Define the Agricultural Credit Facility.

The Agricultural Credit Facility is a partnership between the Government of Uganda, Bank of Uganda, Uganda Development Bank,  Commercial Banks, Micro Deposit-Taking Institutions, Credit Institutions and SACCOs regulated by Bank of Uganda, all referred to as Participating Financial Institutions, with the objective of the Agricultural Credit Facility is to promote the commercialisation of agriculture by providing short, medium, and long-term financing to projects engaged in agriculture, grain trade, agro-processing, modernisation, and mechanisation.

The fund supports farmers, processors, grain traders and all projects involved in the agricultural value chain.

The Agricultural Credit Facility operates under a risk-sharing model between the Government of Uganda and the Participating Financial Institutions, with the Bank of Uganda serving as the fund administrator. The Government of Uganda contributes 50% to projects booked by Commercial Banks and Uganda Development Bank, and 70% for projects booked by Credit institutions, Microfinance Deposit-Taking Institutions and SACCOs regulated by the Bank of Uganda.  For grain traders, the government’s contribution remains at 50%. The remaining balance of the total loan amount is provided by the corresponding Participating Financial Institution.

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• What are the terms and conditions under the Agriculture Credit Facility?

  i. Loan Amount The maximum loan amount to a single borrower is UGX 2.1 billion but this amount can be increased on a case-by-case basis for eligible projects that add significant value to the agricultural sector and the economy as a whole. ii. Loan ...

• Who is responsible for sensitizing the public about the loans available through the Agricultural Credit Facility and the Small Business Recovery Fund?

  The Bank of Uganda is responsible for sensitising the general public about the availability of the Agricultural Credit Facility and the Small Business Recovery Fund. They conduct public outreach through various channels, including in-person events, ...

• How does someone access the Agricultural Credit Facility and Small Business Recovery Fund?

  Eligible borrowers can access the loan only through the Participating Financial institutions, banks and SACCOs regulated by the Bank of Uganda. All potential borrowers must have an active account with Participating Financial Institutions, a valid ...

• Which projects are not eligible for financing under the Agricultural Credit Facility?

  The projects that cannot be financed under the Agriculture Credit Facility include: working capital for trading in agricultural commodities other than grain trade, planting trees, purchasing land, and refinancing existing loans.

• Does one require collateral to access a loan under Agricultural Credit Facility and Small Business Recovery Fund?

  Both the Agricultural Credit Facility and Small Business Recovery Fund have to be adequately secured. For grain traders, the grain stock can form part of the security, and for asset financing, the purchased asset can act as the security.