UGEFA Phase II Kick-Off to Accelerate Green Business Growth in Uganda

Micro, small and medium sized enterprises (MSMEs) account for around 90% of the private sector, employ over 2.5 million people, and contribute 20% to the Gross Domestic Product (GDP). They are crucial drivers of the green transition in the private sector by developing eco-innovations and integrating marginalised communities into their value chains. 

Yet, green MSMEs face challenges in accessing growth finance due to limited financial expertise and a lack of tailored financial services. Launched in 2020, the Uganda Green Enterprise Finance Accelerator (UGEFA) addresses these challenges by building financial capacity and establishing an Access-to-Finance facility to reduce financing risks for green enterprises. 

Improved Access to Finance for Green Enterprises in Uganda

Since its inception, UGEFA has supported 206 growing green MSMEs across various sectors, partnering with six local banks to finance their growth projects. In Phase I, 102 enterprises secured loans facilitated by UGEFA, totalling over 31.8 billion UGX (8.3 million euros).

The European Union Delegation to Uganda and adelphi global gGmbH have now announced the launch of Phase II of UGEFA that they will implement. UGEFA's next four years will focus on enhancing the capacity of Ugandan enterprises to implement impactful green business models, improving their access to finance, and strengthening the entrepreneurial ecosystem. 

“The EU is proud to back UGEFA Phase II, driving business-led climate solutions. By unlocking funding for green MSMEs, we’re sparking innovation, boosting private sector action, and creating both economic and environmental wins. This is about real impact—tackling climate challenges while building a stronger, more inclusive future,” stated the Ambassador of the European Union to Uganda, Jan Sadek.

Strengthening Partnerships for Sustainable Growth

Funded by the European Union Delegation to Uganda, UGEFA supports MSMEs through tailored business advisory packages, equipping them with the necessary tools and knowledge to scale their operations and maximise their environmental, social, and economic impacts. The programme will facilitate access to finance for 150 enterprises by developing innovative blended grant/loan financial instruments in collaboration with partner financial institutions. 

UGEFA Phase II aims to strengthen existing partnerships with business advisors, financial institutions, and the broader entrepreneurial ecosystem. By leveraging these relationships, the programme seeks to create a robust support network for green enterprises, fostering collaboration and innovation across the sector and ensuring widespread, sustainable benefits.