Ugandan farmers get extended loan scheme
Farmers in Uganda are to get improved access to finance following the extension of an agricultural loan scheme introduced during the last financial year.Farmers in Uganda are to get improved access to finance following the extension of an agricultural loan scheme introduced during the last financial year. The initiative has received a further 30 billion Uganda shillings (€9.9 million) in funding, taking its total worth to UShs90 billion, East African Business Week reports.
Commenting on the move, Managing Director of Standard Chartered Bank and Chairman of the Uganda Bankers' Association (UBA) Lamin Maniang said the agreement between the government and the UBA "will … help farmers [with] value addition". However, he noted the interest rate, which previously stood at ten per cent, is likely to be slightly higher.
Demand for the service has so far been weak and Mr Maniang added Standard Chartered is introducing finance services for the entire agriculture value chain in a bid to assist farmers. "If farmers come up with the right product they will be able to get financing from the bank," he was quoted as saying.
Standard Chartered presently has ten branches in Uganda, including its head office in Kampala.