/who-we-are/

UNCDF background
http://www.uncdf.org/who-we-are

Uganda Development Bank background
https://www.udbl.co.ug/about-us/

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