The Covid-19 Business Info Hub is gathering useful information to help you understand what funding opportunities exist to help SMEs during this pandemic. Here is what you need to know about Bank of Uganda’s (BOU) Agriculture Credit Facility (ACF).
What is the BOU ACF?
The ACF was set up by the Government of Uganda (GoU) in partnership with Commercial Banks, Uganda Development Bank Ltd (UDBL), Micro Deposit Taking Institutions (MDIs) and Credit Institutions with the main objective of promoting commercialization of agriculture through the provision of medium and long term financing to projects in agriculture, agro-processing, modernization and mechanization.
What sort of projects are eligible for this facility?
Projects that require the acquisition of agricultural machinery and post-harvest handling equipment, storage facilities, agricultural inputs, biological assets for restocking the farm, agro-processing facilities, purchase of grain, and any other agricultural and agro-processing related activities.
Projects requiring working capital for operating expenses will be considered provided this component does not exceed 20% of the total project cost for each eligible borrower. These costs may include wages for hired farm labour, overhead costs like utilities and installation costs, and hiring of specialized machinery for farming activities, among others.
What are the loan terms and requirements?
Loan amounts are determined on the basis of assessment and appraisal of project costs and genuine credit needs in accordance with the lending policy of the commercial bank and the ACF Memorandum of Understanding. Loans are designated in Ugandan shillings and disbursed by commercial banks. Key terms include:
- The maximum loan amount to a single borrower is up to Shs.2.1billion, however this amount can be increased up to Shs.5billion on a case-by-case basis. The maximum loan amount to an eligible borrower for biological assets shall not exceed UGX 80 million and shall not be used for financing working capital for purchase of land, forestry, refinancing existing loan facilities and trading in agricultural commodities with the exception of grain (see below).
- There is no designated minimum loan amount to the final beneficiary, but BOU can only reimburse a minimum of Shs 10million to the commercial banks.
- Loan terms will be between 6 months and 8 years with a maximum grace period of up to 3 years.
The interest rate to the final borrower is up to a maximum of 12% per annum.
- Loan processing fees should not exceed 0.5% of the total loan amount. Any legal documentation and registration costs are borne by the borrower.
- Collateral requirements include machinery and equipment financed by the loan, and any other marketable securities provided by the borrower/final beneficiary. The commercial bank may seek additional security based on their evaluation of the risk profile of the project being financed.
What are the conditions for loans for grain trading?
Loans are available for working capital and capital expenditure related to grain trading with the following conditions:
- The maximum financeable amount to a single borrower will be UGX 10 billion, and the GoU contribution shall be 50 percent of the eligible amount.
- The maximum tenure of a loan for working capital for an eligible project under the grain facility shall be 24 months from the date of disbursement to the borrower.
- The maximum tenure of a loan for capital expenditure for an eligible project under the grain facility shall be 8 years from the date of disbursement to the borrower with a maximum grace period of 3 years.
- The applicable interest rate for loans advanced to finance grain trading under the scheme shall be a maximum of 15% per annum.
- The applicable interest rate for loans advanced to finance capital expenditure under the scheme shall be a maximum of 12% per annum.
What is the procedure of accessing the ACF Loan Facilities?
The client forwards his/her loan application to any commercial bank of his/her choice that is part of the Participating Financial Institutions (PFIs) for the ACF facility. The bank will then advise on the terms under the ACF facility. A detailed bankable project proposal/feasibility report may be required by the PFI (depending on the loan amount applied for).
Issues to do with the security/collateral will be negotiated with the client’s bank and not with BOU. If the loan application meets the requirements of the ACF, then the bank will forward the application to BOU on behalf of the client for approval. BoU then reviews the application for compliance in accordance with the guidelines governing the administration of the scheme and on approval by BoU, the bank will disburse the funds to the client and request BoU for a re-imbursement.
For more information, contact Bank of Uganda (BOU).
Website: https://www.bou.or.ug/bou/bouwebsite/ACF/ Head office: Plot 37/45 Kampala Road, P.O.Box 7120, Kampala, Uganda. Telephone numbers: +256-414-258-441/6 +256-414-258-060/9 Email: info@bou.or.ug
Bbanka ya Uganda enkulu eyambye etya SMEs ezenyigira mu by’obulimi n’obulunzi okusobola okufuna okuyambibwako mu by’ensimbi?
Omukutu gwa Covid-19 Business Info Hub guli mu kukungaanya amawulire ag’omugaso okukuyamba osobole okutegeera amakubo agaliwo, SMEs mwe zisobola okuyita okusobola okuyambibwako mu by’ensimbi. Bino byoteekeddwa okumanya ku nkola Bbanka ya Uganda enkulu gye yassaawo okuyamba ku beenyigira mu mulimu guno eyitibwa Agriculture Credit Facility (ACF)
Enkola ya Bbanka ya Uganda enkulu eyitibwa ACF etegeeza ki?
Enkola ya ACF yateekebwawo Gavumenti ya Uganda ng’ekolaganira wamu ne zi bbanka z’eby’obusuubuzi (commercial banks) bbanka y’eby’enkulaakulana (Uganda Development Bank Ltd), ebitongole ebitonotono ebiterekera abantu ensimbi (MDIs) wamu n’ebitongole ebirala ebiwola ssente. Ekigendererwa ekikulu mu ACF kwe kutumbula eby’obulimi n’obulunzi ng’omulimu oguvaamu ssente nga bayita mu kuteeka ssente mu zi pulojekiti z’eby’obulimi, okwongera omutindo ku bikunguddwa, ennima ey’omulembe nga kwotadde n’enkola y’okukozesa ebyuma.
Pulojekiti nnabaki ezikkirizibwa okwenyigira mu nkola eno?
Pulojekiti zonna ezirina obwetaavu bw’ebyuma ebikozesebwa mu kulima wamu n’ebyo ebikozesebwa oluvannyuma lw’amakungula, abeetaaga aw’okutereka ebikunguddwa, okuzzaawo ebimera ebirala, ebikozesebwa mu kwongera omutindo ku bintu byabwe, okugula ensigo n’ebirala ebigwa ku kkowe eryo.
Pulojekiti ezirina obwetaavu bwa ssente ez’okuddukanya emirimu gya bulijjo ziggya kuweebwa omukisa kasita zibeera nga omutemwa gwe zeetaaga tegusussa bitundu 20% ku muwendo gwonna awamu gwe zikozesa. Muno muzingiramu okusasula abakozi, okusasulira ebikozesebwa ebirala, okupangisa ebyuma nga kyetaagisizza n’ebirala ebigwa ku kkowe eryo.
Biki ebyetaagisa omuntu okusobola okwewola?
Omuwendo oguwolebwa omuntu yenna gusinziira ku kupimaapima wamu n’okukakasa obwetaavu bw’ensimbi obutuufu omulimu ogwo bwe guba gulina okusinziira ku nkola ya bbanka ssekinnoomu wamu n’entegeeragana yaayo ne ACF. Amabanja gano gawolebwa mu ssente za Uganda era nga gayisibwa mu bbanka ez’eby’obusuubuzi.
Obukwakkulizo obw’enkizo buzingiramu buno wammanga;
- Ekinene ennyo omuntu asobolola okwewola shs. obuwumbi 2.1, wabula ssente zino zisobola okulinnyisibwa okusinziira ku busobozi bw’omuntu ssekinnoomu.
Oyo ayagala okwewola ssente ez’okuteeka mu birime ebikulira ebbanga eggwanvuko, tajja kusussanga shs. bukadde 80 era nga zino ziba tezikkirizibwa kukozesebwa mu kuddukanya mirimu gya bulijjo omuli okugula ettaka, eby’ebibira, okusasula ebbanja ekkadde oba okukozesebwa mu kusuubula ebirime ebirala ng’oggyeko eby’empeke. (wekkaanye bino wammanga)
- Omuntu asobola okwewola ssente zonna z’asobola-twali kkomo ku butono bwazo naye yo bbanka enkulu ekitono ennyo ky’esobola okuwa bbanka z’obusuubuzi ziri shs. obukadde 10.
- Amabanja gano gajja kumalanga ebbanga eriri wakati w’emyezi 6 okutuuka ku myaka munaana (8) era ng’omuntu aba asobola okuweebwa akalembereza akatasussa myaka esatu (3).
- Ekinene ennyo omwewozi ajja kiggyibwangako amagoba ga bitundu 12% buli mwaka
- Ebisale ebikola mu kuteekateeka ebbanja tebiisukkenga butundutundu 0.5% obw’omuwendo gwonna awamu. Ebisale eby’etaagisa okuteekateeka ebiwandiika mu mateeka wamu n’okwewandiisa byonna biba bisasulwa oyo ayagala okwewola.
- Omusingo gujja kuba nga guzingiramu ebyuma ebiba biguliddwa ku ssente z’ebbanja, n’ebintu ebirala byonna eyeewoze by’aba ataddeyo kasita biba nga bitundika. Bbanka esobola okusaba ebintu ebirala ebikweyimirira ng’esinziira ku ngeri gy’eba erabyemu obulabe obuyinza okwolekera pulojekiti eteekebwamu ssente.
Bukwakkulizo ki obuliwo eri oyo ayagala okwewola ssente ezikozesebwa mu busuubuzi ebirime eby’empeke?
Osobola okwewola ssente ezikozesebwa mu kuddukanya emirimu egya bulijjo wamu n’abetaaga ez’okugula ebintu ebikozesebwa mu busuubuzi bw’ebirime eby’empeke era obukwakkulizo bwe buno wammanga;
- Ekinene ennyo, omuntu omu aba asobola okuweebwa obuwumbi 10, era nga gavumenti ejja kuteekangako ebitundu 50% ku muwendo ogunaaba gwetaagisizza.
- Omuntu eyeewoze ssente ez’okukozesa mu kuddukanya emirimu egya bulijjo mu pulojekiti y’ebirime eby’empeke, ebbanja lino liba limala ekinene ennyo emyezi 24 okuva ku lunaku ssente ezo lwe zimuweebwa.
- Omuntu eyeewoze ssente ez’okugula ebikozesebwa okugeza ebyuma mu pulojekiti egwa mu ttuluba ly’obusuubuzi bw’ebirime eby’empeke, ebbanja lino lijja kumalanga ekinene ennyo emyaka 8 okuva ku lunaku ssente lwe zimuweereddwa era aweebwa akalembereza akaweza ekinene ennyo emyaka esatu (3).
- Amagoba aganaggyibwanga ku muntu eyeewoze ssente ez’okuddukanya emirimu gya pulojekiti egya bulijjo ekinene ennyo gajja kubeera ku bitundu 15% buli mwaka.
- Amagoba aganaggyibwanga ku muntu eyeewoze ssente ez’okugula ebikozesebwa go gajja kubeera ku bitundu 12% buli mwaka ekinene ennyo.
Biki ebigobererwa okusobola okwewola ssente eziri ku nkola ya ACF?
Omuntu yenna alina obwetaavu bw’okwewola ateekayo okusabakwe ng’ayita mu bbanka y’eby’obusuubuzi gy’aba asiimye kasita ebeera nga y’emu kwezo ez’enyigira mu nkola ya ACF (Participating Financial Institutions – PFIs). Bbanka yo oluvannyuma ejja kukunnyonnyola amateeka agagobererwa mu nkola ya ACF. Bbanka yo era eyinza okwetaaga ekiwandiiko ekinnyonnyola obulungi pulojekiti gy’oyagala okukola n’engeri gy’osuubira okugifunamu (kino kijja kusinziira ku muwendo gwa ssente omuntu gwabeera asabye)
Eby’omusingo oba ebikweyimirira bijja kuteesebwanga era mutegeeragane ne bbanka yo so ssi na bbanka enkulu. Ssinga okusabakwo kunaaba kutuukagana n’eby’etaago bya ACF, olwo bbanka yo ejja kukuweereza mu bbanka enkulu kusobole okukakasibwa. Bbanka enkulu ejja kuyitanga mu kusaba kuno erabe oba kutuukagana bulungi n’okulungamizibwa okwassibwawo ku nzirukanya y’enkola eno. Ssinga okusabakwo kunaabanga kukakasiddwa bbanka enkulu, olwo bbanka yo ejja kukuwa ssente era yo esabe bbanka enkulu okuweebwa endala.
Okumanya ebisingawo, tuukurira bbanka ya Uganda enkulu ku ndagiriro eno;
Website: https://www.bou.or.ug/bou/bouwebsite/ACF/ Head office: Plot 37/45 Kampala Road, P.O.Box 7120, Kampala, Uganda.
Essimu: +256-414-258-441/6 +256-414-258-060/9 Email: info@bou.or.ug
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