UDB unveils fund to accelerate import substitution, export sector

Uganda Development Bank has rolled out an initiative to support import substitution and promote the export sector.

The bank, whose mandate is to accelerate socio-economic development through sustainable financial intervention -- recently received funding to support an increase in the production of essential goods and services for import replacement and export promotion.

The government has committed Shs1 trillion to the Bank to help in recovering the economy.

So, the bank is now accepting applications from Small, Medium, and Large Enterprises that can support the aforementioned sectors to receive funding.

The funds will support businesses involved in agriculture, textile, pharmaceuticals, engineering among others, especially looking at those doing value addition.

To apply, the company should be registered in Uganda and owned by Ugandans. Exceptions will be made for companies that are "very strategic in terms of development impact".

Startups or existing companies looking to expand can apply. Owners are required to have 10% to 60% in the company, depending on the specifics of the project.

Some companies will have to provide collateral, depending on the risks associated with the project. "Other provisions in the Bank's credit policy shall apply," officials say.

Application of funding

Those applying the in the agriculture sector are expected to, among others, use the funds to acquire farm inputs, mechanisation equipment; improve farming methods; support general farm activities, e.g. constructing warehouses, drying racks, and so on.

For agro-processing applicants, the funds will be used to purchase necessary equipment, used as working capital to finance operations or purchase logistics fleet to facilitate marketing.

For those in the manufacturing sector, you can use the money to purchase machinery, construct a factory, purchase logistics to facilitate marketing among others.

Funding will be provided in the form of loans, asset financing, farmer group lending, private equity investment, working capital, and trade finance.

For those that don't need funding, UDB will help in project preparation and business advisory.

To apply, you will need documents showing resolution to borrow, articles & memorandum of association, certificate of incorporation, feasibility report/business plan, a copy of the last 2 years of audited accounts done by an ICPAU/BOU listed audit firm, bank statement for the last 12 months, loan statements for all existing loans, among others.

Applications are being accepted here.