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Farmers Urged On Agricultural Loans

by Jacquiline Nakandi
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By Patrick Okino

Aggressive farmers in the country are eligible for an Agricultural Credit Facility (ACF) loan offered by the Bank of Uganda up to a maximum of shillings two billion. 

The bank says if one is involved in great trade, they can access up to sh 10 billion, depending on the contribution of their projects to the economy in terms of employment, foreign exchange, among others. 

Bank of Uganda deputy director in charge of the agricultural facility Alex Rwanja says the Agricultural Credit Facility was established by the government in 2009 with the sole objective of supporting the commercialisation of agriculture in the country.

He adds that the facility is a private-public partnership between the Government and private sector meaning commercial banks, microfinance institutions and credit institutions generally called the participating institutions.

Rwanja made the remarks during a presentation on access to affordable credit under the small business recovery fund during the local government budget regional consultative workshops for the financial year 2024/2024 at Margarita Palace Hotel in Lira city. It was organised by the finance ministry.

He added that the projects which are eligible for ACF loans include the acquisition of agricultural machinery, post-harvest handling equipment, storage facilities, agro-processing and any other machinery and equipment used for agriculture and agro-processing.

“So you borrow money under the great trade for two years and you pay with the interest and principal at the end of two years,” he said. 

“Maybe you want to know who these people are eligible for ACF. It is you and me as an individual, a partnership or a company provided you are within the agricultural value chain,” he added.

On the small business recovery funds that suffered financial distress arising from the effects of COVID-19, the Bank financed businesses employing between 2-49 people with an annual turnover of shillings 10 million-300 million.

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