The European Union Delegation in Uganda, in partnership with the United Nations Capital Development Fund (UNCDF), has introduced an ambitious initiative named Support to Agricultural Revitalization and Transformation (START) Phase II. Announced through a press release dated March 12, this initiative marks a significant investment of EUR 11.5 million (UGX 48.9 billion) co-financed by the European Union, aiming to catalyze economic growth, promote job creation, and drive sustainable development within the country.
Building upon the achievements of START Phase I, which provided over 50 Small and Medium Enterprises (SMEs) with concessional loans and reimbursable grants totaling Shs13.5 billion, thereby creating markets for over 120,000 farmers, START II aims to expand its impact across Uganda. The primary objective of this phase is to address the substantial challenges faced by agribusiness SMEs in accessing financing for their expansion and growth.
Central to START II’s strategy is the promotion of value addition and agro-processing, achieved through providing agribusiness SMEs with access to affordable medium-term financing. This support aims to facilitate the expansion of their operations while prioritizing the adoption of environmentally friendly practices and promoting inclusivity, especially for vulnerable groups and women-led enterprises.
An integral aspect of the initiative is its commitment to allocating 30% of its resources towards promoting gender equality and supporting green SMEs. Sophie De Coninck, Head of Uganda Office at UNCDF, emphasized the critical role of the START Facility in unlocking the potential of agribusiness SMEs, aiming to drive sustainable growth, job creation, and economic resilience in Uganda.
Jan Sadek, European Union Ambassador to Uganda, reiterated the EU’s dedication to fostering sustainable growth and prosperity in Uganda. Through collaboration with UNCDF, the EU aims to empower agribusiness SMEs and create an environment conducive to economic resilience and job creation.
To ensure effective implementation and maximize impact, START II will collaborate with various stakeholders, including financial institutions, private sector foundations, government bodies, and international organizations. Key partners involved in the implementation of the START facility include the Private Sector Foundation Uganda (PSFU), Federation of Small and Medium Enterprises (FSME), Aceli Africa, and the Uganda Development Bank Limited (UDB).
Given the pivotal role of micro, small, and medium enterprises (MSMEs) in Uganda’s private sector and development, particularly in employing around 2.5 million people, the challenges hindering their growth potential must be addressed. Agribusiness SMEs interested in participating in the START facility are encouraged to apply through the online portal: https://www.start.go.ug/. The portal will remain open throughout the year, demonstrating a sustained commitment to driving sustainable agribusiness growth in Uganda.
