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JICA Uganda has had a foot print in Uganda for decades addressing issues that touch every node of the sustainable development goals. Through our priority growth areas; Economic Infrastructure, Agriculture, Basic Human Needs, Northern Uganda Reconstruction and Human Resource Development, we use the most suitable assistance methods and a combined country and issue - oriented approach to provide financial and technical assistance with an aim of achieving human security and quality growth.

In line with Government of Uganda's strategies, we intend to expand our areas of support to include private sector development through the "Private Sector Investment and Finance (PSIF) scheme" to provide debt, equity, project financing and Public-Private Partnerships.

Particularly, we intend to invest in SDG-centric companies, projects and financial institutions especially focusing on either of the following areas;

1. Health Sector
2. Water / Hygiene Sector
3. Agriculture / Food Value Chain (including logistics)
4. Job Creation / Business Support / Vocational Support
5. Improvement / Redesign of Urban Space Utilization
6. Energy
7. DX / ICT Sector
8. Manufacturing
9. Empowerment of the vulnerable

It is against this background that we called for Investment Proposal concepts to evaluate business / project to include in a prospective investment pipeline, and this also applies to existing and new projects.

To execute this project, a consultant has been contracted to support in developing this investment pipeline and the PSIF Scheme. Accordingly, the consultant will be receiving and vetting all investment proposals concepts for businesses/ projects that meet the following criteria:

• Fall under the nine (9) areas listed
• Require investment for CAPEX primarily
• Require debt financing of at least US$ 10 Million
• Require equity financing of at least US$ 5 Million

On 24th May 2021, an online session was held to shed light on the opportunity and evaluation criteria so as the candidates could understand the investment opportunity before submitting their proposal concepts.

Submission of proposals closed on 28th May 2021. JICA would therefore like to extend gratitude to everyone/business/project that responded to the call. The email address, jica-opportunities@asigmacapital.com will remain functional, however, your project might miss the cut-off for the initial shortlisting process.

JICA PSIF FAQs

1. What is the interest rate?

The interest will be determined based on the currency. For USD, it's the six months LIBOR plus a project specific risk premium where as for local currency, it's the swap rate equivalent to JPY interest rate. However, historically it has been in the range of 2% - 3% p.a.

2. What is the maximum loan term for the financing?

Up to 20 years.

3. Different questionnaires were shared in the newspaper and on email. Can we have Clarity on questions 5 and 24?

An updated version of the questionnaire has been shared. However if you already submitted the old version of the questionnaire, you are not required to resubmit.

This is the link to the updated questionnaire for those who have not yet filled it in :
https://cutt.ly/snqQrkB (external link)

Question 5 is asking about the total amount of funds required by the project for the first five years.

Question 27: This is asking about the timing of the investment requirement. For example, a project may require an initial capital outlay for year 1 and then may require an additional outlay in year 4, for example. This is typical for project finance and so we would like to understand the timing of cash injections required.

4. Will capacity building be financed? Is CAPEX the primary investment?

This fund in particular is meant for CAPEX investments as well as post-investment capacity building activities to support businesses to manage the changes required to utilise the received funds.

5. Is there funding for startup projects?

This will depend on the size of the start-up project. Funding is directed towards large projects and the expectation is that a minimum capital requirement for a project be $10m.

For those with lower capital requirements, JICA will channel the funds through other financial intermediaries/ Fund managers which will disperse the money to beneficiaries that require smaller capital amounts.

6. Does JICA have any existing investments in Uganda? Is this concept proposal an information gathering prospect or are you actively investing in Uganda and these notes are for purposes of establishing the entities that meet your criteria?

• JICA has previously worked with the public sector and implemented several projects , for example New Nile Bridge, Kampala Flyover and other infrastructure, agriculture, education and health projects. This time around, JICA would like to scale up the private sector investment and finance to supplement their traditional sovereign financing.
• Through this process therefore, JICA is building a pipeline of potential projects/enterprises/ opportunities to better understand the private sector constraints in order to better structure the PSIF and make it relevant across Equity, Debt financing, and Public-Private Partnerships. This pipeline will then be used to further structure financing/investments for JICA's participation .

7. What is the maximum percentage of debt that JICA finances in total project costs?

JICA will cover a maximum of 70% debt. In principle, JICA's loan will not exceed that by the lead arranger. For PE, maximum will be 25% of total capital (PE) as a minority investor.

8. How flexible is the 25% of any equity round that JICA can take given its minimum ticket size?

A company needs to have at least $15m in existing equity commitments.

9. Is it possible to apply for both Debt and Equity?

Yes, it is possible, however, it is recommended you apply for either one, and not both.

10. Can I use the Word version of the questionnaire to provide more details and is there a page limit?

Yes, you can use the Word version of the questionnaire. There is no page limit.

11. Is there going to be feedback?

After the screening process, JICA will send feedback to all the parties.
We have shared a contact details in case of any questions. Please use :
Telephone Number: +256 705253960
Email Address: jica-opportunities@asigmacapital.com

12. Please explain what cost drivers and revenue streams are

• A revenue stream is a source of revenue for a company.
• Cost drivers main are the activities/ units that contribute most significantly to the costs in a business e.g purchase of raw materials, purchase of storage equipment, staff costs

13. For businesses that have been affected by COVID-19, how should the figures be presented?

The impact of COVID-19 during the year 2020 shall be taken into consideration when assessing the different businesses. If the business is of key interest, we shall request information for an additional historical year.

14. Is there any provision for capacity building before the loan engagement?

Capacity building activities that are post-investment will be financed if they are directly related to supporting the business to absorb and utilise the investment received. Pre-investment capacity building activties will not be financed.

15. Please provide clarity on the nature of projects that will be given consideration.

• New projects that have not yet been rolled out will be also considered
• A company can submit more than one project.
• A startup in a different scheme from a current business is acceptable.
• Partnerships between existing businesses in the market will be acceptable.

16. In Agri-business, do you only consider production?

Both production and value addition will be considered.

17. How much tenure period of financing and cost for Agri-business with a project size of 25M?

The tenure period will be on a case-by-case basis depending on the nature of the cash flow and risk of the business. Maximum loan tenor, however, is 20 years.

18. Are there any Academic scholarships?

No, that is not the objective of this scheme.