MSE Recovery Fund at One Report
The Micro and Small Enterprises (MSE) Recovery Fund was launched on February 24, 2022. The fund aims to facilitate access to finance directly to 50,000 MSEs (at least 40% women and 30% youth). This is with an objective to shorten the recovery trajectory of youth and women-owned and operated businesses from the COVID-19 pandemic effects, by providing their businesses with much-needed capital injections. In turn, this is expected to jumpstart the economic livelihoods of entrepreneurs to secure and create job opportunities for young women and men in Uganda.
Six microfinance institutions and SACCOs (Tier III and Tier IV financial institutions) have received funds to on-lend to small and medium enterprises recovering from the effects of the Covid-19 pandemic.
These are; Pride Microfinance Limited, FINCA Uganda, Lyamujungu Cooperative Financial Services, Mushanga SACCO Limited, Hofokam Limited, and UGAFODE Microfinance Limited, operating across the country.
Jointly, the institutions have on-lent UGX 13.42bn to 10,832 MSEs at an average interest rate of 16.0%. So far, the funds have been disbursed to 40% of youth and 55% of women. The average ticket size borrowed is UGX 950,000.