HOIMA – Farmers in Bunyoro Sub-region have been urged to take advantage of the Agriculture Credit Facility [ ACF ] initiated by government to boost commercial farming in the country.
Joseph Mutaka, the officer in charge of agriculture at the Bank of Uganda [BoU] said recently that there is still a low uptake of ACF by the farmers from Bunyoro Sub-region.
He noted that only a few companies from Bunyoro Sub-region such as Hoima Sugar Limited have utilised ACF, adding that just over Shs 30 billion has been disbursed to the sub-region.
The BoU official said that ACF benefits organised farmer groups, individual farmers, and companies to procure machinery such as tractors, irrigation equipment, and construct storage facilities, among others.
He noted that the government is partnering with commercial banks to implement the initiative, adding that the loan is given at 12 percent interest and a repayment period of 3 to 8 years.
He made the remarks while addressing the business community and farmers during a Town Hall Meeting organised by BoU in Hoima City to sensitise the public about the bank’s mandate and opportunities it offers to the public.
He said that some farmers in the region have not utilized this fund hence continuing to get loans of high interest from commercial banks.
He added that BoU is also supervising the implementation of Small Business Recovery Fund but that only a few people from Bunyoro have applied for the fund initiated by government to help businessmen who were affected by the COVID-19 lockdown.
He noted the loans given under the fund attracts 10 percent interest but people have continued to apply for normal loans from commercial banks.
The Hoima city resident commissioner, Badru Mugabi while addressing the business community and farmers said several farmers in the country are ignorant of the existence ACF at BoU.
He urged BoU to hold more sensitisation drives across the country, saying it will help citizens to know more about such government initiatives like ACF and Small Business Recovery Fund.
However, Mugabi said he had received complaints of some commercial banks giving farmers normal loans instead of the cheap ACF loans, urging BoU to look into the matter.
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