Blended Finance Catalysing Financial Inclusion in Uganda

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    The study of the three blended finance funds, the Micro and Small Enterprises (MSE) Recovery Fund, the Agricultural Credit Facility (ACF) and the Small Business Recovery Fund (SBRF) shows that blended finance can indeed have a catalytic impact on access to formal financial services. However, the cost of finance remains high despite increased access for the case of the MSE Recovery Fund. For the ACF and SBRF, where the interest rates are fixed, these cannot be sustained without the continual interest free government contribution.

    Therefore, for sustainable impact to be achieved by such initiatives, an integrated approach that combines technical support and blended finance to address both the supply-side and demand-side structural and behavioural bottlenecks is critical

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