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[BUSINESS] · Uganda · 3 sources

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Part of situation: Ugandan entrepreneurship and agricultural credit initiatives (2 clusters)

Uganda expands agricultural and female entrepreneurship credit

agricultural finance Uganda economy women entrepreneurs commercial agriculture microfinance

Uganda is implementing various financial initiatives to transition households from subsistence to commercial economies. The Bank of Uganda is promoting affordable credit through the Agricultural Credit Facility, which has distributed approximately Shs1.35 trillion to over 11,000 beneficiaries. This facility offers interest rates capped at 12 per cent for most projects and 15 per cent for grain trade, with repayment periods reaching eight years.

In support of female entrepreneurs, the World Bank is financing the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project with US$217 million. This initiative provides loans between Shs2 million and Shs200 million at interest rates up to 10 per cent to help women expand businesses and acquire productive assets.

Financial institutions like dfcu Bank are increasingly utilizing digital transaction data to better assess the creditworthiness of agricultural enterprises. By leveraging technology to understand production cycles and cash flows, lenders can provide more informed financing, though experts note a continued need for long-term capital to fund infrastructure and machinery.

Entities

Bank of Uganda · Ministry of Finance, Planning and Economic Development · Uganda · World Bank · dfcu Bank

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] Loans under the Agricultural Credit Facility attract a maximum interest rate of 12 per cent per year for most projects and 15 per cent for grain trade. ubc.go.ug
  • [○ 1 SOURCE] The 2024 census indicates 33.1% of Ugandan households remain in the subsistence economy. mulengeranews.com
  • [○ 1 SOURCE] The Agricultural Credit Facility has provided approximately Shs1.35 trillion to over 11,000 beneficiaries. ubc.go.ug
  • [○ 1 SOURCE] The GROW Project is supported by US$217 million in World Bank financing. www.showbizuganda.com
  • [○ 1 SOURCE] Digital transaction records and data are helping lenders make more informed credit decisions for agricultural enterprises. mulengeranews.com
  • [○ 1 SOURCE] GROW loans range from Shs2 million to Shs200 million with interest rates up to 10 per cent per annum. www.showbizuganda.com

Sources

dfcu Bank & the role of technology & data in expanding agricultural Finance [mulengeranews.com]
Bank of Uganda pushes affordable credit for Commercial Agriculture - Uganda Broadcasting Corporation [ubc.go.ug]
World Bank lauded for Financial Empowerment of women under Grow Loan Scheme – Showbizuganda [www.showbizuganda.com]