The Principal Commercial Officer of Lamwo District, Powel Alex Kadugu, has appealed to local entrepreneurs and agribusiness owners engaged in value addition to take advantage of the START Facility Phase II concessional financing program.
This initiative, implemented under the Agricultural Revitalization and Transformation agenda, targets formally registered small and medium-sized enterprises (SMEs) involved in agribusiness across Uganda.
Kadugu made the call while addressing local business stakeholders during a sensitization session held at the district headquarters on Tuesday, June 17.
He emphasized the need for Lamwo-based entrepreneurs to harness the financial opportunities provided through the START (Support to Agricultural Revitalization and Transformation) Facility to boost their capacity, improve product quality, and expand markets.
“I strongly encourage all businesspeople who are engaged in value addition, especially in agriculture, to apply for this loan facility. It is designed to support SMEs to scale up operations through acquisition of equipment, construction of storage units, and expansion of processing capabilities,” Kadugu stated.
The START Facility Phase II is jointly managed by the United Capital Development Fund (UNCDF) in partnership with the Uganda Development Bank (UDB). The program is designed to extend concessional loans to SMEs that are formally registered and active in the agribusiness sector.
According to Kadugu, the loans are specifically structured for capital expenditure purposes and come with favorable terms to encourage uptake among rural-based businesses.
The facility offers: Loan amounts ranging from shs50 million to shs900 million, concessional interest rate of 12% per annum, calculated and charged monthly, loan tenure of up to 96 months (8 years), grace period of up to 24 months, depending on the nature of the investment.
It offers collateral requirement of 100% as per UDB’s lending policy, loan appraisal fee of 0.5% of the loan amount
Kadugu noted that the facility presents a timely opportunity for farmers and processors in Lamwo to add value to their produce and contribute to local economic development
“Many of our SMEs are struggling with outdated machinery and inadequate infrastructure. This facility can help them modernize their operations and compete favorably in regional markets,” he added.
Several business owners in attendance welcomed the initiative, citing the need for better access to affordable financing.
“We have always had ideas to expand our groundnut processing plant, but capital has been a big challenge. This loan could finally make that possible,” said Fiona Angee, a farmer with a vision to start agro-processing in Padibe Town.
“The grace period and longer repayment terms are very encouraging. I plan to visit the commercial office to get help with my application,” added Simon Okema, a local rice miller in Palabek Ogili.
Interested applicants are encouraged to seek guidance from the Lamwo District Commercial Office for proper documentation and support throughout the application process.
Kadugu also urged local leaders to spread the message to ensure that businesses in even the most remote parts of the district can benefit from the program.
The call aligns with the government’s broader vision to transform agriculture from subsistence to commercial, with SMEs playing a central role in enhancing rural incomes and food security.
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