World Bank Boosts Uganda’s Exports Manufacturing

The Government of Uganda has received 170 billion Shillings, part of the
World Bank financing for the manufacturing and export value chains
through the INVITE Trust.
The INVITE (Investment for Industrial Transformation and Employment)
Project is a Government of Uganda (GoU) initiative financed by the World
Bank and other development partners. The Multi-Donor Trust Fund Grant
provides grant products for business development under the Private Sector
Foundation Uganda (PSFU) and financing products under the INVITE
Trust.
The money received is the first tranche of the 800 billion Shilling project,
and comes after the fulfilment of conditions precedent to disbursement and
consequently the World Bank lifting the moratorium.
This first tranche will be deployed towards the operationalisation of a
Working Capital facility through eligible financial institutions, according to
the Ministry of Finance, Planning and Economic Development.
Of the total 800 billion Shillings, 642 billion will be channelled through the
INVITE Trust for lending to the private sector through four financing
facilities. These are Working Capital, Receivables Financing or Invoice
Purchasing, Credit Guarantee, and Patient Capital in local currency.
The other 158 billion Shillings, to be managed by the Private Sector
Foundation of Uganda (PSFU), will finance grants to support business
development services for private sector enterprises in manufacturing and
export, according to Ramathan Ggoobi, the Permanent Secretary and
Secretary to the Treasury.
One of the objectives of the funds is to create 200,000 jobs in the
manufacturing and export value chains, increase incomes and support new
economic opportunities and investments, including in refugee-hosting
communities.

The move for this project was supported by a 2023 World Bank report
highlighting Uganda’s need for industrial diversification to reduce poverty
by increasing domestic output, value addition and export growth.
Bank of Uganda Governor, Michael Atingi-Ego, said the central bank would
continue supporting the INVITE Trust because of the long-term implications
of its success in the financing landscape.
INVITE will complement other government initiatives to transform and
propel Uganda’s economic growth under the tenfold growth strategy
through increasing access to affordable finance.