Government has unveiled a Shs176 billion financing facility targeting large-scale grain farmers as Uganda moves to strengthen agro-industrial exports under the Tenfold Growth Strategy.
The facility, established in partnership with the Grain Council of Uganda, Pearl Bank, Pride Bank and Housing Finance Bank, will provide subsidized loans to farmers growing maize, beans, sorghum and animal fodder.
Speaking during a meeting with private sector stakeholders on off-take opportunities for grain commodities, Ramathan Ggoobi said the intervention is aimed at ensuring reliable supply of raw materials for Uganda’s growing manufacturing sector.
Dr Ggoobi said government targets increasing exports from 12 percent to 50 percent of GDP through agro-industrialisation and value addition.
He explained that Uganda also plans to increase the export value of agro-industrial products to US$20 billion while expanding the share of medium and high-tech manufactured exports.
According to Ggoobi, processing agricultural products into finished goods remains key to helping Uganda compete on the international market.
He added that government is also using programs such as the Parish Revolving Fund to expand production at household level.
So far, Shs3.78 trillion has been disbursed to 3.7 million beneficiaries, many of whom have invested in maize, cassava and livestock farming.
Government says the increased production of grain and other raw materials will support industries involved in animal feeds, food processing and export manufacturing.
