By THE INDEPENDENT UG
Kampala, Uganda | THE INDEPENDENT | The European Union Delegation in Uganda, together with the United Nations Capital Development Fund (UNCDF), unveiled an ambitious initiative aimed at fostering sustainable agribusiness growth across Uganda, they said in a press release dated March 12.
The launch of the Support to Agricultural Revitalization and Transformation (START) Phase II signals a significant investment of EUR 11.5 million (UGX 48.9 billion) co-financed by the European Union. This initiative underscores a strategic approach to catalyze economic development, spur job creation, and drive sustainable growth within the country.
Following the success of START Phase I, which saw over 50 SMEs receiving Shs13.5 billion in concessional loans and reimbursable grants, thus creating markets for over 120,000 farmers, START II is poised to expand its footprint across Uganda.
The primary aim of this phase is to address the considerable hurdles faced by agribusiness SMEs in accessing financing for their expansion and growth.
START II will concentrate on promoting value addition and agro-processing by providing agribusiness SMEs with access to affordable medium-term financing.
This support is geared towards facilitating the expansion of their operations while prioritizing the adoption of environmentally friendly practices and inclusivity, particularly for vulnerable groups and women-led enterprises.
Notably, the initiative has committed to allocating 30% of its resources towards promoting gender equality and supporting green SMEs.
Sophie De Coninck, Head of Uganda Office at UNCDF said, “The launch of the START Facility is a critical milestone in unlocking the potential of agribusiness SMEs in Uganda. By addressing the financing gap and enhancing technical capabilities, we aim to drive sustainable growth, create jobs, and foster economic resilience in the country and beyond.”
Jan Sadek, European Union Ambassador to Uganda, echoed similar sentiments, saying, “Cultivating sustainable growth and prosperity in Uganda remains a top priority for the European Union. Through our continued collaboration with the United Nations Capital Development Fund, we are committed to empowering agribusiness SMEs and fostering an environment conducive to economic resilience and job creation.”
To ensure effective implementation and maximize impact, START II will collaborate with various stakeholders, including financial institutions, private sector foundations, government bodies, and international organizations.
Key partners involved in the implementation of the START facility include the Private Sector Foundation Uganda (PSFU), Federation of Small and Medium Enterprises (FSME), Aceli Africa, and the Uganda Development Bank Limited (UDB).
With approximately 1.1 million micro, small, and medium enterprises (MSMEs) employing around 2.5 million people in Uganda, these businesses play a crucial role in the country’s private sector and development. However, challenges such as poor management, lack of records, collateral, and capital hinder their growth potential.
Agribusiness SMEs interested in participating in the START facility are encouraged to apply through the online portal: https://www.start.go.ug/. The portal will remain open throughout the year to receive applications, signaling an ongoing commitment to driving sustainable agribusiness growth in Uganda.
Discussion about this post