Uganda’s agricultural sector, which supports over two-thirds of the population, has seen significant growth thanks to Equity Bank’s innovative lending approach. By providing accessible financing options, the bank has transformed small-holder farmers into vibrant agri-business owners, contributing to food security and job creation.
“We started by focusing on smallholder farmers with loans as low as UGX 100,000. While this might seem modest, these funds have significantly impacted the farmers’ operations,” said Francis Nsansa, Manager Agri-business at Equity Bank Uganda. “Currently, our total lending to this sector exceeds UGX 20 billion.”
Through various products, Equity Bank has enhanced farmers’ access to markets, funded agro-processing, and improved rural households’ incomes, leading to reduced poverty and positive social indicators. To date, the bank has disbursed UGX 130 billion in loans to 71,423 small and medium-sized farmers, facilitating food production, processing, transportation, and market access.
“Through our agribusiness financing, we’ve supported climate-smart practices, such as irrigation systems, which are essential for managing irregular rainfall. Many farmers have successfully implemented these systems on their farms,” Nsansa continued.
Farmers are not just given money but are also trained to manage their enterprises better through financial literacy and the application of modern farming practices. “Over 10,000 farmers have been trained in financial literacy and enterprise development while hundreds of Village Savings and Loan Associations (VSLAs) have been banked,” Nsansa added.
To address challenges faced by smallholder farmers, Equity Bank has implemented measures such as bancassurance coverage for associated risks and supports reforestation programs. These efforts earned the bank the national Agri-Financer of the Year award, recognizing its significant contribution to Uganda’s agricultural sector.
