aBi Finance injects Shs 120bln in green agribusiness
MBARARA -aBi Finance Limited in partnership with local commercial banks, Microfinance Deposit-taking Institutions [MDIs], and SACCOs has so far sunk Shs 120 billion in the agribusiness sector in form of cheap credit.
aBi Finance Limited launched the Green Agribusiness Taxonomy and aBi Green Finance Fund in December 2022 to deal with the climate change effects that threaten agribusiness.
While training bankers and SACCO leaders in Mbarara, Noah Owomugisha, head of Investments-Green Growth and Business Development Services at aBi said the organisation has always partnered with financial institutions in the country to support green agribusiness value chain.
“As aBi, and Uganda Institute of Banking and Financial Services [UIBFS], the financial institutions are our clients and that is why we focus on them. They also help because they operate in the grassroots and have that capacity to do mobilisation of the farmers,” he noted.
Owomugisha said when financial institutions put in place green policies, green loan products, and up-to-date banking systems, they are able to serve smallholder farmers and other value chain actors in green agribusiness.
He said providing comprehensive training and support to the financial institutions in the country helps the lenders to be well-equipped to offer environmentally sustainable financing solutions.
He encouraged farmers to embrace green finance, agribusiness practices, and technologies that foster social inclusion as well as protect the environment.
Henry Segawa, associate trainer at UIBFS also said they partnered with aBi Finance to offer trainings aimed at promoting the aspect of green financing in the country.
“It is not that we are introducing a new product on market. We are just complimenting whatever financial institutions have been offering,” he said, adding that, they would keep pushing for knowledge and actual liquidity to benefit farmers investing in green agribusiness.
He advised SACCO leaders to always sensitise their members before giving them loans to avoid default risks. “It should not just be acknowledging their loans, let’s know the kind of investments our clients do. If he is a maize farmer, advise him on pest-resistant seeds, if he is in livestock, advise him on tick-resistant breeds or let him make silage for the animals to feed on during drought,” Segawa said.
Anna Tumwesigye, business development manager Rushere SACCO said green financing will enable the SACCOs to recover their monies from loan defaulters.
“We are partnering with aBi Finance Limited to help people know the dangers of climate change. Once members understand the dangers, they will switch to shoot agroecology,” added Tumwesigye.
https://thecooperator.news/abi-finance-limited-readies-loans-for-tier-iv-mfis-and-saccos/
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