Government Launches Recovery Fund For SMEs Affected By Covid-19

Posted by: Kyeyune Andrew Jonathan in Finance November 24, 2021

The Ministry of Finance has joined hands with the Bank of Uganda and the Uganda Bankers Association to launch a recovery fund for SMEs.

The bodies launched a shs 200 billion to pull back afloat small and medium enterprises that were affected by Covid-19.

During the launch on Tuesday, Matia Kasaija said the recovery fund will assist Uganda’s business community with affordable credit. This will help them recover from the blow taken due to the pandemic.

Kasaija said the fund is affordable and timely. He also added that it comes at a time when SMEs are trying to recover from the effects of the pandemic.

‘’All small businesses operated by individuals, groups, partnerships, and companies employing 5-49 people, and with an annual turnover of shs 10 million to 100 million are eligible under this fund,’’ Kasaija said.

He further revealed that the maximum loan amount will be shs 100m. At an interest rate of 10 percent per annum.

Further, he said that the Bank of Uganda will administer the fund on behalf of the government.

The permanent secretary at the Ministry of Finance, Ramathan Goobi said the aim of the fund is to enhance the capability of SMEs to recover and resume operations.

‘’I, therefore, wish to call upon the general public to utilize this intervention for production and economic activities. As we take the precautionary measures to overcome the pandemic,’’ Goobi said.

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