The Productivity Enhancement Competitiveness- Matching Grant Facility Uganda (PEC-MGFU) is one of the sub-component activities under of the Competitive and Enterprise Development Project (CEDP) for Uganda. The CEDP is a project of the Government of Uganda co-financed by the International Development Association of the World Bank Group (IDA).

CEDP overall Objective

The overall objective of the CEDP is to support enterprise capacity development and investment climate reforms as prerequisites for the acceleration of economic growth in Uganda. The MGF is in direct support of this project objective, within component four of the project (“Enhancing Enterprise Competitiveness, by providing a matching grants facility for MSMEs innon-traditional exports and coffee which are part of the high potential sub-sectors including tourism, coffee, grains and pulses, horticulture, edible oils, fisheries, IT services/Business Process Outsourcing.

Specific Objective of the PEC Competitiveness Matching Grant Facility

The specific objective of the PEC MGF is to enhance enterprise competitiveness by enabling MSMEs access matching grants of up to 50% towards use of sub-sector specific Business Development Services (BDS), skills development and increasing productivity through raising standards at the firm level.

Under the MGF, individual firms will be assisted to access business development services in order to address critical challenges from introduction of international standards such as ISO and HACCP to consumption. The funds will be used towards accessing technical assistance to provide training in management, business plan preparation, marketing, record keeping and finance and production techniques and technologies in order to improve quality in the sub-sector. To this end, the MGF will support innovation, managerial and technologies and knowledge upgrade, enhancement of market intelligence and access, and strengthening of backward and forward linkages. The MGF will also encourage both the adoption and the implementation of world class industry standards, norms and ratings.

Support to sub-sector business associations will also be provided. Smaller firms may access it through their business associations. It will also target women owned businesses. The MGF will also support the development of local support services, by extending similar cost-sharing grants to service providers to support trainings and new service development costs.

Location of the MGF

The Unit is located at the Private Sector Foundation Uganda office located at plot 43, Nakasero Road, P.O Box 7683 Kampala.The Unit is working in collaboration with other private sector offices in the following regions: Northen – Gulu, Western – Hoima, Southern- Mbarara and Eastern- Mbale.

MGF Activities

a) Marketing of the MGF amongst Ugandan Private Sector including areas outside Uganda.
b) Direct assistance to individual firms, with the Unit itself providing the direct business advice;
c) The provision of matching grants to of up to US$ 100,000 to firms, for the use of specialized services
d) Regular Monitoring of Progress.