FSD Uganda calls on non-bank financial actors to support businesses affected by Covid-19

The Executive Director of Financial Sector Deepening Uganda, Rashmi Pillai has asked non-bank financial institutions to come out and support businesses that are collapsing due to the the adverse effects of Covid-19.

Ms Pillai made the call on Tuesday during the launch of the Deal Flow Facility (DFF) project which is aimed at increasing investment in medium companies in Uganda.

She said since last year in March, businesses globally are economically suffering from consequences of the pandemic.

Ms Pillai said the effects have lead to aggregate consumer demand going down thus making companies take on huge losses, employees are being laid off or being underemployed.

“We are currently facing a resurgence of Covid-19. The patterns of the health crisis and the related longer-term economic effects cannot be predicted accurately. But one thing remains clear – the link between the private sector growth and resilient societies continues to become stronger. As economies the world over continue to adapt to the effects of the Covis-19 pandemic.It is becoming increasingly clear that a robust private sector – driven by the digital economy is key to building resilient societies that can prosper equitably,” she stated.

“This is the time for non-bank financial actors like the Private Equity and Venture Capital to come and support the longevity of these businesses, their growth and enable long-term job creation.”

Ms Pillai also noted that one of the aims that lead to the formation of the Deal Flow Facility is to increase non-bank financing into growing Ugandan businesses.

“The facility will increase investment in medium to large companies in Uganda by helping them become “investment ready’’ providing business development services to at least 220 high-potential companies over the next five years. These companies will be supported to put in place adequate governance, accounting and operational structures that will guarantee growth and scale.”