BUDS-DFID

PRIVATE SECTORFOUNDATION UGANDA

Your Partner in Private Sector Led Development

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Before After

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SOUTH BASE INDUSTRIES – BUTALEJA; received 12 new ginning machines with support from BUDS - DFID.

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What is BUDS-DFID?

BUDS-DFID (Business Uganda Development Scheme) is a cost sharing project funded to a tune of £13 Million by UK Department for International Development (DFID) and implemented by PSFU on behalf of the Office of the Prime Minister. The funding is channelled through the Office of the Prime Minister to support the economic recovery under the Peace Recovery and Development Programme (PRDP) that targets 55 districts of the Greater North. Implementation of the project started in 2011 and completion is expected in 2015. The project is aimed to stimulate economic growth in the PRDP region.

What is the Goal of BUDS-DFID?

To promote private sector growth, investment and employment opportunities under the PRDP sub-regions in Acholi, Lango, Teso, West-Nile, Karamoja, Bukedi and parts of Bunyoro sub-regions.

What are the objectives of BUDS-DFID?

• Increase in the number of rural enterprises investing in agricultural production, processing and other economic sectors

• Increase the number of labour-intensive industries leading to employment creation • Reduce and eliminate gaps in the supply chain leading to processed agricultural products• Support linkages between investors and the local economy through the supply of raw materials,

employment and training • Promote trade by rural enterprises including trade outside of their locality

How much support does BUDS-DFID offer

Cumulative Grant support is up to a maximum of Two Hundred and Fifty Thousand Pounds Sterling (£250,000) per qualifying enterprise.

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A brand new Tractor procured by the Naburri –Farm Ltd in Nakapiripiriti District with the Support from BUDS-DFID.

Who are the Partners in this Project• Government of Uganda through the Office of the

Prime Minister (OPM)• Government of the United Kingdom through the

Department for International Development (DFID)• Private Sector Foundation Uganda (PSFU)

Who/what qualifies for the Grant?

Business organizations involved in all sectors including agriculture, commerce, manufacturing, commercial agriculture, consultancy, business associations, services operating in the PRDP region qualify for the support.

A grant will be given out to an applicant after being appraised based on the following criteria:

• A legal person; • A company registered in Uganda under the Companies Act (1961), • A cooperative formed under the Co-operative Societies Act, • An NGO operating under the NGO Registration Regulations and the NGO Registration Act,• Community Based Organisations (CBOs) registered in Uganda• A chamber of commerce, farming association, trade association or similar business representative organisation legally

established in Uganda, • Vocational training institutions legally established in Uganda; • Business start-ups who are registered and have invested capital

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GULU TAILORS’ ASSOCIATIONreceived BUDS-DFID support to acquire equipment for their training centre and individual members.

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What Categories are Eligible for Support?

1. Business Development Services (BDS)2. Skills Development including capacity building3. Capital investment related activities including equipment /post

harvest handling processes /storage4. Plant construction

What Activities are Eligible for Support?

• Assessingthefeasibilityofaninvestmentinpost-harvesthandlingequipment,drying/re-drying,cleaning,sortingandstorageequipment,qualitycontrolequipment,andagro-processing equipment.

• Investmentinpost-harvesthandlingequipment,drying/re-drying,cleaning,sortingandstorageequipment,qualitycontrolequipment,andagro-processingequipment.

• Trainingintheuseofpost-harvesthandlingequipment,drying/re-drying,cleaning,sortingandstorageequipment,andagro-processing equipment.

• Trainingforfarmers/farmersgroupstounderstandandmeetthequalitystandardsofagro-processors

• Promotionoffarmersgroupsmarketinginitiativesandthedevelopment of farmers groups to market and maintain quality standards.

• Investmentandtraininginthedevelopmentofsystemsforimprovedmarketinformationflowstobothfarmersandagro-processors

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SENSITISATION MEETING ON BUDS-DFID

Manager BUDS-DFID Daniel Kisekka at a sensitisation meeting in Northern Uganda.

• Investmentandtrainingtodevelop regional trade linkages: including systems for the dissemination of up-to-date and relevant market information and trading opportunities to traders within the northern region.

• Investmentindemonstrationprojects and publication of information to ensure success stories are replicated.

• Investmentandtrainingfornetworking and information exchange between farmers groups, traders and processors

• Valueadditionofcommercialagriculture products and by-products such as shea nuts, wheat, milk, barley, fruits, etc.

• Brandingforthedomesticandexport markets.

• Businesstrainings• BusinessSupportservices

aimed at improving firm level competitiveness

• Prioritywillbeaccordedtoprojects generating positive multipliers or those with the highest potential for replication.

How do we define MSMEs and Large Enterprises under BUDS-DFID?

PSFU has applied the Commonwealth definitions for the local enterprises as follows:

1. A Micro enterprise will be that one employing a maximum of 4 people; annual sales/revenue turnover of maximum Ugandan Shillings 12 million and total assets of maximum Ugandan Shillings 12 million.

NOTE:Eachactivityorprojectproposed should not take longer than 24 months of implementation

7BUDS-DFID also supports value addition under Agriculture 7

2. ASmallEnterpriseistobedefinedasanenterpriseemployingmaximum 50 people; annual sales/revenue turnover of maximum Ugandan Shillings 360 million and total assets of maximum Ugandan Shillings 360 million.

3. AMediumEnterpriseistobedefinedasanenterpriseemployingbetween 50 and 70 people; annual Sales/revenue turnover of morethanUgandanShillings360-500millionandtotalassetsofnot exceeding Shillings 500 million.

4. A large enterprise is to be defined as an enterprise employing more than 70 people with annual Sales/revenue turnover of more than Ugandan Shillings 500 million and total assets of more than Uganda Shillings 500 million.

Grant Methodology/Criteria

•Allbusinessdevelopmentservices,skillsdevelopmentrelatedactivities for above applicants will be funded by the Scheme 100%.

•ForCooperatives,Associations,MicroandSmallEnterprises,a20/80cost share grant arrangement will apply on all capital investment relatedactivitieswiththeSchemefunding80%oftheactivitybudget.

•ForMediumenterprises,a30/70costsharegrantarrangementwillapply on all capital investment related activities with the Scheme funding 70% of the activity budget.

•ForthelargeEnterprises,a40/60costsharegrantarrangementwillapply on all capital investment related activities with the Scheme funding 60% of the activity budget.

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Hand Holding Services by BUDS DFID Team. (i.e completion of scheme forms, support during activity implementation & during reimbursement process.)

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ADDITIONALCRITERIAFORGRANTSOFUGS100MILLIONORMORE.

AMOUNT (EITHER)ForDirectJobCreated

(Or)IndirectJobsCreated

UGX. 100-500 millon 11 (+ Direct jobs) 250 (+ indirect Jobs)

Above UGX. 500million 58 (+ Direct jobs) 500 (+ indirect Jobs)

Modality for Funding

•Forallbusinessdevelopmentservices and skills development activities, the Scheme will advance 50% of eligible costs upfront and 50% on completion of the activity to the service provider(s).

•Forallcapitalinvestmentrelatedactivities, the Scheme will advance its contribution directly to the client’s chosen suppliers.

• TheSchemewillconsiderbothcashandin-kindcontributiontowards the cost of executing the activities.

Who/What activities are not Eligible for Support?

(a) Applicants operating in the production of weapons

(b) Gamblingrelatedactivities(c) All Applicants outside the

definedPRDPsubregions(d) Activities that may give rise to

direct or indirect benefit to only a single commercial enterprise;

(e) Activities that could incite tension.

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Atek Ki Lwak Savings & Credit Co-op. Society. BUDS supported the group for a training in commercial mushroom growing & formalizing structures

PEYERO MILLERS LTD IN GULU. A newly procured and installed rice processing unit supported by BUDS-DFID.

(f) Activities that conflict, either directly or indirectly, with the policies of the Government of Uganda or the Government of the United Kingdom or that may be linked to a prejudicial image.

(g) Debts and provisions for losses or debts; interest owed; items already financed in another framework; purchases of land or buildings, currency exchange losses; and taxes, including VAT

What other services does BUDS-DFID offer?

TheBUDS-DFIDstaffwillprovideyouwithhandholdingandadvisoryservices(i.e. fulfilling of all scheme requirements, completion of scheme forms, support during activity implementation and during the reimbursement process).

DoesBUDS-DFIDconsiderin-kindcontributions? Yes, in kind contributions shall be acceptable but these must be justified and based on local market rates.

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Districts targeted that quality for the BUDS-DFID Support

BUDS-DFIDtargets55Districtsand9MunicipalitiesunderPostConflictRecoveryDevelopmentPlan(PRDP).Theyinclude; a) Acholi sub-region; Amuru , Gulu, Kitgum, Pader, Gulu Municipality, Agago, Lamwo, Nwoya

b) Bukedi sub-region; Budaka, Busia, Butaleja, Pallisa , Tororo , Tororo Municipality, Kibuku , Busia Municipality

c) Bunyoro sub-region; Buliisa, Masindi, Kiryandongo, Masindi Municipality

d) Elgonia sub-region; Bududa, Bukwo, Kapchorwa, Manafwa, Mbale , Sironko, Mbale Municipality, Bulambuli, Kween

e) Karamoja sub-region; Abim, Kaabong, Kotido, Moroto, Nakapiripirit, Moroto Municipality, Amudat, Nakpak

f) Lango sub-region; Amolatar, Apac , Dokolo, Lira, Oyam, Lira Municipality, Otuke, Alebtong, Kole,

g) Teso sub-region; Amuria, Bukedea, Kaberamaido, Katakwi, Kumi, Soroti, Soroti Municipality, Serere, Ngora

h) West-Nile sub-region; Adjumani, Arua , Koboko, Moyo, Nebbi, Arua Municipality, Yumbe, Maracha, Zombo

Steps involved in BUDS-DFID Grants Management

n Application and Proposal for support received by Client Relations Officer (CRO) and registered in the registration book.

n CRO checks proposal to ensure eligibility/conformity together with the 2-3 weeks’ notice required before activity commences

n If proposal meets criteria, CRO acknowledges receipt by stamping the same and forwarding it to the Scheme Officers (SO).

n Countdown begins with the stamped date.n If the criteria is not met, the client is advised of the same and application is put on hold pending submission of all

necessary requirements (checklist is available).n For applications that meet the criteria, the Scheme Officers (SO) carries out a technical review of the proposal,

making necessary changes before recommending the file to the Scheme Manager for approvaln Scheme Manager reviews the file, making the necessary observations and recommendations before approval n On approval, an agreement is signed by the Scheme Manager and the Beneficiary. The agreement spells out

the activity start/end dates and the required deliverables for reimbursement.n It is only after the signing of the agreement that the activity can be executed.

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BUDS-DFID STAFF

DANIELKISEKKA-MANAGER

ROBINAHNAMIREMBE

SAMALIEK.BWANIKA

LUCILEMARANZI

JOHNK.ABAHO FREDINGA.

ANDREWGALIWANGO

OBALIWILFREDJWEE

JOSEPHNAINGO

JOHNNUWAMANYA

LUCYAKULLOMUGISHA

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n On completion of activity and submission of the necessary deliverables, processing reimbursement will take a maximum of fourteen working (14) days

n TheScheme’smodeofpaymentisbyElectronicFundsTransfer(EFT);hence a Bank Account is necessary.

How to apply for BUDS-DFID Support?

nPassbyPSFUoffices(KampalaorGuluOffice)orcalltomakeanappointmenttodiscussyourproject/activitywithaBUDS-DFIDofficer.

nWithassistancefromtheBUDS-DFIDofficer,determineyourbusinesssituation/need for BDS through a brief business diagnostic.

nDeterminethebestpracticalactivityforyourbusinessforBUDS-DFIDsupport.

nPickapplicationformsfromGuluOfficeorKampalaofficesorclickwww.psfuganda.org,ug to download.

nRememberapplicationformsmustbesubmittedaccompaniedwitha letter of request signed by an authorized person on behalf of the enterprise.

n Submit your fully completed application forms and the required attachments – two weeks before the start of the activity.

nRefinetheapplicationandbudgetwiththeBUDS-DFIDofficernSignanagreementwithBUDS-DFID.n Carry out your planned activity in accordance with the agreement signedwithBUDS-DFID.

nPrepareandsubmityourproperlydocumentedclaimtoBUDS-DFID.nReceiveyourclaimapproved.nBUDS-DFIDofficerswillprovideallapplicantswiththenecessaryadvice

to enable them develop grant applications, conduct approved activities and make claims for payment.

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Formoreinformation:Visit our website on www.psfuganda.org.ugOr contact: GULUOFFICEBUDS-DFIDPlot22BUpperChurchillDriveGuluTel:256372-280-267/372-280-268Email:dkisekka@psfuganda.org.ug

SUPPORTEDBYOFFICEOFTHEPRIMEMINISTER,ANDFUNDEDBYUKDEPARTMENTFORINTERNATIONALDEVELOPMENT(DFID)

OR

KAMPALAOFFICEPrivateSectorFoundationUganda(PSFU),Plot43,NakaseroHillRoadTel:[+256]0312263850,0312261850,0312286849,Fax[+256]0312266440P.OBox7683Kampala,Uganda,Email:dkisekka@psfuganda.org.ug,Website:www.psfuganda.org.ug

All BUDS-DFID Project Information materials are FREE OF CHARGE