Kagadi: BoU and UCA strengthen farmers’ access to ACF and SBF
KAGADI District, August 30 — Farmers and cooperative leaders from Kyenjojo, Kagadi and Kikuube districts have been equipped with information on how to access the Government of Uganda’s Agricultural Credit Facility [ ACF ] and Small Business Fund [SBF], in an effort to expand access to affordable finance for agricultural production and small businesses in the Bunyoro sub-region.
The sensitisation workshop, held in Kagadi district recently, was organised by the Bank of Uganda [BoU] in partnership with the Uganda Cooperative Alliance [UCA], with representatives of commercial banks operating in the region also taking part.
The initiative forms part of broader efforts to ensure that farmers, cooperatives and small businesses are better positioned to benefit from government financing programmes aimed at stimulating production, enterprise development and inclusive economic growth.
Officials from the BoU explained that the ACF and SBF are government financing initiatives implemented through the institution, with farmers and small and medium-sized enterprises able to access the funds through participating commercial banks.
For UCA, the engagement goes beyond informing farmers about available financing. It reflects the Alliance’s growing strategic role in bridging the gap between government financing programmes and the cooperatives and communities expected to benefit from them.
UCA was invited by the BoU to mobilise and guide farmers and cooperatives on eligibility requirements, application procedures and the responsible utilisation of the facilities.
Representatives of commercial banks attending the workshop assured participants of technical support throughout the application process and encouraged farmers and cooperatives to engage with their nearest bank branches.
Participants were also guided on the importance of having the required documentation, including cooperative registration certificates, business plans and collateral, as stipulated under the respective ACF and SBF guidelines.
Representing UCA, Jalia Bintu, a Supervisory Board Member, said the intervention formed part of UCA’s broader commitment to ensuring that cooperatives across Uganda are able to access and effectively utilise government programmes.
“Our role is to make sure that farmers and cooperatives are not left behind. We shall continue with financial literacy, imparting leadership and governance skills, and group management training so that members can qualify and use these funds productively,” she said.
The approach marks a shift in UCA’s support to cooperatives from mobilisation alone towards comprehensive value-chain support aimed at strengthening the capacity of cooperatives to access, manage and productively utilise financial resources.
Access to finance, however, is only one aspect of building resilient and commercially viable cooperatives. Strong governance, financial literacy, proper record-keeping, sound business planning and effective group management are also critical to ensuring that borrowed resources translate into increased production, stronger enterprises and improved household incomes.
Through this integrated approach, UCA seeks to position cooperatives as effective vehicles for transforming available government financing into productive investment, employment and sustainable livelihoods.
Government commends UCA’s advocacy role
The Assistant Resident District Commissioner for Kagadi district, Edward Birungi, who officiated at the closing of the workshop, commended UCA for its continued advocacy and support for farmers.
“In a special way, I appreciate the work UCA is doing to lobby and advocate for farmers. As government, we really appreciate it,” he said.
He encouraged farmers to embrace the cooperative model, maintain proper records and work closely with financial institutions to improve their ability to benefit from available financing facilities.
Expanding Access to Finance in Bunyoro
The Kagadi engagement comes at a time when access to affordable credit remains a significant challenge for farmers and small businesses.
By bringing together farmers, cooperatives, government representatives, BoU and commercial banks, the sensitisation workshop provided a direct platform for addressing information and access barriers that can prevent potential beneficiaries from taking advantage of available financing.
The engagement is expected to contribute to increased uptake of the ACF and SBF across the Bunyoro Sub-region while strengthening the capacity of cooperatives and small businesses to make informed financing decisions.
For UCA, the partnership demonstrates the important role of the cooperative movement in connecting national economic programmes with communities at the grassroots.
As Uganda continues to pursue inclusive economic transformation, strong and well-governed cooperatives can provide an institutional platform through which farmers and small businesses organise, access finance, increase production, participate in markets and create sustainable livelihoods.
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