Micro and Small Enterprise (MSE) Recovery Fund

Micro and Small Enterprise (MSE) Recovery Fund is sponsored by Mastercard Foundation and Financial Sector Deepening Uganda. This five-year initiative aims to facilitate access to finance directly to 50,000 MSEs (at least 40% women and 30% youth) with the objective to shorten the recovery trajectory of youth and women-owned and operated businesses and create job opportunities in Uganda.

Micro, Small and Medium Enterprises (MSME) Recovery Fund | Mastercard Foundation Financial Sector Deepening Uganda is an independent not-for-profit company working with financial market actors to facilitate the development of a more competitive, robust, and inclusive financial market that meets the needs of everyone, especially the unserved and underserved.

FSDU, in partnership with the Mastercard Foundation, is implementing a Small and Micro Enterprises Recovery Fund to shorten the recovery journey of women- and youth-owned or operated businesses from COVID-19, complement the government of Uganda’s Small Businesses Recovery Fund, and build back the resilience of SMEs that employ millions of young people.

Directly secure/protect 100,000 jobs at risk due to the adverse long-lasting effects of the COVID-19 pandemic; create 150,000 new, dignified and fulfilling jobs for young people and enable an additional 150,000 indirect jobs.

Target: 150,000 Youth in Work Geographical location: Country-wide Extend and facilitate access to finance to 50,000 micro and small enterprises (40% women and 30% young people) through selected financial institutions, to withstand the economic effects of COVID-19 and support their recovery during and post-crisis. Build the resilience of the microfinance ecosystem by leveraging technology and strengthening business models.

Strengthen the credit information markets through increased access and usage of the Credit Reference Bureau. Financial institutions/service providers financed and strengthened to extend credit at reduced interest rates to young the targeted population. Micro and small enterprises have accessed credit at lower rates than the market.

As a result, some financial institutions have reduced their rates. Young people have accessed job opportunities through the enterprises that have accessed finance. Young people have been received literacy trainings and financial loan facility that they have invested to start-up their businesses.

Policy reforms around safeguarding, credit and whistleblowing improved among the 22 financial institutions ensuring a safe environment for young people. Provide capital to 25 grassroot financial providers to ease their liquidity and build their capacity to lend to young people.

Build robust operating systems of 10 participating Financial Institutions (particularly the Tier 4 institutions) through digitization to strengthen their business models and improve operational efficiency. Strengthen the ecosystem through credit information markets to increase access to finance and catalyze enterprise growth.

Attract more long-term institutional capital into the sector to address shocks and sustainability for systemic growth. Embed continuous learning and adaptive approaches within grassroot financial service providers across the country.