Finance Boss asks Ugandans to utilize sh2.9 trillion to boost business

The government through several stimulus packages has injected over sh2.9 trillion which Ugandans need to utilize in order to boost the recovery of their businesses.

According to the Ministry of Finance Permanent Secretary Ramathan Ggoobi, Ugandans should tap into the numerous packages provided by government in order to boost their businesses.

“Government has planned to support business and economic recovery by implementing a stimulus package to boost aggregate demand and support businesses to restart and recover,” he said.

He noted that the first stimulus package of sh260b has been deployed through EMYOOGA targeting the financially excluded vulnerable groups and the active poor. This fund, he said is being served through the Micro Finance Support Center.

The second package according to the Ministry of Finance is the sh200b package that is meant for small businesses. The money is accessible by formal small businesses employing between 5 and 49 people, with an annual turnover of between sh10 million and sh100m.

The money is for businesses that must have been operational before Covid-19.

The third package the Ministry says is for medium and large-scale businesses amounting to sh612b which can be accessed through Uganda Development Bank.

Bank of Uganda is also managing an Agricultural Credit Facility accessible by those engaged in commercial agriculture and agro-value addition. The money currently standing at sh625b. It was disbursed through commercial banks.

He noted that the Uganda Development Cooperation has also been capitalised with sh200b to co-invest with companies operating in strategic businesses in agro-industry, manufacturing and mineral commercialization. “This is an indirect way of bailing out such companies that have been hard hit by the pandemic,” the Ministry states.

Ggoobi said the fourth booster is the sh1.0 trillion Parish Development Model for households engaged in a subsistent economy.

“The past two years may have been a pain to each of us but the future looks bright,” he said.