Uganda: Finance ministry takes over the management of agricultural finance
The aim is to fast-track the development of agricultural finance in Uganda.The Ugandan Ministry of Finance has officially taken over the administration and management of agricultural finance, the permanent secretary in the ministry, Keith Muhakanizi, has announced.
The aim is to fast-track the development of agricultural finance in Uganda. The ministry will design a work plan for 2017 that will lead to the development of an agricultural finance policy, institutional framework and strategy for the country.
To do so, it will receive the support of a new task force chaired by the National Planning Authority, which will include other ministries, the Bank of Uganda, the SNV Netherlands Development Organisation and the Uganda Agribusiness Alliance (UAA).
This announcement comes after Uganda’s president announced that the government will add 500 billion shillings (140 million euros) to the capital of the Uganda Development Bank (UDB) to lower interest rates in strategically important sectors such as agriculture.
He identified high borrowing costs as a major impediment to the transformation of agriculture and declared that lowering the cost of financing in this sector will be a high priority in coming years.
Meanwhile, the chief executive of the Agricultural Business Initiative (ABI), Andre Dellevoet, told the Observer that Uganda could become an agricultural powerhouse if farmers had better access to finance.