Stanbic Bank Uganda promotes lending to the agricultural sector
Stanbic Bank Uganda wants to rally other domestic commercial banks to boost lending to the country's farmers, it has emerged.According to the Daily Monitor, it has agreed to finance activities of at least 5,000 farmers in Kapchorwa district and another 38 farmer groups backed by the Export Trading Company in Uganda.
Beneficiaries will be able to plant and grow several crops with guaranteed buyers for the outputs.
Philip Odera, Managing Director of Stanbic Bank Uganda, told the news source that there is a great scope for financial institutions to get involved in supporting innovative structures in Uganda's agriculture sector.
He revealed that currently, the total lending from financial institutions to Uganda's agricultural sector is running at under Shs240 billion (€70.7 million), compared to over €212 million to the manufacturing, telecommunications and construction sectors.
This initiative follows a raise of Shs600 billion for agricultural loans by the government of Uganda, aimed at extending low interest loans to farmers, New Vision reported.