Private Sector Foundation Uganda is managing the Business Uganda Development Scheme (BUDS-DFID) a cost sharing project funded to a tune of £13 Million by UK Department for International Development (DFID).

PSFU is implementing this Project on behalf of the Office of the Prime Minister. The project aims 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.


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.

Support is provided to business organizations involved in all sectors including agriculture, commerce, manufacturing, commercial agriculture, consultancy, business associations, services and operating in the PRDP region

Type of Support

BUDS-DFID provides financial support for Business Development Services (BDS), Skills Development including capacity building, Capital investment related activities including equipment /post harvest handling processes /storage and Plant construction. Cumulative Grant support up to a maximum of Two Hundred and Fifty Thousand Pounds Sterling (£250,000) per qualifying enterprise.


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

  1. A legal person;
  2. A company registered in Uganda under the Companies Act (1961),
  3. A cooperative formed under the Co-operative Societies Act,
  4. An NGO operating under the NGO Registration Regulations and the NGO Registration Act,
  5. Community Based Organisations (CBOs) registered in Uganda
  6. A chamber of commerce, farming association, trade association or similar business representative organisation legally established in Uganda,
  7. Vocational training institutions legally established in Uganda;
  8. Business start-ups who are registered and have invested capital

How to apply for the BUDS-DFID Support?

  1. Pass by BUDS-DFID offices (Kampala or Gulu Office) or call to make an appointment to discuss your project/activity with a BUDS-DFID officer.
  2. With assistance from the BUDS-DFID officer, determine your business situation/need for BDS (support) through a brief business diagnostic.
  3. Determine the best practical activity for your business for BUDS-DFID support.
  4.  Pick application forms from Gulu Office or Kampala offices or click www.psfuganda.org,ug  to download.
  5. All project materials including Applications forms are free of charge hence NOT for sale.
  6. Remember application forms must be submitted together with a letter of request signed by an authorized person on behalf of the enterprise.
  7. For equipment related activities, due diligence process must be conducted on prospective suppliers.
  8. Attach pro formas, invoices and bank account details for service providers and or suppliers
  9. Submit your fully completed application forms and the required attachments 2-3 weeks before the start of the activity.
  10. Refine the application and budget if need be with the BUDS-DFID officer.
  11. Sign a support agreement with BUDS-DFID which details the general regulations and deliverables required.
  12. For all BDS related activities, the Scheme provided 100% financing in two phases (50% upfront and 50% on completion).
  13. Carry out your planned activity in accordance with the agreement signed with BUDS-DFID.
  14. Prepare and submit your properly documented accountability to BUDS-DFID.
  15. Attach claim/invoice/deliverables for disbursement of funds (upfront payments and or last installment).
  16. Depending on the business needs, the beneficiary is free to make a subsequent application on another eligible activity within the stipulated maximum cumulative grant (£250,000) over the project duration.BUDS-DFID officers will provide all applicants with the necessary “hand holding “services to enable them develop grant applications, implement approved activities and accordingly make claims.

Key steps in BUDS-DFID Grants Management

  1. Application and Proposal for support received by Client Relations Officer (CRO) and registered in the registration book.
  2. CRO checks proposal to ensure eligibility/conformity together with the 2-3 weeks’ notice required before activity commences.
  3. If proposal meets criteria, CRO acknowledges receipt by stamping the same and forwarding it to the Scheme Officers (SO).
  4. A verification exercise of enterprises to determine physical presence within the PRDP will be undertaken by the Scheme.
  5. For first time applicants the verification report begins the countdown to the grant process.
  6. If the criteria are not met, the client is advised of the same and application is put on hold pending submission of all necessary requirements (checklist is available).
  7. For applications that meet the criteria, and have been verified; the Scheme Officer (SO) carries out a technical review of the proposal, making necessary changes if any before recommending the file to the Scheme Manager for approval.
  8. Scheme Manager reviews the file, making the any necessary observations and recommendations before approval.
  9. For any applications above £10,000, the Scheme Manager will review the file for appropriateness and submit the same to a Grants Committee for endorsement before the activity is approved by the Executive Director.
  10. On approval, an agreement is signed by the Scheme Manager/ or Executive Director and the beneficiary client. The agreement spells out among others the grant amount, the activity start/end dates and the required deliverables for disbursements.
  11. It is only after the signing of the agreement that the activity is binding and can be executed.
  12. No retrospective change to the Agreement is allowed unless a formal request is made and approval is given by the Scheme.
  13. Depending on the nature of the activity, disbursements will take a maximum of 15 working days.
  14. The Scheme’s mode of payment is by Electronic Funds Transfer (EFT); hence a Bank Account is necessary.

For details come to PSFU Offices or down load the BUDS-DFID Brochure under downloads below.

Gulu Office
Plot 22B Upper Churchill Drive Gulu
Tel: Tel:   256 372-280-267/ 372-280-268
Email: dkisekka@psfuganda.org.ug

Kampala Office
Private Sector Foundation Uganda (PSFU), Plot 43, Nakasero Hill Road
Tel:[+256] 0312 263850, 0312 261850, 0312 286849,  Fax[+ 256] 0312266440
P.O Box 7683 Kampala, Uganda, Email: dkisekka@psfuganda.org.ug , Website: www.psfuganda.org.ug



  1. BUDS-DFID e-newsletter October 2012 (New)
  2. BUDS-DFID – Some of the Beneficiaries in Pictures (New)
  3. Delight Uganda Ltd recieves support from BUDS-DFID (New)
  4. Kitgum Women Bee Keepers recieve support from BUDS-DFID (New)
  5. BUDS-DFID Album of Success Stories
  6. Delegates from UK visit PSFU Gulu Office
  7. Payelo Millers Recieves support from BUDS-DFID
  8. Gulu Tailors Association Recieves support from BUDS-DFID
  9. BUDS-DFID visits Lango and Acholi Sub Regions
  10. BUDS-DFID visits Lango sub-region
  11. Supplement for BUDS-DFID June 2012
  12. BUDS-DFID Newsletter June 2012 

In the Press

  1. BUDS-DFID gives out Tractors
  2. Farmers recieve Farming Implements



  2. Application Form for the Grant
  3. BUDS-DFID Proposal Guidelines
  4. Checklist for Application Requirements
  5. BUDS-DFID General Regulations
  6. BUDS-DFID Entry Survey Form

Useful Links