By Shamim Saad
16 April 2016
The Uganda Investment Authority (UIA), in partnership with the Bank of Uganda, has intensified efforts to encourage small business owners, farmers, and entrepreneurs in Busia District to access affordable financing under the Small Business Recovery Fund (SBRF).
Through its Domestic Investment Division, UIA working alongside the central bank conducted a one-day sensitization workshop aimed at increasing awareness and uptake of the fund. The initiative is designed to support pandemic-affected businesses, boost local production, and accelerate industrialization.
Sarah Mubuuka, an official from the Administered Fund Department at the Bank of Uganda, noted that Busia was strategically selected for the outreach due to its low participation in the program.
“Since the funds were disbursed through commercial banks in Busia, only 72 business owners about 1%, have accessed them. In the wider Bukedi sub-region, only 23 beneficiaries have tapped into the facility,” she revealed.
The Small Business Recovery Fund targets enterprises employing between 2 and 49 people, with annual turnovers ranging from UGX 10 million to UGX 300 million. Eligible businesses can apply through commercial banks and microfinance institutions.
Mubuuka emphasized that the fund offers a competitive interest rate of just 10%, making it an attractive option for small enterprises seeking growth capital.
“This is affordable financing. Business owners should visit their banks, fulfill the requirements, and take advantage of this opportunity to expand their operations,” she advised.
She also cautioned borrowers against defaulting, highlighting a concerning trend among some cross-border traders.
“Some individuals borrow and cross into Kenya to avoid repayment, and others do the same in reverse. This is a bad practice. If you access these funds, ensure you repay according to your bank’s terms to avoid legal consequences,” she warned.
Meanwhile, Leslie Mutumba, an Investment Executive Officer at UIA’s Domestic Investment Division, encouraged entrepreneurs to register on the National SME Portal. He described it as a centralized platform that provides reliable business information and serves as a marketplace for Micro, Small, and Medium Enterprises (MSMEs).
“The SME portal is a one-stop center for formalized businesses to access timely information, connect with markets, and grow sustainably,” Mutumba said.
The campaign underscores the government’s commitment to empowering small businesses as a key driver of economic recovery and long-term development.
ENDS.
