Uganda Rural Challenge Fund (KfW)


KfW has joined the first sponsors of the Trust with an agreement to fund a Rural Challenge Fund which will act as a catalyst to incentivize financial institutions to make the necessary investment into innovations that enhance provision of financial services to the rural agriculture and Micro, Small and Medium Enterprises (MSME) sectors.

The Governments of Germany and Uganda decided to set up the Rural Finance Enhancement Programme (RFEP) to improve access to sustainable and demand-driven financial services for the rural population and rural MSME in Uganda. This is to contribute to the deepening and broadening of the financial sector in Uganda, as well as to the development of the private sector, thus fostering the improvement of the economic and social conditions of rural population in Uganda.

Under this framework, KfW has established the Uganda Rural Finance Facility of which the Uganda Rural Challenge Fund (URCF) is the first component.

KfW commenced its activities under the Rural Finance Enhancement Programme (RFEP), a 3 year programme with a kick off meeting in November 2012.The Rural Challenge Fund is the major component of the programme. The Fund will provide partial grants for development of new financial products and business approaches for rural financing.

Rural Challenge Fund is established under aBi Trust and managed by Frankfurt School of Finance & Management on behalf of KfW.