Summary:
- Finance Minister Matia Kasaija, Agriculture Minister Frank Tumwebaze, and representatives of the financial institutions signed an agreement to formalize the scheme.
KAMPALA: The Minister of Finance, Matia Kasaija, on Wednesday launched a new Financing Scheme for Private Large-Scale Commercial Farmers.
The initiative aims to provide timely, affordable, and accessible financial resources to farmers who are pivotal to Uganda’s agricultural economy. The financing Scheme was launched at Speke Resort Munyonyo in Kampala.
The scheme establishes a financing mechanism to support large-scale farmers in producing 132,600 metric tons (MT) of maize, beans, soybeans, sorghum, and animal feeds across 114,661 acres of land.
To achieve this, government-owned financial institutions Pride Microfinance, Post Bank, and Housing Finance will provide a principal amount of UGX 176 billion.
The Government of Uganda will cover the annual interest component of UGX 40 billion.
The scheme, which features a flexible loan repayment plan, will run initially for six years. Eligible beneficiaries include companies, cooperatives, and other qualifying entities engaged in large-scale farming with a minimum of 50 acres of land.
At the launch, Finance Minister Matia Kasaija, Agriculture Minister Frank Tumwebaze, and representatives of the financial institutions signed an agreement to formalize the scheme.
Minister Tumwebaze emphasized that the funds are strictly for production, not trading.
He added that his ministry will share a list of profiled large-scale farmers with the Ministry of Finance and financial institutions in all districts.
Secretary to the Treasury, Ramathan Ggoobi, highlighted the initiative as a pivotal step in empowering farmers, enhancing food and feed security, and driving sustainable agricultural growth.
Ggoobi noted that the scheme aligns with the government’s Tenfold Growth Strategy, which aims to grow Uganda’s GDP from approximately USD 50 billion in FY2022/23 to USD 500 billion by 2040.
Agro-industrialization, a cornerstone of this strategy, seeks to commercialize and formalize farming, targeting a fivefold increase in agro-industrial exports to an estimated value of USD 20 billion.
