Tayari News
Access to affordable credit for farmers will remain a key government priority over the next five years, with plans to strengthen collaboration between the Ministry of Agriculture and the Ministry of Finance to expand low-cost financing across the agricultural sector.
The commitment was reaffirmed by the Minister of Agriculture, Animal Industry and Fisheries, Frank Kagyigyi Tumwebaze, shortly after appearing before Parliament’s Appointments Committee on Monday following his reappointment to the Cabinet. “We shall continue working closely with the Ministry of Finance to ensure farmers access cheap credit,” Tumwebaze told journalists.
His remarks come as Parliament vets President Yoweri Museveni’s new Cabinet nominees under Article 113 of the Constitution and the Rules of Procedure governing the Appointments Committee. Affordable agricultural financing remains one of the biggest challenges facing Ugandan farmers, particularly smallholders who often rely on expensive informal lending arrangements or struggle to meet collateral requirements imposed by commercial banks.
The government has, over the years, introduced several interventions to address the challenge, including the Agricultural Credit Facility (ACF), which is administered by the Bank of Uganda in partnership with participating financial institutions. The facility offers loans at subsidised interest rates to support agricultural production, processing, and value addition.
Other interventions include the Parish Development Model (PDM), SACCOs, and Operation Wealth Creation programmes aimed at increasing access to agricultural inputs and financing. Tumwebaze’s renewed focus on affordable credit aligns with the government’s broader agro-industrialisation agenda and objectives under the National Development Plan, which seeks to increase agricultural productivity, create jobs, and raise household incomes.
Agriculture expert Augustine Mungudit says improved access to affordable financing could boost production, reduce post-harvest losses, and accelerate the transition from subsistence to commercial agriculture. However, he notes that previous interventions have faced challenges, including limited rural outreach, loan defaults, and inadequate monitoring, factors that have reduced their overall impact.
Some farmers’ organisations continue to advocate for the establishment of a dedicated Agricultural Bank and greater transparency in the allocation of subsidised credit facilities. Others argue that strengthening existing programmes through better coordination between government institutions and the use of digital financial solutions could deliver similar results more efficiently.
Tumwebaze’s retention at the Agriculture Ministry signals continuity in government policy as Uganda seeks to harness agriculture as a driver of economic transformation, food security, and export growth. The success of the strategy, however, will largely depend on effective implementation and the ability to ensure that affordable financing reaches smallholder farmers who constitute the majority of Uganda’s agricultural producers.
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