The COVID-19 Business Info Hub is sourcing information to help SMEs engaged in farming to understand what financing opportunities exist to help them stay afloat during the pandemic. Here is what you need to know about ABI’s business initiatives for SMEs.

How is ABI supporting SMEs during COVID-19?

Due to the prevailing financial situation caused by COVID-19, it is nearly impossible for farmers to access credit without collateral limitations, very high interest, and other unfavorable terms. ABI Finance offers an Agriculture Loan Guarantee Scheme (ALG) for financial institutions in order to promote agribusiness financing to SMEs and expand lending to the sector. Through the ALG, ABI Finance shares losses incurred in case a farmer fails to pay his/her agricultural loan and in situations where a farmer has inadequate collateral for the loan. Farmers apply for a loan from any financial institution that is an ABI implementing partner. Farmers must have collateral representing 30% of the loan amount, and the guarantee scheme covers the remaining 70%.

 

What are the benefits of the guarantee to SMEs in Agriculture?

The ALG is beneficial to SMEs because it allows them access to finance, reduces collateral requirements, and allows expansion of lending to the perceived riskier areas in agriculture. The ALG is provides a maximum cover of 50% of loss of principal outstanding with a maximum loan amount of USh500 million

  • The Guarantee helps the small-scale farmers without sufficient collateral to obtain loans from financial institutions at reasonable terms, since the loans are already secured against possible financial loss of the principle amount.
  • ABI assists farmers and farmer groups establish market opportunities, maintain quality standards, bulking and aggregation and contract farming.
  • ABI connects the small holder farmers to the market linkages with off-takers.
  • Under the guarantee, the small holder farmers are trained how to use production enhancing techniques like use of modern agricultural practices.

How you can access this facility?

This facility is available through ABI’s implementing partners. Contact your financial institution for more information about this guarantee facility or contact ABI directly for more information (below).

Contact Details: UMOJA House, 2nd Floor, Plot 20, Nakasero Road. P.O Box 29851, Kampala, Uganda

Tel: +256 (0) 312 351600 Email: info@abi.co.ug Website: www.abi.co.ug

Engeri ekibiina ki Agricultural Business Initiative (ABI) nga kino kitunuulira eby’obulimi n’obulunzi ng’omulimu ogusobola okuvaamu ensimbi gye kiyambamu amakolero n’eby’obusuubuzi ebitonotono (SMEs) okusobola okufuna okuyambibwa mu by’ensimbi ku magoba amasaamusaamu mu kiseera kya sennyiga omukambwe.

Omukutu gwa Covid-19 Business Info Hub guli mu kukungaanya amawulire agasobola okuyamba ku amakolero n’eby’obusuubuzi ebitonotono ebyenyigira mu by’obulimi n’obulunzi zisobole okutegeera amakubo agaliwo mwe ziyinza okufunira okuyambibwako mu by’ensimbi zisobole okusigala nga zikakkalabya emirimu mu kaseera kano aka nnawookeera wa sennyiga omukambwe Bino bye weetaaga okumanya ku kibiina ki ABI bye kitegekedde amakolero n’eby’obusuubuzi ebitonotono.

ABI eyambye etya amakolero n’eby’obusuubuzi ebitonotono mu kiseera kya sennyiga omukambwe?

Olw’embeera y’eby’enfuna eyaleetebwa sennyiga omukambwe, abalimi n’abalunzi kibabeeredde kizibu nnyo okwewola ssente ne batakaluubirizibwa olw’emisingo, amagoba agali waggulu ennyo n’emiziziko emirala mingi. Bwetyo ABI yateekawo omutemwa gwe yayita Agriculture Loan Guarantee Scheme (ALG) ng’eyita mu bitongole by’eby’ensimbi okusobola okutumbula embeera y’okuteeka ssente mu by’obulimi n’obulunzi wamu n’okusobozesa abagwa mu ttabi eryo okwewola ssinga baba n’obwetaavu.

Ng’eyita mu ALG, ABI finance nayo ebeera evunaanyizibwa mu mbeera y’okufiirizibwa ssinga wabaawo omulimi oba omulunzi alemereddwa okusasula ebbanja lye wamu n’oyo abeera talina musingo gutegeerekera.

Omulimi oba omulunzi asobola okusaba okwewola ng’ayita mu kitongole ky’eby’ensimbi kyonna ekimwanguyira kasita kibeera nga kikolagana ne ABI. Oteekeddwa okubeera n’omusingo nga guweza ebitundu 30% eby’omuwendo gw’oyagala okwewola olwo kyo ekibiina ne kiteekayo ebitundu 70% ebisigadde.

 

Omutemwa guno amakolero n’eby’obusuubuzi ebitonotono ebyegira mu by’obulimi n’obulunzi zigufunamu zitya?

ALG ya mugaso nnyo eri amakolero n’eby’obusuubuzi ebitonotono kubanga ezisobozesa okufuna amabanja, okukendeeza ku misingo egiteekebwayo nga beewola wamu n’okuwola abo abeenyigira mu mirimu egirowoozebwa nti gitera nnyo okusanga obuzibu.

ALG esobola okweyimirira ebitundu 50% mu mbeera y’okufiirizibwa ssente ezikuwoleddwa ate ng’omuntu asobola okuweebwa ebbanja eriwerera ddala Ush obukadde bitaano (UGX 500m).

  • Omutemwa guno guyambako abalimi abalima ebintu ebitonotono era nga tebalina misingo gitegeerekeka okusobola okwewola mu bitongole by’ensimbi ku bukwakkulizo obosoboka olw’okuba nti amabanja gano ABI egeeyimirira ssinga wabaawo embeera y’okufiirizibwa.
  • ABI eyambako abalimi ssekinnoomu wamu n’ebibiina by’abalimu mu kunoonya obutale, okukuuma omutindo, okusolooza n’okukungaanya ebirime okuva mu balimi ab’enjawulo kko n’okubafunira abaguzi.
  • ABI ekola nga kayungirizi wakati w’abalimi abalima ebintu ebitonono eri akatale ka ba naggwano.
  • Nga bayita mu mutemwa guno, abalimi abalima ebintu ebitonotono batendekebwa mu bukodyo obusobola okubayamba okutumbula amakungula gaabwe gamba nga okukozesa ennima ey’omulembe.

Enkola eno osobola otya okugituukako?

Enkola eno osobola okugifuna ng’oyita mu bitongole by’ensimbi ebikolagana ne ABI. Tuukirira ekitogole ky’okolagana nakyo osobole okumanya ebisingawo.

Osobola okutuukirira ABI yennyini ku ndagiriro eno;

Ku kizimbe kya Umoja, omwaliiro ogw’okubiri ku luguudo lw’e Nakasero,

P.O Box 29851, Kampala, Uganda

Essimu: +256 (0) 312 351600 Email: info@abi.co.ug Website: www.abi.co.ug