The Ministry of Finance in conjunction with Bank of Uganda and the Uganda Bankers Association have launched Shs 200 billion recovery fund for small and medium enterprises affected by Covid-19.
Speaking at the launch on Tuesday, the minister of Finance Matia Kasaija said that the fund will assist Ugandan’s business community with affordable credit to recover from effects of Covid-19.
Kasaija said that the fund is affordable, timely and comes at a time when several SMEs are trying to recover from effects of the Covid-19 pandemic.
“All small businesses operated by individuals, groups,partnerships and companies employing 5-49 people, and with annual turnover of Shs 10 million to Shs 100 million are eligible under this fund,” Kasaija said.
“The maximum loan amount will be Shs100 million at interest rate of not more than 10 percent per annum.”
Kasaija said participating financial institutions will match the government’s initial amount of Shs 100 billion meaning they will have to find with another Shs 100 billion to bring the total to Shs 200 billion.
He said that the Bank of Uganda shall administer the fund on behalf of the Government.
Ramathan Ggoobi, who is the Permanent Secretary in the Ministry of Finance said the goal of the fund is to enhance the capability of small businesses to recover and resume operations at the levels they were before Covid-19.
“I therefore wish to call upon the general public to utilise this intervention for production and economic activities as we take the precautionary measures to overcome the pandemic,” Ggoobi said.