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US$2.0 million pledged for ugandaN Enterprises and agribusinesses
Agreement between USADF and the Government of Uganda signals long-term commitment to the promotion of agriculture and the development of small scale agribusinesses and small and medium-sized enterprises .
KAMPALA - November 13, 2006
The United States African Development Foundation (ADF) and the Government of Uganda last week entered into an agreement that will significantly expand the ability of ADF, a US Government foreign assistance program, to support the growth of small-scale businesses in Uganda. The five-year agreement provides US$2.0 million annually in funding for small and medium-sized enterprises (SME), small scale agribusinesses (SSA) and smallholder agricultural producers.
Under the terms of the agreement, the Government of Uganda and ADF will establish the Program for the Promotion of Smallholder Agriculture and Development of Agribusinesses and Small and Medium-sized Enterprises in Uganda (the PROMO Program). The PROMO Program is based on ADF’s business model, which provides integrated packages of funding and assistance directly to its beneficiaries and helps them to identify and take advantage of opportunities for trade and investment. The Government of Uganda and ADF will each invest US$1.0 million annually in the PROMO Program for the next five years.
Mr. Keith Muhakanizi, Deputy Secretary to the Treasury, signed the agreement on behalf of the Republic of Uganda. Representing ADF were Ward Brehm, Chairman, and Dick Day, Vice President and COO, who were in Uganda especially for the formal signing ceremony. Also present at the signing, which took place at the Ministry of Finance, Planning and Economic Development in Kampala, were other members of the cabinet, including Charles Byaruhanga, Budget Advisor, Ministry of Finance, Planning and Economic Development, and John Charles Ogol, Principal Finance Officer, Ministry of Finance, Planning and Economic Development, as well as Chris Fowles, ADF Regional Project Coordinator for Uganda, and Joan Rutaroh, Director, Uganda Development Trust (UDET), ADF’s Partner in Uganda.
Ward Brehm, ADF Chairman, expressed his pleasure at the signing of the agreement. “For the past 15 years ADF has provided direct investments to Ugandan small businesses and community-based organizations, helping to forge a spirit of entrepreneurship, generate jobs and income for the rural poor, and acting as the stimulus for future economic growth,” he stated. “The Government [of Uganda]’s support for the PROMO Program significantly strengthens ADF’s ability to assist indigenous SMEs and smallholder agricultural producers, and is vital to its success.”
The PROMO Program will have three major thrusts: Smallholder and Agribusiness Support and Linkage Development, Trade and Investment Promotion, and Development of Sustainable Sector-support Mechanisms. Under the terms of the agreement, ADF will assist agricultural producers and processors to increase productivity and to diversify into higher-value, non traditional crops, as well as to establish and expand processing and manufacturing. Support will also be extended to indigenous organizations that serve the SME and SSA sectors. ADF funding is structured so as to create a local pool of capital, which will guarantee future funding availability for small holder organizations and small-scale agribusinesses.
In addition, ADF will assist small and medium-sized enterprises to develop linkages with larger local and foreign corporate partners, including the pursuit of trade and joint-venture initiatives involving regional and international partners to capitalize on the benefits of the Africa Growth and Opportunity Act.
Dick Day, Vice President and COO for ADF, commented on the significance of the agreement for Uganda’s future economic growth. “The primary beneficiaries are small scale farmers and businessmen and women who drive the growth of the private sector. With this agreement, every year more than eight new entities will receive ADF support to help them build capacity and take advantage of trade opportunities.”
The United States African Development Foundation (ADF) is a United States Government agency dedicated to expanding access to economic opportunity in Africa. Founded in 1980, ADF established field operations in Africa in 1984. Over the past 20 years, ADF has funded over 1,600 projects in support of African entrepreneurs and local Afri can communities.
ADF established operations in Uganda in 1992. The country program has a strong focus on export-oriented SMEs and currently comprises 15 active projects, including one Micro-finance project, one Community Development project and 13 Enterprise Development projects. ADF works with a local Partner, the Uganda Development Trust, to help organizations develop long-term business plans and acquire the skills and resources required to implement those plans. The average funding amount provided per project is $209,000. For more information on ADF, its programs and its application guidelines, visit: www.adf.gov.