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Abidjan, Ivory Coast, 11 November 2020 – The African Development Bank and the Government of Uganda have signed a $ 500,000 grant agreement to finance micro, small and medium-sized enterprises (MSME) to strengthen trade links on the technical assistance project for the Africa pipeline Oriental.
The overall goal of the project is to help build the capacity of local Uganda MSMEs along the East African crude oil pipeline, enabling them to access new market opportunities and build connections with larger, national companies , regional and international. The project aims to support the inclusive growth of the private sector and the creation of around 500 jobs along the way.
Through the Fund for Assistance to the African Private Sector (FAPA), the Bank will contribute $ 500,000 to the project. The government of Uganda through the Petroleum Authority will provide counterpart funding. A similar project is nearing completion on the Tanzanian side of the border.
The grant was provided in response to a request from Uganda and Tanzania for assistance in preparing local business communities to be able to retain a portion of the $ 3.5 billion investment in building a oil pipeline from Hoima in western Uganda to Tanga, on the Tanzanian coast, agreed in 2016. This was followed recently by the signing of an agreement in September 2020 between the two governments, for the project to be undertaken by Total E&P as the main private sector developer.
The grant agreement was signed on 17 September by the bank’s senior vice president and chief financial officer Swazi Tshabalala on behalf of the African Development Bank and by Matia Kasaija, Ugandan Minister of Finance, Planning and Economic Development.
The goal is to have at least 100 local micro-enterprises in Uganda and Tanzania trained to do business on the pipeline project. It is also planned to link at least 70 commercial enterprises or other relevant commercial transactions undertaken on the pipeline. As the number of companies joining oil supplier databases in both Uganda and Tanzania increases, it would also create new job opportunities for around 500 people.
FAPA is a multi-donor thematic trust fund providing funding for technical assistance and capacity building to support the implementation of the Bank’s private sector development strategy. Japan, Austria and the African Development Bank actively contribute to the Fund, which to date has provided over $ 69 million to 87 projects in over 38 countries on the African continent.
The FAPA portfolio includes regional and national projects aimed at improving the business environment, strengthening financial systems, building private sector infrastructure, promoting trade and the development of micro, small and medium-sized enterprises. Further information on FAPA can be obtained from the following link https://www.afdb.org/en/
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