Mbarara, Uganda | More than 170,000 farmers, farmer groups and agricultural enterprises across Uganda have benefited from a Sh64 billion financing programme aimed at expanding access to affordable credit and strengthening the country’s agricultural sector.
The initiative, a partnership between Pearl Bank Uganda and Agence Française de Développement (AFD), provides a €15 million (about Sh60 billion) concessional credit line, alongside €1 million (about Sh4 billion) in technical support to agricultural micro, small and medium enterprises (MSMEs), smallholder farmers and Savings and Credit Cooperative Organisations (SACCOs).
The impact of the partnership was highlighted during a visit by Pearl Bank officials and an AFD delegation led by Virginie Leroy to beneficiaries in Mbarara District this week.
The delegation visited Rwanyamahembe SACCO, one of the farmer organisations benefiting from the financing support, where members shared how improved access to credit has enabled them to expand their agricultural activities.
Speaking during the engagement, Pearl Bank’s Head of Financial Institutions and Social Enterprises, George Williams Walusansa, said agriculture remains a key pillar of Uganda’s economic transformation agenda.
“Agriculture continues to play a central role in the growth of our economy. It employs over 70% of the population directly and indirectly and is part of the ATMS (Agro-industrialisation, Tourism, Mineral Development, and Science, Technology & Innovation) priorities under the Tenfold Growth Strategy,” Walusansa said.
He said access to the right financing would help farmers increase production, create jobs and contribute to Uganda’s ambition of growing its economy from $50 billion to $500 billion by 2040.
“Through the success stories from Rwanyamahembe SACCO and other farmer groups, we are confident that appropriate financing can create a significant impact and complement government efforts towards economic transformation,” he said.
Among the beneficiaries are Rwanyamahembe SACCO, which has about 12,000 members, Kyamuhunga Peoples’ Co-Operative with approximately 13,000 beneficiaries, and Ebo Co-Operative Savings, which serves about 120,000 members.
Ambassador Leroy said the partnership demonstrates France’s commitment to supporting Uganda’s farmers, cooperatives and rural entrepreneurs who play a critical role in driving agricultural development.
“Through this initiative, France is investing in Uganda’s farmers, cooperatives and rural entrepreneurs, who are the backbone of the agricultural sector,” she said.
AFD Uganda Country Director Marc Trouyet said the programme shows how targeted financing can unlock opportunities across the agricultural value chain.
He noted that improved access to capital can support smallholder farmers, women and youth entrepreneurs while creating opportunities in agribusiness.
Walusansa said Pearl Bank remains committed to developing financial solutions that promote inclusion, entrepreneurship and sustainable growth.
“As a homegrown bank, Pearl Bank’s purpose is to foster prosperity for Uganda by driving sustainable financial inclusion and stimulating entrepreneurship and enterprise,” he said.
The partnership comes at a time when Uganda continues to prioritise agricultural commercialisation, value addition and increased participation of smallholder farmers in formal markets.
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