Promoting agricultural finance in Uganda

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The Ugandan agricultural sector is significantly underfinanced due to inadequately adapted credit products, high transaction costs and little business interest from banks. This prevents the investments that are necessary to raise the agricultural sector to a level that exploits the existing potential and leads to increases in productivity, higher incomes and employment figures, as well as increasing economic and ecological resilience. The aim of the project is to sustainably improve the financing of small and medium-sized agricultural enterprises (SMEs) as well as small family farms and young professionals under gender-sensitive aspects and to strengthen their economic resilience and the creation of income and employment. For this purpose, a credit line (approx. EUR 18.5 million) is being financed, which provides loans for agricultural SMEs and small family farms to selected financial institutions via the apex institution Uganda Development Bank (UDB) as the project sponsor. In addition, an implementation consultant is being financed (approx. EUR 1.5 million) to support the UDB and the financial intermediaries in implementing the project.