Group raises Shs658b to for E.A businesses

 

 

Ministry of Energy Permanent Secretary Fred Kabagambe Kaliisa (3rd L) on a fact finding mission at Karuma Hill Exploration Area in Kiryandongo District where new mineral traces were recently discovered. PHOTO BY Stephen Wander

 By STEVE MBOGO

In Summary

Priority will be given to businesses that can match the grant applied for, usually a minimum of $250,000 to $1.5 million.

A new $250 million (Shs657.5 billion) fund has been announced to be given in grants and interest-free loans to businesses across East Africa.

 

Businesses that qualify in a competition to provide renewable energy solutions in rural areas and enable small-scale farmers to adapt to climate change through projects like irrigation and widening financing opportunities for small businesses in the region, will benefit.

The $250 million fund managed by KPMG and fundraised under the umbrella of Alliance for a Green Revolution in Africa (Agra) was announced by the Africa Enterprise Challenge Fund (AECF).

Priority will be given to businesses that can match the grant applied for, usually a minimum of $250,000 to $1.5 million. The matching does not necessarily have to be in capital commitment but also in kind.

But businesses that commit to match the fund with an equivalent cash injection will be given higher scores.

“Matching is important because the business must share the risk with the fund. The fund money being soft money makes it easier for the qualifying business to easily get further funding from the banks as the banks will be willing to chip in,” said Hugh Scott, the director of AECF