The UK government offers various support to UK based businesses willing to export to Uganda. Eligibility criteria applies to qualify for support.
Some of the schemes include:
- Export Working Capital Scheme: This is support available in form of a guarantee provided to a bank, so that UK exporting companies can access the extra working capital they might need to deliver a sizeable export contract. The maximum value of the finance must be no more than 75% of the export contract’s value, and advances must be used only for the purpose of paying or reimbursing the exporter for expenses incurred performing that contract. Banks pay a guarantee fee to United Kingdom Export Finance(UKEF) which is a proportion of the interest margin received from the UK exporter.
- Bond Insurance Policy: This is an insurance policy that is available to a UK based exporter (with at least 20% of contract value being UK content) to protect them against a demand for payment under a bond which is unfair or caused by political events. However, it does not cover tender or bid bonds for contracts which the UK Government is financing through its aid programme.
- Export Insurance Policy (EXIP): This is an insurance policy available to UK based exporters (with at least 20% of contract value being UK content) to protect them against non-payments. And with overseas based customers, the UK based exporter must have been refused cover for the contract by a private insurer. If the length of contract is less than 2 years your overseas customer must be based outside the EU and / or other specified high-income countries. Applications are free, premiums priced individually starting at £250.
- Bond Support Scheme: This is a partial guarantee scheme provided to a bank, so that it can issue a bond which needs to be provided by an exporter as part of a UK export contract. Banks pay a guarantee fee to UKEF which is a proportion of the interest margin received from the UK exporter. The scheme can only be accessed through participating banks.
- Letter of Credit Guarantee Scheme: This is a guarantee to a bank to enable UK based exporters to get their letters of credit confirmed by the bank. Goods must be exported from the UK or must be imported into the UK before being re-exported. In addition, the issuing bank must be based outside the EU and other specified high-income countries.There is no minimum or maximum contract value. Documentation demanded by the letter of credit must be presented within a year; the deferred payment period of the letter of credit must also be less than a year.
- Direct Lending Facility: The facility is to available all UK-based exporting companies, including SMEs for provision of loans of up to £3billion in aggregate to overseas buyers to enable them to purchase UK capital goods and/or services, from exporters carrying on business in the UK. The Direct Lending Facility has no upper or lower loan value limit. However, for loans below £5m, the government may be able to offer alternative export finance options.
- Buyer & Supplier Credit Financing Facility: A guarantee to a bank which enables it to make a loan to an overseas buyer to pay for a UK export of capital goods and services. The loan is typically repaid over a period of 5 years or longer. The UK exporter will receive payment via the credit facility as amounts fall due under the export contract.
6th Uganda-UK Convention
Date: Saturday, 10 September 2016
Venue: Troxy, 490 Commercial Rd, E1 0HX London UK
Become a Member: http://www.ugandanconventionuk.org/membership/
FREE Business registration: http://www.ugandanconventionuk.org/business-directory/