Capacity Building -NPA

Grants for Small Agro Processors and Traders in Northern Uganda

Business Uganda Development Scheme – Agricultural Livelihoods Recovery Programme  (BUDS ALREP)

Back Ground
Agricultural Livelihoods Recovery Programme (ALREP) a Government of Uganda agricultural recovery initiative funded by EU is operating within the framework of the Peace, Recovery and Development Plan (PRDP). The contracting authority of ALREP is the Ministry of Finance Planning and Economic Development while the Implementing Agency is the Office of the Prime Minister. The goal of the project is to ensure that the War affected population of northern Uganda engages in productive and profitable agricultural and agri-business activities that ensure food security and increase household income.
In November 2012, PSFU signed a service contract with ALREP to implement a set of activities that will build the capacity of agro processors and produce traders to enhance processing capacity, quality and business performance in Acholi, Lango and Teso sub regions, through running a matching grant facility. The matching grant will be awarded to selected agro-output traders and processors in 100 sub counties of ALREP operational area. All grantees are required to make an own contribution of no less than 20% of the total investment value.

Targeted business for support   

 The eligible entity must be carrying out the following type of business for not less than 2 consecutive years:
•    Processing primary agricultural produce with the purpose of adding value, purchased from farmers, or from a trader who deals directly with farmers. Type of business activities might be, but is not restricted to: drying, grading, hulling, grinding, and packaging.
•    Purchasing agricultural produce directly from farmers with the purpose of bulking, drying and/or grading for onwards trading to district and regional centres.

Legal status of the businesses for support

An eligible entity might
•    be registered in Uganda under the Companies Act (1985),
•    be a cooperative formed under the Co-operative Societies Act,
•    be a trade association or similar business representative organization legally established in Uganda
•    have trading license from the sub county in which it operates

Note: Entities which are not yet registered as above are eligible if willing to register. They will have to complete a registration as indicated above before the grant is disbursed

Eligible activities that qualify for support

The following costs are eligible:
i.    Construction, renovation or modernisation of storage or processing facilities; i.e. walling, flooring or roofing of stores, ventilation, security, power and energy;
ii.    Purchasing and installation, upgrading or modernisation of post-harvest handling equipment; i.e. drying, cleaning, grading, sorting, packaging; storage; pest and disease control machinery, power and energy;
iii.    Purchasing and installation, or upgrading of processing equipment; i.e. grinding/milling, hulling, mixing, packaging, pest and disease control machinery, power and energy.
iv.    Any of the items procured under 1,2 and 3 above can be supplemented through this grant by essential small equipment; i.e. pallets, weighing scales, moisture meters, calculators, tarpaulins;

Ineligible Costs that cannot be supported by the grant

The following costs are not eligible for support:
i.    Costs outside the scope of trading and processing agricultural produce; i.e. costs directly related to enhancing agricultural production, such as land opening, inputs, agricultural tools and equipment;
ii.    Cost of establishing or improving agro input supply shops;
iii.    Repayment of debts and bank loans;
iv.    Purchase of land;
v.    Refunds towards earlier investments;
vi.    Operational costs of the business, such as labour, transport (cars and motorbikes), fuel, stock.

Grant Size

The minimum grant contribution to an eligible investment is UGX 2,720,000 (two million seven hundred and twenty thousand Uganda Shillings). And the maximum grant contribution towards an eligible investment is, UGX 34,000,000 (thirty four million Uganda Shillings).