As a key pillar of the Ugandan economy, the agriculture sector is a critical driver of economic growth and poverty alleviation. Uganda’s agricultural sector (Let alone Teso region) is dominated by smallholder farmers with low levels of productivity. The agriculture sector is highly exposed to co-variant risks, which include weather, biological, infrastructure (post-harvest loss), price, and market risks. This plethora of risks suppresses appetite for investment in the sector. Despite the sector’s contribution to the economy, farmers’ access to agricultural credit remains a major constraint. Recognizing agriculture finance’s critical role in the agricultural transformation agenda will be very much vital to unlocking small/large scale farmers potential.
Our fifth webinar discussion focused on agricultural financing in Uganda; opportunities that come with it and the challenges farmers and financial institutions are likely to face as presented by an agribusiness expert from centenary bank. The report below offers you a summary of that discussion.