UNCDF Agribusiness SME Digitization Challenge – Uganda

With support from the European Union Delegation in Uganda (EUD), UNCDF Uganda is launching the 2nd phase of the START (Support to Agricultural Revitalization & Transformation) facility project. The 2nd phase of the START facility is designed to promote growth and job creation by investing in fully integrated and sustainable agribusiness Small and Medium Enterprises (SMEs) that create and retain wealth within Uganda.

The Facility is intended to support SMEs to access affordable medium-term finance in Uganda through strengthening institutional capacity of agribusiness SMEs in value addition & processing to conduct sustainable business and business operations (including digital solutions), develop bankable green investment proposals based on green and circular economy principles. The 2nd phase of the START Facility will be implemented by UNCDF in partnership with apex private sector institutions and selected financial institutions including Uganda Development Bank Ltd (UDB).

It’s imperative to focus on the Agri-business SMEs in Uganda given the fact that the sector accounts for approximately 80 percent of manufactured outputs, contributing to about 75 percent of the gross domestic product (GDP) and presents a sustainable and empowering response to unemployment challenges in addition to creation of a market for primary agricultural products and enabling national economic structural transformation.

The Agribusiness SME Digitization RFA Challenge is looking for an innovative and scalable digital solution that should address all the focus areas below, with an aim of empowering agribusiness SMEs across Uganda to access affordable medium-term financing to expand and grow their agribusinesses while working with value chain actors to ensure increase access to inputs, extension and advisory services, output markets and credits services.

Focus Areas

Focus intervention areas under this RFA:

• SME’s Records Management (production, Manufacturing, purchases, supplier mapping, sales, Marketing, expenses, stock, assets, liabilities, Customer Relationship Management)
• SME’s Accounting & Financial Management
• SME’s Business Intelligence on performance & big data Analytics
• SME’s Quality control and Compliance Management
• Access to Extension service, market information and quality input

The proposed Digital solution will be deployed in the Agribusiness SME sector across all regions of Uganda, working with smallholder farmers in agricultural production, value addition, agro-processing, and marketing across all regions of Uganda. Priority will be given to Agribusiness SMEs that, empower vulnerable groups such as Women, Youth, Refugees & host communities, and Persons with Disabilities; SMEs from the Karamoja sub-region and SMEs encouraging green practices.

Funding Information

• The Agri-business SME Digitization Challenge RFA is targeted at solutions that are ready for piloting. The fund will provide co-funding risk capital in the amount of US$250,000 to US$350,000 to the selected partner through performance-based grants.
• Project duration: The technology infrastructure project is expected to take at least 36 months (about 3 years) up to the end of 2026.

Eligibility Criteria

• Entity registration
  • The applicant/lead applicant must be a registered entity i.e., technology provider, or fintech operating in Uganda.
  • The applicant/lead applicant must have an existing SME digitization solution or demonstrate the capacity to develop an SME solution that can be used to digitize more than 300 SMEs under the project.
  • The applicant/lead applicant must have at least two (2) years of experience in the management and implementation of related digital solutions with the SMEs in Uganda.
  • The applicant/lead applicant must provide audited financial statements for the two (2) years. If audited financial statements are not available at the time of application, the applicant must provide the latest management accounts and provide UNCDF with audited financial statements during the project duration.
• Country of Operation
  • The applicant can be registered in Uganda. However, the interventions – irrespective of the applicant’s registration country – should have their project and solution implementation in Uganda. They strongly encourage Ugandan based businesses to apply.
  • Entities registered outside of Uganda are required to have at least one local partner that is registered in Uganda and apply as a consortium.
• Target segment
  • The solution is targeted towards serving registered agri-SMEs (companies, cooperatives, or Associations) as the direct beneficiaries. Indirect beneficiaries include farmers, agro-input dealers, product off takers and other value chain actors, both in refugee and host communities in Uganda. Service providers and solutions that improve women’s participation in agribusiness SMEs and other economic processes are particularly encouraged to apply. Applicants are also encouraged to focus on local partnerships, and youths.
• Geographical scope
  • The interventions – irrespective of the applicant’s sending country – should implement solutions in targeting Agribusiness SMEs from across all regions of Uganda.

For more information, visit UNCDF.