The Government of Uganda has received the first disbursement of UGX 170 billion from the World Bank as part of the UGX 800 billion Investment for Industrial Transformation and Employment (INVITE) Project.
This landmark financing initiative aims to enhance Uganda’s manufacturing and export value chains by increasing access to affordable finance for businesses, thereby driving industrial transformation, employment, and economic growth.
The announcement was made following a meeting of the INVITE Trust Investment Committee recently.
During the session, the Committee provided a detailed briefing to the Trustee, which included key representatives from the Ministry of Finance, Planning and Economic Development (MoFPED) and the Bank of Uganda (BoU).
The MoFPED was represented by the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, while the BoU was represented by its Governor, Michael Atingi-Ego.
The briefing focused on the fulfillment of all conditions precedent required for the disbursement of funds.
The Committee outlined the steps taken to meet these conditions, ensuring transparency and compliance with the agreed-upon terms. Both MoFPED and BoU acknowledged the progress and alignment with the World Bank’s expectations.
Following this confirmation, the World Bank officially lifted the funding conditions. As a result, it released the first tranche of UGX 170 billion, marking a significant milestone in the financing agreement and enabling further implementation of targeted programs.
This initial funding will be deployed through a Working Capital facility, channeled via eligible financial institutions to support businesses engaged in manufacturing and exporting.
The facility is part of a broader effort to stimulate Uganda’s private sector growth, in alignment with the country’s Tenfold Growth Strategy, which seeks to transform the economy by targeting high-impact sectors with strategic investment.
The INVITE Trust, which was established under the INVITE Project as a special-purpose vehicle, is responsible for managing and distributing development financing to Uganda’s manufacturing and export sectors.
The Trust will play a complementary role to existing government programs by offering targeted, affordable capital to enterprises.
The full project financing amounts to UGX 800 billion, with UGX 642 billion allocated to be managed through the INVITE Trust. This portion will be directed toward supporting the private sector through a structured disbursement approach.
Funds under the INVITE Trust will be channelled through four key financing facilities: Working Capital, Receivables Financing or Invoice Purchasing, Credit Guarantee, and Patient Capital. All these facilities will be provided in local currency to ensure accessibility and relevance to domestic market needs.
The remaining UGX 158 billion will be managed by the Private Sector Foundation Uganda (PSFU) and allocated as grants to support Business Development Services (BDS) for private sector enterprises involved in manufacturing and export value chains.
These services will include technical assistance, advisory support, and capacity-building to strengthen business competitiveness and export readiness.
Speaking at the event, Permanent Secretary Ramathan Ggoobi praised the progress made by the INVITE Trust Investment Committee and reiterated the government’s commitment to supporting the private sector.
He also acknowledged the recent onboarding of KPMG as the Trust Manager and expressed confidence in the timely operationalization of all the financing facilities under the Trust.
Bank of Uganda Governor, Dr. Michael Atingi-Ego, affirmed the Central Bank’s custodial role in the Trust’s operations and emphasized its importance in reshaping Uganda’s financing landscape.
He noted that successful implementation of the INVITE Project will have long-term implications for the country’s access to affordable finance, particularly for sectors critical to export growth and job creation.
Overall, the INVITE Project is expected to create over 200,000 private sector jobs, increase household incomes, support new economic opportunities, and attract fresh investments, including in refugee-hosting communities.
Backed by the World Bank and other development partners, including the Netherlands, the initiative marks a significant step forward in Uganda’s industrial transformation and inclusive economic development agenda.