The effort to make agricultural financing more accessible to Ugandan farmers has received a significant boost following the signing of a €16 million (approx.shs 64 billion) partnership between PostBank Uganda and the Agence Française de Développement (AFD).
The agreement, formalized on Thursday at PostBank’s Nansana branch, includes a €15 million (shs60 billion) credit line aimed at supporting smallholder farmers, Savings and Credit Cooperative Organizations (SACCOs), and agricultural Small and Medium Enterprises (SMEs). An additional €1 million (UGX 4 billion) has been earmarked for technical assistance to ensure the sustainability and effectiveness of the initiative.
PostBank Managing Director, Julius Kakeeto, said the initiative aligns closely with Uganda’s national development objectives and the government’s 10-fold growth strategy.
“We are partnering to promote agriculture, especially around SMEs, smallholder farmers, value creation, and support to SACCOs. The whole idea is to create impact,” Kakeeto said.
“Agriculture is the ATM of Uganda’s economy. We needed additional support to increase the credit available in this space, complementing the schemes we already run.”
Kakeeto emphasized the significance of the financing:
“AFD is providing us with €15 million for lending, and an extra €1 million for technical assistance to ensure the program’s success.”
French Ambassador to Uganda, H.E. Virginie Leroy, who officiated the event, hailed the deal as timely and impactful.
“I’m happy to see the agreement finalized. It is going to produce real impact,” she said.
Ambassador Leroy highlighted three key transformation areas expected from the partnership including equal access to land, finance, and business opportunities for women and youth, increased household income and investment for small farmers and enhanced climate resilience for Uganda’s rural communities
She noted that Uganda’s natural beauty and resources are facing growing climate threats.
“Uganda has something special — its natural resources and greenery. But climate change is making this increasingly challenging. This technical assistance will help farmers adapt to climate risks like heavy rains and droughts.”
The Ambassador also celebrated Uganda’s improved position in global agricultural trade.
“Agriculture is your big vector of development. Beyond food security, it’s about export capacity. I’m proud to note Uganda is now a net exporter to Europe, largely due to coffee.”
AFD Country Director, Marc Trouyet, reiterated the importance of the partnership in reaching underserved communities.
“This partnership with PostBank is significant because we wanted a partner with the capacity to reach farmers, SACCOs, women, and youth entrepreneurs across Uganda — and we found that in PostBank.”
Trouyet emphasized France’s commitment to Uganda’s growth.
“We want to be a long-term partner in Uganda’s development. Supporting smaller farmers, women entrepreneurs, and youth is critical — they are the true strength of this country.”
With agriculture employing over 70% of Uganda’s population and serving as the primary source of livelihood for rural communities, this financing facility is expected to play a critical role in improving financial inclusion, increasing productivity, and building resilience within the sector.
The partnership reflects growing international interest in supporting Uganda’s agricultural transformation — with a focus on inclusivity, sustainability, and export competitiveness.
