Pearl Bank expands agricultural lending by 24% to drive economic growth strategy

KAMPALA, Uganda – Pearl Bank expanded its agricultural lending portfolio by 24% in 2025, deploying targeted credit across the sector to drive the government’s long-term economic growth strategy.

The expansion of the agribusiness loan book, compared with 24% growth in 2024, focused on boosting credit for farmers, cooperatives, processors, traders and agricultural small enterprises. The lending push comes as the state accelerates its Agriculture, Tourism, Minerals and Science and Technology initiative, an economic growth strategy known as the ATMS agenda.

While agriculture supports the livelihoods of more than 70% of Uganda’s population, a historic lack of affordable credit has limited necessary investments in mechanization, irrigation, processing and value addition.

Pearl Bank has targeted its expanded credit lines toward the entire agricultural value chain rather than primary production alone. Julius Akais, Pearl Bank’s supervisor for agriculture and partnerships, said the strategic funding directly addresses the sector’s capital deficiencies.

“The awards signify the contributions Pearl Bank has made to agricultural financing in Uganda and perfectly align with our purpose of fostering prosperity for Ugandans,” Akais said.

The 24% portfolio growth relied heavily on the bank’s rural infrastructure, which spans more than 11,500 agents across 1,935 subcounties and 6,150 parishes nationwide.

This deep network has enabled the institution to serve as a major channel for government-backed development funds. According to the 2026-27 national budget speech, the state’s Agricultural Credit Facility has cumulatively disbursed 1.35 trillion Ugandan shillings to over 14,000 beneficiaries, while the Small Business Fund has extended more than 82 billion shillings to 4,000 enterprises.

During the previous 2025-26 budget presentation, Henry Musasizi, minister of finance, planning and economic development, noted the government had invested 371.1 billion shillings into the Agricultural Credit Facility as co-financing with participating financial institutions. The state also provides 41 billion shillings annually to subsidize interest payments for commercial farmers cultivating more than 50 acres of grain and animal feed.

Equator Seeds Ltd., an agribusiness that secured financing through the bank’s expanded portfolio, used the capital to buy foundation seed, invest in irrigation systems and expand farmer training programs. Company officials noted the funding helped scale production and raise incomes for its network of contract farmers.

The bank’s targeted credit growth earned multiple industry honors this year. In April, the Bank of Uganda recognized Pearl Bank for its responsiveness in administering the Agricultural Credit Facility and Small Business Fund schemes, noting their alignment with the National Development Plan IV and the Tenfold Growth Strategy.

Earlier in the year, Aceli Africa named Pearl Bank Uganda’s Best Agri-SME Lender during an industry roundtable in Kampala.

The bank’s lending expansion aligns with the newly unveiled 2026-27 national budget, which reaffirms the state’s commitment to the full monetization of Uganda’s economy through commercial agriculture, industrialization and digital transformation.