MICRO AND SMALL ENTERPRISES (MSE) RECOVERY FUND
What is the Micro and Small Enterprises (MSE) Recovery Fund?
The MSE Recovery Fund is a five-year USD 20 million initiative under the Young Africa Works programme, established in partnership with the Mastercard Foundation and Financial Sector Deepening Uganda with an aim to jumpstart the economic livelihoods of entrepreneurs to secure and create job opportunities for young women and men in Uganda.
Aim of the Program
- Shorten the recovery trajectory of youth and women owned, operated, or employed businesses from the COVID-19 pandemic effects by providing their businesses much needed capital injections, among others.
- Build back the resilience of micro and small enterprises that employ millions of people in the country and were setback during the lockdown of 2020.
Objectives of the MSE Recovery Fund:
- To facilitate access to finance directly to 50,000 MSEs (70% women and young people) through 25 Tier III and Tier IV financial institutions. This fund will aim to protect at least 100,000 jobs at risk and cause a multiplier effect in credit extended to MSEs over five years.
- To support in building resilience of financial service providers through digitization of their loan processing workflows. The Fund will also support financial institutions to access credit reference bureau services.
- To attract more long-term institutional capital into the sector to address shocks and sustainability for systemic growth.
- To embed continuous learning within the grassroot financial service providers across the country, through encouraging best practices, which will create confidence and encourage innovations around product development, and service delivery.