UDB, EU earmark shs1bn grants and loans to help tourism sector back on its feet

Uganda Development Bank (UDB) with the European Union have announced one billion Uganda shillings worth of grants and soft loans for eligible businesses in the tourism sector.

The grants and loans come with flexible terms aligned with the current needs of the sector.

State Minister for Tourism Martin Mugarra Bahinduka explained that the facility is intended to give operators access to working capital to fast track recovery from the Covid-19 effects on the economy.

Bahinduka noted that the loans and grants will enable tourism operators to increase their capacity to handle the growing tourist traffic in the country locally and from abroad.

He added that, "Uganda like other countries, sanctioned travel restriction within and out of the country. The travel restriction and Standard Operating Procedures contributed to a severe contractions of business opportunities and viability of business resulting in closure for some and eventual loss of jobs.

The tatal facility is over 62 billion uganda shillings, made up of 40 billion shillings ring fenced funds from UDB and complemented by a grant of 21.8 billion from the European union.

Under this facility, only customers that qualify for the loan will be eligible for the grant.