In the heart of Uganda, the European Union Delegation and the United Nations Capital Development Fund (UNCDF) have announced a groundbreaking initiative to propel sustainable agribusiness growth. The unveiling of the Support to Agricultural Revitalization and Transformation (START) Phase II marks a substantial EUR 11.5 million (UGX 48.9 billion) investment co-financed by the European Union, strategically designed to catalyze economic development, stimulate job creation, and foster sustainable growth
Building on the success of START Phase I, which injected Shs13.5 billion into over 50 SMEs, creating markets for 120,000 farmers, START II aims to expand its impact across Uganda. This phase focuses on addressing the financing challenges hindering agribusiness SMEs’ expansion and growth.
START II’s core objective is to promote value addition and agro-processing by granting agribusiness SMEs access to affordable medium-term financing. This support aims to facilitate operational expansion while emphasizing environmentally friendly practices and inclusivity, with a focus on vulnerable groups and women-led enterprises.
An admirable commitment of 30% of resources toward gender equality and support for green SMEs underscores the initiative’s commitment to sustainability and inclusiveness. Sophie De Coninck, Head of Uganda Office at UNCDF, emphasized the significance of the START Facility in unlocking the potential of agribusiness SMEs, driving sustainable growth, creating jobs, and fostering economic resilience.
European Union Ambassador to Uganda, Jan Sadek, reiterated the EU’s dedication to cultivating sustainable growth and prosperity in Uganda through collaboration with the UNCDF. The initiative aims to empower agribusiness SMEs and create an environment conducive to economic resilience and job creation.
For effective implementation and maximum impact, START II will collaborate with various stakeholders, including financial institutions, private sector foundations, government bodies, and international organizations. Key partners include the Private Sector Foundation Uganda (PSFU), Federation of Small and Medium Enterprises (FSME), Aceli Africa, and the Uganda Development Bank Limited (UDB).
With 1.1 million micro, small, and medium enterprises (MSMEs) employing 2.5 million people in Uganda, these businesses play a vital role in the country’s private sector and development. Challenges such as poor management, lack of records, collateral, and capital have hindered their growth potential. Agribusiness SMEs eager to participate in the START facility are encouraged to apply through the online portal [https://www.start.go.ug/], reflecting a sustained commitment to driving sustainable agribusiness growth throughout the year.
