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Access to affordable credit is a significant hurdle for MSMEs in Uganda, with 70% of MSMEs facing unmet credit demands. Among these, 31% of micro, 21% of small, and 10% of medium-sized businesses cite access to finance as their biggest challenge. This is primarily attributed to high collateral requirements, insufficient financial records, lack of credit histories, and limited support tailored to small enterprises. Many of these businesses operate informally, leaving them excluded from mainstream financing. Consequently, their growth is stunted, and they cannot fully contribute to economic development.

The main objective of this EOI is to ensure that fintech lenders have increased liquidity to finance micro and small businesses, technology startups, and aspiring entrepreneurs, with a special focus on MSMEs owned or led by women, youth, and persons with disabilities (PWDs) in Uganda.

This intervention targets innovative, data-driven financiers of MSMEs, including mobile network operators (MNOs), device distributors or financiers, financial service providers (FSPs), and financial technology service providers (collectively referred to as fintech lenders). These entities are invited to borrow from the facility at concessional rates to provide on-lending services to the targeted market segment. The concessional loans will enable data-driven fintech lenders to directly on-lend to MSMEs owned or led by women, youth, and PWDs.

UNCDF aims to identify and support up to 10 data-driven fintech lenders through concessional loans, with the goal of expanding access to finance and promoting digital adoption. This initiative is expected to drive MSME growth and generate increased employment opportunities.

The concessional loans will be given exclusively to data – driven (fintech) lenders for on-lending to MSMEs, owned and/or led by women, youth, and/or persons with disabilities (PWDs), either directly or via intermediaries such as Entrepreneur Support Organizations (ESOs), Village Savings and Loan Associations (VSLAs), and other membership-based groups. 

Importantly, data – driven (fintech) lenders can only access this financing for two specific purposes: i) working capital and/or ii) device financing. MSMEs cannot use these funds for any other purpose(s).

The EOI is exclusively open to data-driven (fintech) lenders with an established presence in Uganda, actively serving MSMEs within the country. The Applicant may submit proposals either as a single entity or on behalf of a partnership or consortium, with clearly defined roles and responsibilities for each participating organization.

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Please submit your proposal through this e-investment platform. Incomplete submissions or submissions using other templates or sent by other electronic or non electronic means will not be eligible. 

For more information please download the following documents:

1. Expression of Interest (EOI)
2. Instructions to TOR Applicants
3. EOI Application Questions Form (Please note that this may be referred to as the application form.)
   
4. General Terms and Conditions of the Loan Agreement
5. Loan Pre-Assessment Template
6. CV Template
7. Risk Assessment Tool for Private Sector

For queries write to the following address: queries@uncdf.org with the following subject: 240120 - UGA - Invitation for Data-driven Fintech Lenders to Apply for UNCDF Financing to Support MSMEs Led or Owned by Women, Youth, and Persons with Disabilities (PWDs) in Uganda