aBi Trust lends to farmers, others through SACCOs
Under the arrangement, the agency will extend financing directly to key participants in the agricultural value chain, including input dealers, farmers, traders and middlemen, transporters and exporters, with the aim of boosting trade in agricultural produce
KAMPALA, January 6, 2026 — In a bid to sustainably strengthen agribusiness through Savings and Credit Cooperative Organisations [SACCOs], aBi Trust has rolled out a dedicated agricultural financing initiative targeting farmers and all other actors across the agricultural value chain.
Under the arrangement, the agency will extend financing directly to key participants in the agricultural value chain, including input dealers, farmers, traders and middlemen, transporters and exporters, with the aim of boosting trade in agricultural produce.
Speaking at a recent meeting organised by the Uganda Cooperative Savings and Credit Union [UCSCU] in Kampala, Prince Otumanye of aBi Trust told cooperators that the Trust intends to work through well-established SACCOs to finance the entire agricultural chain, thereby strengthening individual farmers and other players in the sector.
“When lending to agriculture, it is not just about farmers, but about the entire value chain. Funding all the actors in that space creates collective impact and transforms the whole chain,” she said.
Otumanye revealed that aBi Trust aims to reach more than two million farmers nationwide through SACCOs, Tier II, III and IV financial institutions, as well as commercial banks. However, priority will be given to farmers’ SACCOs.
She explained that the initiative is designed to reinforce Uganda’s agribusiness sector, empower individual value chain actors and foster a collaborative, multi-sectoral ecosystem in which SACCOs are linked for mutual benefit.
To qualify for the facility, SACCOs must have been operational for at least three years, maintain a portfolio at risk of no more than 10 per cent, and hold a minimum equity of Shs500 million. Eligible SACCOs can access loans starting from Shs 300 million for onward lending to their members.
Farmers seeking to benefit from the financing must demonstrate clear plans for climate adaptation, green financing and other responses to climate change, biodiversity conservation and environmental sustainability.
Social inclusion is also a key focus of the programme, with women, youth and refugees identified as critical contributors to green financing, climate adaptation and efforts to mitigate the effects of climate change.
Otumanye cautioned that participating SACCOs must share a clear vision for agricultural development, prioritise support for members’ productivity, and uphold strong institutional governance, accountability, transparency and quality service delivery.
As part of the programme’s rollout, between July and December 2025, aBi Trust trained at least 25,000 credit officers from more than 120 financial institutions nationwide in risk management, aimed at strengthening SACCO capacity.
The Trust has also adopted financial technologies developed by various fintech companies aligned with the SACCO sector, alongside multiple agricultural information systems.
According to data from the Ministry of Trade, Industry and Cooperatives [MTIC], Uganda has over 46,000 SACCOs actively involved in agricultural cooperation with value chain players, the majority of which operate in production and marketing.
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