Uganda’s ambitious ‘Tenfold Growth Strategy’ received a huge boost after the government announced the release of the first tranche of Shs170 billion from the World Bank, earmarked to revolutionise the country’s manufacturing and export value chains through the newly operationalised INVITE Trust.
This pivotal funding marks a critical step towards unlocking Uganda’s economic potential and creating hundreds of thousands of jobs.
The Investment Committee overseeing the INVITE Trust met on Tuesday to brief the Trustees, who include Mr. Ramathan Ggoobi, Permanent Secretary/Secretary to Treasury (MoFPED), and Governor Michael Atingi-Ego of the Bank of Uganda (BoU), on the fulfilment of disbursement conditions.
The released Shs170 billion will be strategically deployed towards operationalising a crucial Working Capital facility through eligible Financial Institutions, providing an instant lifeline to vital sectors.
Unlocking Uganda’s Economic Transformation
The INVITE Trust was established as a special-purpose vehicle under the broader Investment for Industrial Transformation and Employment (INVITE) Project.
Its core mandate is to provide and facilitate development financing, specifically targeting the manufacturing and exporting sectors.
This program is a cornerstone of the Government of Uganda’s drive to propel economic growth by dramatically increasing access to affordable finance for businesses that are vital for national development.
The INVITE Project aims to create over 200,000 private sector jobs within the manufacturing and export value chains.
Beyond job creation, it aims to significantly increase incomes, foster new economic opportunities, and stimulate investments, including within refugee host communities, aligning economic growth with social inclusion.
The total World Bank financing for this transformative project stands at Shs800 billion. Of this, Shs642 billion will be channelled directly through the INVITE Trust for lending to the private sector, accessible via four distinct financing facilities:
Working Capital: To boost day-to-day operational liquidity.
Receivables Financing or Invoice Purchasing: To improve cash flow for exporters.
Credit Guarantee: To mitigate lending risks for financial institutions.
Patient Capital: Providing long-term, flexible investment in local currency.
Complementing these lending facilities, Shs158 billion will be managed by the Private Sector Foundation of Uganda (PSFU) to finance crucial grants that support Business Development Services (BDS) for private sector enterprises engaged in manufacturing and exporting value chains.
Leadership Endorsement and Strategic Vision
Speaking at the event, Mr. Ramathan Ggoobi, Permanent Secretary/Secretary to the Treasury, lauded the progress reported by the INVITE Trust Investment Committee.
“This project highlights the government’s unwavering determination to increase access to affordable finance,” Mr. Goobi said, adding that he now anticipates the full operationalisation of all financing facilities.
He particularly commended the Investment Committee for the recent onboarding of KPMG as the Trust Manager, signalling robust governance.
Bank of Uganda Governor, Michael Atingi-Ego, reaffirmed the Central Bank’s steadfast support for the INVITE Trust.
He underscored the program’s long-term implications for Uganda’s broader financial landscape and highlighted the Bank of Uganda’s custodial role in ensuring the seamless and effective functioning of the INVITE Trust.
He noted that this initial Shs170 billion represents more than just a financial injection; it is a powerful catalyst for industrialisation, job creation, and sustainable economic growth that will reverberate across Uganda, moving the nation closer to its ambitious development goals.