Overview:
The second phase of the facility, which will run from January 2023 to December 2027, aims to scale up efforts from the first phase, which was implemented exclusively in northern Uganda.
KAMPALA, UGANDA – The United Nations Capital Development Fund (UNCDF) has launched the second phase of the Support to Agricultural Revitalization & Transformation (START) facility, a blended finance initiative aimed at promoting sustainable agribusiness in Uganda.
The START facility, which was first introduced in 2017, provides affordable medium-term finance and business development services to agribusiness Small and Medium-sized Enterprises (SMEs) to enhance value addition and agro-processing. The second phase of the facility, which will run from January 2023 to December 2027, aims to scale up efforts from the first phase, which was implemented exclusively in northern Uganda.
The facility is designed to support agribusiness SMEs to access affordable medium-term finance in the form of grants, concessional and commercial loans, and to adopt sustainable business practices and operations, including the adoption of digital solutions. The START facility will also provide business development services and facilitate the development of bankable investment proposals grounded in green and circular economy principles.
The key results of the facility include strengthening institutional capacity of agribusiness SMEs and Financial Institutions, improving technical capacity of agribusiness SMEs, and unlocking affordable medium-term finance for agribusiness SMEs in value addition and responsible agro-processing.
The START facility is implemented by UNCDF with financial support from the European Union (EU) and will be implemented over a period of five years. The facility is open to applications from agribusiness SMEs across all regions of Uganda.
According to UNCDF, the second phase of the START facility will build on the successes of the first phase and aim to address the challenges of access to finance for agribusiness SMEs. The facility is expected to promote growth and job creation in the agribusiness sector, while also contributing to the development of a sustainable and resilient food system in Uganda.