Farmers, agricultural traders and agricultural processors will have better access to credit under a new Equity Bank Uganda Ltd scheme, and can use it to buy much-needed agricultural inputs and machinery. The bank announced the launch of its Agribusiness Financing that will give agribusinesses and agro micro farmers access to affordable loans, linkages and training in Gulu District on August 7.
The Agribusiness Loan has been designed as a response to the high demand for credit in rural areas in the sectors of; production, processing, marketing and asset finance. The product provides loans from Shs30 Million to Shs10 Billion.
The AgriMicro credit facility is to finance agriculture enterprises at micro levels from a minimum of Shs100 , 000 to Shs30 Million is a response to the high demand for credit in rural areas. The product will benefit all the players in the value chain in the sectors of; production, processing, marketing and asset finance.
The products are specially tailored to enhance financial inclusion and improve the earnings of the agricultural value chains while making deliberate efforts to link them to other actors across the agricultural value chain from inputs to markets.
They are part of ongoing efforts by the Bank aimed at strengthening agricultural value-chain by providing innovative funding schemes and technical advisory services to by farmers, agricultural traders and agricultural processors across the country.
Enhancing access to suitable financial products and services to farmers – particularly agribusinesses – is key in promoting agricultural value chains and ensuring higher value agricultural products, Equity Bank said.
Equity Bank Marketing and Communications Manager Mr Phillip Otim said, “Agribusiness holds the key to sustainable economic development. We are committed to supporting agricultural value chains for greater inclusion of producers to improve their competitiveness and achieve the sector’s high potential for jobs and value creation.”
He pointed out that Equity Bank has identified the potential for growth, by adding medium size and large commercial farmers to the Agriculture portfolio as well as focusing on financing of the Agri-Food processing companies.
Agriculture is the most dominant economic sector in Uganda, providing 70% of the country’s employment opportunities, contributing more than half of all exports, and about one-quarter of gross domestic product (GDP). In addition, the sector continues to play a vital role in the rural economy.
