Henry Opolot, the Commissioner for Agricultural Extension and Skills Management at the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), while speaking to URN at the launch of the AGRA Project, said there is a need to improve communication and information sharing about the financial products available in the country aimed at supporting farmers.
Lack of information is hindering the utilisation of financial incentives for farmers.
Henry Opolot, the Commissioner for Agricultural Extension and Skills Management at the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), while speaking at the launch of the Alliance for a Green Revolution in Africa-AGRA Project, said there is a need to improve communication and information sharing about the financial products available in the country aimed at supporting farmers.
The project, worth USD 15.1 million, is being implemented by the Ministry of Finance and MAAIF with support from the Green Climate Fund. It aims to help farmers increase their income by improving post-harvest management in agriculture. The project also focuses on drying, storing, and transporting produce using modern technologies to prevent farmers' losses.
Opolot added that sometimes the products are poorly packaged, and the communication channels limit the proper flow of information, to the extent that even extension workers are unaware of some of these agricultural credit facilities.
Opolot singled out the Agricultural Credit Facility (ACF), noting a communication problem. Since it is a low-interest loan, some banks do not make an effort to publicise such incentives.
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Dennis Mugagga, from the Climate Finance Unit at the Ministry of Finance, Planning and Economic Development, said they have developed strategies such as the National Green Taxonomy to address climate change while also generating income.
Additionally, his ministry has developed guidelines for financial institutions lending to the private sector, emphasising that climate change should not be treated merely as a corporate social responsibility but as part of their core mandate.
He added that most of the non-performing loans have a direct link to climate change, making it necessary to invest in climate action.
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David Wazemba, the Country Director of AGRA, said the project will initially cover Eastern Uganda, including the Busoga, Bugisu, and Sebei regions, with plans to scale up coverage as the project progresses.
Wazemba explained that the project is starting in the eastern region because it is a trade corridor connected to Kenya and South Sudan, aimed at boosting trade relations and addressing the region’s agricultural challenges. Research by AGRA has shown that agricultural losses are particularly high in this region.
He added that the project aims to benefit 400,000 farmers directly.
Wazemba also stated that farmers will access these finances through commercial banks using existing banking structures. He further noted that AGRA is collaborating with insurance companies to enable farmers to obtain funds at subsidised rates.
Fred Kayongo Male
Freelancer