Foundation capital

Mastercard Foundation and Financial Sector Deepening launch new fund to kick-start 50,000 micro and small businesses in Uganda

Kampala — Financial Sector Deepening (FSD) Uganda, in partnership with the Mastercard Foundation, today launched a five-year Micro and Small Enterprise (MSE) Recovery Fund under the Young Africa Works initiative, to help 50,000 businesses to recover from the effects of the pandemic.

The $20 million (approximately US$70 billion) fund will shorten the recovery process for youth and women-owned businesses that employ and support millions of Ugandans. The fund will directly secure 100,000 at-risk jobs while providing 150,000 additional dignified and fulfilling work opportunities for young people

MSEs participating in the program will receive credits worth between 100,000 and 10 million Ugandan shillings, which will be delivered through participating microfinance institutions and SACCOs (Tier III and Tier IV Financial Institutions).

In addition to supporting MSEs, the fund will build the resilience of local financial service providers (FSPs) by digitizing workflow processes and building their capacity to attract more long-term institutional capital to cope with shocks and ensure sustainability of systemic growth.

FSD Uganda Executive Director, Ms. Rashmi Pillai, said FSD Uganda is proud to work closely with like-minded partners such as the Ugandan government and Mastercard Foundation to find solutions that benefit all. Ugandan.

“The MSE Recovery Fund is the result of FSD Uganda 5-waves COVID-19 studies. The studthat is to say show that while most people were back in work by the end of 2020, job quality declined and take-home pay was still below pre-pandemic levels for almost 73% of adults surveyed. Individuals and households that worked for and with MSEs were most affected. That’s why the installation we’re launching today isintentionalby targeting micro and small enterprises with credit needs between 100,000 and 10 million UShs. We are confident that this facility will be an excellent complement to the Ugandan government’s Small Business Recovery Fund,” she added.

Speaking on behalf of The Mastercard Foundation, Adrian Bukenya, the organization’s country manager in Uganda, added: “MSMEs are an important driver of employment in Uganda. So as the Foundation seeks to enable 3 million young Ugandans to access dignified and fulfilling work by 2030, we know we cannot do it. only be achieved by addressing the residual effects of the pandemic on MSMEs.This facility aims to support the individuals and businesses that are the backbone of our economy as they rebound.

The Permanent Secretary and Secretary to the Treasury, Mr. Ramathan Ggoobi, commended FSD Uganda and the Mastercard Foundation for this initiative, which he said will strengthen Uganda’s efforts to accelerate growth and revive the economy. “I am happy that these organizations are targeting MSEs who employ most Ugandans. The fund will boost our efforts as a government and help us cover more ground and help our people become self-reliant in the face of the challenges of the pandemic,” he said.

The Recovery Fund will be set up in partnership with ASIGMA, the facility manager, who will ensure efficient management of the funds, and gnuGrid, who will be in charge of setting up the credit reference services to improve the processes of the service providers. selected financiers.

About FSD Uganda

Financial Sector Deepening Uganda (FSD Uganda) is a company limited by guarantee that promotes greater access to financial services in Uganda. FSD Uganda seeks to develop a more inclusive financial sector focused on low-income people, especially smallholder farmers, women, youth, forcibly displaced people and micro, small and medium enterprises (MSMEs). With support from FCDO, FSD Uganda facilitates product innovation, conducts research, helps promote and improve the policies, laws and regulations that shape the financial sector in Uganda. For more information on the Foundation, www.fsduganda.or.ug

About The Mastercard Foundation

The Mastercard Foundation works with visionary organizations to enable young people in Africa and Indigenous communities in Canada to access dignified and fulfilling work. It is one of the largest private foundations in the world whose mission is to advance learning and promote financial inclusion to create an inclusive and equitable world. The Foundation was created by Mastercard in 2006 as an independent organization with its own board and management. For more information about the Foundation, please visit www.mastercardfdn.org.

About Young Africa Works

Young Africa Works is the Mastercard Foundation’s strategy to enable 30 million young people, especially young women, across Africa to access dignified and fulfilling work. Africa will be home to the largest labor force in the world, with 375 million young people entering the labor market by 2030. With the right skills, these young people will contribute to Africa’s global competitiveness and improve their life and that of their communities. The Mastercard Foundation will implement Young Africa Works in 10 African countries in collaboration with governments, the private sector, entrepreneurs, educators and young people. The first phase of countries identified by the Foundation are Rwanda, Kenya, Ghana, Senegal, Ethiopia, Uganda and Nigeria.

For more information contact:

Lilian Akot
Communications Specialist
FSD Uganda
[email protected],ug
+256 776720100

Eleni Constantin White
Manager, Uganda Communications Program
Mastercard Foundation
[email protected]