Overview:

DTB Uganda has committed specialized agricultural financing to help more than 60,000 smallholder tea farmers modernize production and transition to high-value processing to boost export earnings.

FORT PORTAL, Uganda — Diamond Trust Bank has partnered with the Uganda Tea Association to bolster the global competitiveness of the nation’s tea sector through strategic capital and value addition.

The collaboration was announced Friday during a three-day retreat for growers, producers and exporters. The event focused on positioning Uganda, Africa’s second-largest tea producer, as a more dominant force in international markets.

The tea industry produces more than 80,000 metric tons annually and generates approximately $80 million in export earnings. It also supports more than 60,000 smallholder farmers across the country.

Kyambadde Kaziro, head of corporate institute and business banking at DTB Uganda, said the bank is acting as a strategic enabler for the sector’s commercial journey.

He said the journey to global competitiveness requires strategic capital. He noted that the bank is committed to providing financial tools such as asset financing for modern irrigation and machinery, alongside trade finance solutions like invoice discounting to help stakeholders innovate.

Kaziro urged growers, buyers and processors to engage with financial institutions to access tailored agricultural and business loans. These facilities are designed to support equipment purchases, storage facility construction and seasonal operating expenses.

The partnership comes as the industry works to navigate price fluctuations and increase value addition. The Uganda Tea Association, which represents both large-scale plantations and smallholders, identified specialized agricultural financing as a critical need for the sector.

Onesimus Matsiko, chairperson of the Uganda Tea Outgrowers Association, said the industry remains the backbone of many rural economies. He noted that farmers often face hurdles in accessing the credit required for modernization.

Matsiko said partnerships with institutions like DTB are essential to ensure smallholders can transition from raw production to high-value processing, which he believes will secure the future of the industry for generations.