MASINDI, September 11, 2025 — In a bid to help Masindi’s sugarcane farmers maximise their potential, Centenary Bank, in partnership with the Masindi Sugarcane Out Growers Association Limited [MASGAL], has launched a financial literacy programme for farmers who save with one of Uganda’s strong farmer-focused institutions.
The one-week training, which began on Monday, is taking place at Kabango Church of Uganda in Kabango Town Council and has kicked off with MASGAL’s Board Members and the Farmers Council. The sessions will be held across various sugarcane zones and are focusing on key areas such as planning and budgeting, saving, and loan management.
According to Robert Atugonza, Chairperson of MASGAL, while many people are engaged in sugarcane farming, only a few have managed to achieve significant transformation due to a lack of financial discipline.
“Many farmers are growing cane, but they are not seeing a change in their lives. That’s why we decided to partner with Centenary Bank to empower farmers with financial skills. I want to commend Centenary Bank for agreeing to partner with MASGAL to equip our farmers with the tools they need, and I am optimistic that things will improve for them,” said Atugonza on Monday.
Atugonza also encouraged sugarcane farmers in Masindi district to join the newly formed Savings and Credit Cooperative Organisation [SACCO]. He explained that an interim committee is currently working on the SACCO’s constitution and that, by the end of the week, they aim to have secured the certificate of registration from the Registrar of Cooperatives at the Ministry of Trade, Industry, and Cooperatives [MTIC].
Each share in the SACCO will cost Shs 20,000, with a membership fee of Shs 50,000. Farmers will be required to purchase a maximum of 40 shares.
Richard Komakech from Centenary Bank’s Agriculture Loan Department noted that the initiative is a joint scheme between MASGAL and Centenary Bank, with the goal of increasing farmers’ productivity.
“As a bank, we cannot work alone. We need to collaborate with partners like you, the sugarcane farmers, to ensure sustainability. Everyone has a role to play to reap the benefits. Our main responsibility is to provide financial skills and funds, while your role is to wisely manage the money, invest, and save,” said Komakech.
Paul Kato, also from Centenary Bank, added that the financial literacy training would be continuous, with sessions being held annually.
He highlighted that the Masindi branch alone has over 1,500 sugarcane farmers as customers. “I want to commend you for the trust you’ve placed in us. As sugarcane farmers, your performance is impressive compared to other farmers. Masindi’s sugarcane farmers are outstanding in terms of loan repayment,” he said.
Joseph Aganyira, Branch Manager at Centenary Bank Masindi, also praised the farmers for their good performance, noting that they currently have Shs 13 billion in loans from sugarcane farmers.
“Sugarcane farmers in Masindi are the best when it comes to loan repayment. The default rate is only 0.56%, which is very low,” Aganyira said.
He further added that, should the partnership continue, the bank would formalise it by signing a memorandum of understanding with MASGAL and explore the possibility of reducing the interest rate on loans.
Farmers also took the opportunity to ask questions regarding aspects of bank loans that they did not fully understand.
MASGAL boasts over 7,000 members who cultivate sugarcane on 32,000 hectares and supply Kinyara Sugar Limited with 70 percent of their cane.
Bunyoro Leads Uganda in Sugarcane Production
A recent study by the Economic Policy Research Centre [EPRC] reveals that Bunyoro has emerged as Uganda’s leading sugarcane-producing region. The subregion recorded an impressive average yield of 45 metric tonnes per acre, nearly double that of Busoga [24 metric tonnes] and significantly higher than Buganda [27 metric tonnes].
The study also highlighted that Bunyoro achieves these results at lower production costs, spending approximately Shs 17 billion on inputs, compared to UGX 92 billion in Busoga and Shs 37 billion in Buganda.
Uganda’s sugarcane sector has seen rapid growth over the past two decades, with national production rising from 1.5 million tonnes in 2000 to 5.8 million tonnes in 2020. This surge has been driven largely by the expansion of harvested land, which increased from 20,000 hectares in 2005 to 81,000 hectares in 2020.
The growth of the sector has been further supported by the proliferation of mills in the Bunyoro region, especially Kinyara Sugar Limited, which alone has approximately 7,300 registered outgrowers. Other major factories in the region include Kiryandongo Sugar Limited and Hoima Sugar Limited.
https://thecooperator.news/masindi-farmers-suffer-losses-amid-rising-sugarcane-thefts/
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