BUDS-DFID PRIVATE SECTOR FOUNDATION UGANDA. Your Partner in Private Sector Led Development

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1 BUDS-DFID PRIVATE SECTOR FOUNDATION UGANDA Your Partner in Private Sector Led Development

2 2 Before After SOUTH BASE INDUSTRIES BUTALEJA; received 12 new ginning machines with support from BUDS - DFID.

3 What is BUDS-DFID? BUDS-DFID (Business Uganda Development Scheme) is a cost sharing project funded to a tune of 13 Million by UK Department for International Development (DFID) and implemented by PSFU on behalf of the Office of the Prime Minister. The funding is channelled through the Office of the Prime Minister to support the economic recovery under the Peace Recovery and Development Programme (PRDP) that targets 55 districts of the Greater North. Implementation of the project started in 2011 and completion is expected in The project is aimed to stimulate economic growth in the PRDP region. What is the Goal of BUDS-DFID? To promote private sector growth, investment and employment opportunities under the PRDP sub-regions in Acholi, Lango, Teso, West-Nile, Karamoja, Bukedi and parts of Bunyoro sub-regions. What are the objectives of BUDS-DFID? Increase in the number of rural enterprises investing in agricultural production, processing and other economic sectors Increase the number of labour-intensive industries leading to employment creation Reduce and eliminate gaps in the supply chain leading to processed agricultural products Support linkages between investors and the local economy through the supply of raw materials, employment and training Promote trade by rural enterprises including trade outside of their locality How much support does BUDS-DFID offer Cumulative Grant support is up to a maximum of Two Hundred and Fifty Thousand Pounds Sterling ( 250,000) per qualifying enterprise. 3

4 Who are the Partners in this Project Government of Uganda through the Office of the Prime Minister (OPM) Government of the United Kingdom through the Department for International Development (DFID) Private Sector Foundation Uganda (PSFU) Who/what qualifies for the Grant? Business organizations involved in all sectors including agriculture, commerce, manufacturing, commercial agriculture, consultancy, business associations, services operating in the PRDP region qualify for the support. A brand new Tractor procured by the Naburri Farm Ltd in Nakapiripiriti District with the Support from BUDS-DFID. A grant will be given out to an applicant after being appraised based on the following criteria: 4 A legal person; A company registered in Uganda under the Companies Act (1961), A cooperative formed under the Co-operative Societies Act, An NGO operating under the NGO Registration Regulations and the NGO Registration Act, Community Based Organisations (CBOs) registered in Uganda A chamber of commerce, farming association, trade association or similar business representative organisation legally established in Uganda, Vocational training institutions legally established in Uganda; Business start-ups who are registered and have invested capital

5 What Categories are Eligible for Support? 1. Business Development Services (BDS) 2. Skills Development including capacity building 3. Capital investment related activities including equipment /post harvest handling processes /storage 4. Plant construction GULU TAILORS ASSOCIATION received BUDS-DFID support to acquire equipment for their training centre and individual members. What Activities are Eligible for Support? Assessing the feasibility of an investment in post-harvest handling equipment, drying/re-drying, cleaning, sorting and storage equipment, quality control equipment, and agroprocessing equipment. Investment in post-harvest handling equipment, drying/ re-drying, cleaning, sorting and storage equipment, quality control equipment, and agro-processing equipment. Training in the use of post-harvest handling equipment, drying/ re-drying, cleaning, sorting and storage equipment, and agroprocessing equipment. Training for farmers/farmers groups to understand and meet the quality standards of agro-processors Promotion of farmers groups marketing initiatives and the development of farmers groups to market and maintain quality standards. Investment and training in the development of systems for improved market information flows to both farmers and agroprocessors 5

6 6 Investment and training to develop regional trade linkages: including systems for the dissemination of up-to-date and relevant market information and trading opportunities to traders within the northern region. Investment in demonstration projects and publication of information to ensure success stories are replicated. Investment and training for networking and information exchange between farmers groups, traders and processors Value addition of commercial agriculture products and byproducts such as shea nuts, wheat, milk, barley, fruits, etc. Branding for the domestic and export markets. Business trainings Business Support services aimed at improving firm level competitiveness Priority will be accorded to projects generating positive multipliers or those with the highest potential for replication. NOTE: Each activity or project proposed should not take longer than 24 months of implementation SENSITISATION MEETING ON BUDS-DFID Manager BUDS-DFID Daniel Kisekka at a sensitisation meeting in Northern Uganda. How do we define MSMEs and Large Enterprises under BUDS-DFID? PSFU has applied the Commonwealth definitions for the local enterprises as follows: 1. A Micro enterprise will be that one employing a maximum of 4 people; annual sales/revenue turnover of maximum Ugandan Shillings 12 million and total assets of maximum Ugandan Shillings 12 million.

7 A Small Enterprise is to be defined as an enterprise employing maximum 50 people; annual sales/revenue turnover of maximum Ugandan Shillings 360 million and total assets of maximum Ugandan Shillings 360 million. A Medium Enterprise is to be defined as an enterprise employing between 50 and 70 people; annual Sales/revenue turnover of more than Ugandan Shillings million and total assets of not exceeding Shillings 500 million. A large enterprise is to be defined as an enterprise employing more than 70 people with annual Sales/revenue turnover of more than Ugandan Shillings 500 million and total assets of more than Uganda Shillings 500 million. Grant Methodology/Criteria All business development services, skills development related activities for above applicants will be funded by the Scheme 100%. For Cooperatives, Associations, Micro and Small Enterprises, a 20/80 cost share grant arrangement will apply on all capital investment related activities with the Scheme funding 80% of the activity budget. For Medium enterprises, a 30/70 cost share grant arrangement will apply on all capital investment related activities with the Scheme funding 70% of the activity budget. For the large Enterprises, a 40/60 cost share grant arrangement will apply on all capital investment related activities with the Scheme funding 60% of the activity budget. BUDS-DFID also supports value addition under Agriculture 7

8 Modality for Funding For all business development services and skills development activities, the Scheme will advance 50% of eligible costs upfront and 50% on completion of the activity to the service provider(s). For all capital investment related activities, the Scheme will advance its contribution directly to the client s chosen suppliers. The Scheme will consider both cash and in-kind contribution towards the cost of executing the activities. 8 Hand Holding Services by BUDS DFID Team. (i.e completion of scheme forms, support during activity implementation & during reimbursement process.) ADDITIONAL CRITERIA FOR GRANTS OF UGS100MILLION OR MORE. AMOUNT (EITHER) For Direct Job Created (Or) Indirect Jobs Created UGX millon 11 (+ Direct jobs) 250 (+ indirect Jobs) Above UGX. 500million 58 (+ Direct jobs) 500 (+ indirect Jobs) Who/What activities are not Eligible for Support? (a) Applicants operating in the production of weapons (b) Gambling related activities (c) All Applicants outside the defined PRDP sub regions (d) Activities that may give rise to direct or indirect benefit to only a single commercial enterprise; (e) Activities that could incite tension.

9 Atek Ki Lwak Savings & Credit Co-op. Society. BUDS supported the group for a training in commercial mushroom growing & formalizing structures PEYERO MILLERS LTD IN GULU. A newly procured and installed rice processing unit supported by BUDS-DFID. (f) Activities that conflict, either directly or indirectly, with the policies of the Government of Uganda or the Government of the United Kingdom or that may be linked to a prejudicial image. (g) Debts and provisions for losses or debts; interest owed; items already financed in another framework; purchases of land or buildings, currency exchange losses; and taxes, including VAT What other services does BUDS-DFID offer? The BUDS-DFID staff will provide you with hand holding and advisory services (i.e. fulfilling of all scheme requirements, completion of scheme forms, support during activity implementation and during the reimbursement process). Does BUDS-DFID consider in-kind contributions? Yes, in kind contributions shall be acceptable but these must be justified and based on local market rates. 9

10 Districts targeted that quality for the BUDS-DFID Support BUDS-DFID targets 55 Districts and 9 Municipalities under Post Conflict Recovery Development Plan (PRDP). They include; a) Acholi sub-region; Amuru, Gulu, Kitgum, Pader, Gulu Municipality, Agago, Lamwo, Nwoya b) Bukedi sub-region; Budaka, Busia, Butaleja, Pallisa, Tororo, Tororo Municipality, Kibuku, Busia Municipality c) Bunyoro sub-region; Buliisa, Masindi, Kiryandongo, Masindi Municipality d) Elgonia sub-region; Bududa, Bukwo, Kapchorwa, Manafwa, Mbale, Sironko, Mbale Municipality, Bulambuli, Kween e) Karamoja sub-region; Abim, Kaabong, Kotido, Moroto, Nakapiripirit, Moroto Municipality, Amudat, Nakpak f) Lango sub-region; Amolatar, Apac, Dokolo, Lira, Oyam, Lira Municipality, Otuke, Alebtong, Kole, g) Teso sub-region; Amuria, Bukedea, Kaberamaido, Katakwi, Kumi, Soroti, Soroti Municipality, Serere, Ngora h) West-Nile sub-region; Adjumani, Arua, Koboko, Moyo, Nebbi, Arua Municipality, Yumbe, Maracha, Zombo Steps involved in BUDS-DFID Grants Management 10 Application and Proposal for support received by Client Relations Officer (CRO) and registered in the registration book. CRO checks proposal to ensure eligibility/conformity together with the 2-3 weeks notice required before activity commences If proposal meets criteria, CRO acknowledges receipt by stamping the same and forwarding it to the Scheme Officers (SO). Countdown begins with the stamped date. If the criteria is not met, the client is advised of the same and application is put on hold pending submission of all necessary requirements (checklist is available). For applications that meet the criteria, the Scheme Officers (SO) carries out a technical review of the proposal, making necessary changes before recommending the file to the Scheme Manager for approval Scheme Manager reviews the file, making the necessary observations and recommendations before approval On approval, an agreement is signed by the Scheme Manager and the Beneficiary. The agreement spells out the activity start/end dates and the required deliverables for reimbursement. It is only after the signing of the agreement that the activity can be executed.

11 BUDS-DFID STAFF On completion of activity and submission of the necessary deliverables, processing reimbursement will take a maximum of fourteen working (14) days The Scheme s mode of payment is by Electronic Funds Transfer (EFT); hence a Bank Account is necessary. DANIEL KISEKKA-MANAGER LUCY AKULLO MUGISHA How to apply for BUDS-DFID Support? Pass by PSFU offices (Kampala or Gulu Office) or call to make an appointment to discuss your project/activity with a BUDS-DFID officer. With assistance from the BUDS-DFID officer, determine your business situation/need for BDS through a brief business diagnostic. Determine the best practical activity for your business for BUDS-DFID support. Pick application forms from Gulu Office or Kampala offices or click www. psfuganda.org,ug to download. Remember application forms must be submitted accompanied with a letter of request signed by an authorized person on behalf of the enterprise. Submit your fully completed application forms and the required attachments two weeks before the start of the activity. Refine the application and budget with the BUDS-DFID officer Sign an agreement with BUDS-DFID. Carry out your planned activity in accordance with the agreement signed with BUDS-DFID. Prepare and submit your properly documented claim to BUDS-DFID. Receive your claim approved. BUDS-DFID officers will provide all applicants with the necessary advice to enable them develop grant applications, conduct approved activities and make claims for payment. ROBINAH NAMIREMBE SAMALIE K. BWANIKA LUCILE MARANZI JOHN K. ABAHO JOHN NUWAMANYA ANDREW GALIWANGO JOSEPH NAINGO 11 OBALI WILFRED JWEE FRED INGA.

12 For more information: Visit our website on Or contact: GULU OFFICE BUDS-DFID Plot 22B Upper Churchill Drive Gulu Tel: / dkisekka@psfuganda.org.ug OR KAMPALA OFFICE Private Sector Foundation Uganda (PSFU), Plot 43, Nakasero Hill Road Tel:[+256] , , , Fax[+ 256] P.O Box 7683 Kampala, Uganda, dkisekka@psfuganda.org.ug, Website: 12 SUPPORTED BY OFFICE OF THE PRIME MINISTER, AND FUNDED BY UK DEPARTMENT FOR INTERNATIONAL DEVELOPMENT (DFID) All BUDS-DFID Project Information materials are FREE OF CHARGE