Small businesses had to prove negative impact by the pandemic, provide licence to operate and tax clearance certificate
Small and medium-sized enterprises are unable to access economic relief funds, which was set up by the government to cushion businesses hard hit by Covid-19.
This is partly blamed on stringent conditions put in place for business to access the funds.
Even as the economy gradually recovers following the reopening of more activities, some SMEs will remain closed.
Most small businesses that could not meet conditions set to access the funds were left out, making it harder to reopen after restrictive guidelines were eased.
For instance, John Mugabo, owner of Makario Safaris, a tour and travel company, applied for the loan but unsuccessfully.
“I heard it was for small businesses that were hit hard by the pandemic, especially in the hospitality sector, but when I applied, it did not go through. I know many other businesses that struggled to access it, many saying the conditions were tough,” Mr Mugabo recounted.
To access the recovery fund, small businesses had to prove negative impact by the pandemic, licence to operate, tax clearance certificate and those whose loans were classified as performing as of June 2020.
Now that the economy starts reopening with accelerated vaccination campaigns, Mr Mugabo noted that the conditions be reviewed to let more businesses get funds to recover, and contribute to the economic recovery.
This week, owners of bars which were recently given a green light to operate also expressed frustration over the stringent conditions which they have to fulfill before they can reopen.
Among the requirements is mandatory Covid-testing every 14 days as well as writing a formal application requesting to reopen.
For instance, at +250 Bar in Kicukiro, it was still closed after a week since the bar reopening announcement.
They applied for RDB’s licence and were told to wait. This adds to additional costs that came with the reopening.
All the 25 employees working at +250 Bar will run a mandatory Covid-19 test twice a month. The management could not provide for the cost.
This will be now recovered from their monthly pay. “It is expensive, even more when you count hand washing facilities and other operating costs. Since the economy is reopening, we hope to get more clients and minimise the loss,” Eugene Mugisha, owner of the +250 Bar said.