Bank of Uganda rolls out Shs283b fund, calls for uptake among farmers

The Bank of Uganda has unveiled a Shs283 billion financing package targeting farmers and small businesses in the Busoga sub-region, with officials urging eligible beneficiaries to take advantage of the low-interest credit to expand production and rebuild enterprises.

The funding, extended under the Small Business Recovery Fund (SBRF) and the Agricultural Credit Facility (ACF), is designed to support businesses still recovering from the effects of the Covid-19 pandemic while strengthening agricultural output.

Speaking at the Bugiri Agribusiness Expo at Busoga University, Mr Sidney Lugwajje from the central bank’s agriculture and business department said the initiative is tailored for small-scale enterprises and farmers across the region.

“SBRF was established to provide affordable loans to businesses and farmers affected by the Covid-19 lockdowns. We therefore call upon eligible beneficiaries to access these funds at an interest rate of 10 per cent per annum,” he said.

He noted that individuals, groups and companies employing between two and 49 workers, with an annual turnover of between Shs10 million and Shs300 million, qualify for the facility. Applications are processed through 22 participating financial institutions, including Absa Bank Uganda, DFCU Bank and Centenary Bank.

Although the programme is national, Mr Lugwajje said Busoga is expected to benefit significantly due to its strong agricultural base.

Local leaders have welcomed the intervention but cautioned that awareness gaps could limit access. Bugiri District Fisheries Officer Immaculate Weere said there is need for intensified sensitisation to guide farmers through the application process.

“We are grateful for this programme. If well implemented, it will significantly improve household incomes,” Ms Weere said.

She added that the Bugiri Agribusiness Expo, now in its seventh edition, has already helped link farmers to markets and promote commercial farming.

“We have created opportunities for farmers in horticulture, poultry and other enterprises. Access to affordable credit will further boost productivity and profitability,” she said, noting that the initiative supports the transition from subsistence to commercial agriculture.

However, farmers raised concerns that could undermine the programme’s impact. Mr Shafiq Mugoya, a tomato farmer from Budhaya Sub-county, cited pests and diseases as a persistent challenge.

“Farmers can improve their incomes, but these issues must be addressed,” he said.

Mr James Byantaka, a maize and beans trader from Nankoma Town Council, called for improved market access, noting that limited local demand forces traders to sell produce in neighbouring Kenya.

“If government secures stable markets, our businesses will grow,” he said.