The Independent Uganda: You get the Truth we Pay the Price
KAMPALA, UGANDA | THE INDEPENDENT | Agriculture remains the cornerstone of Uganda’s economy, employing 64% of the population and contributing up to 50% of the country’s export earnings. Despite its importance, many smallholder farmers face significant challenges in accessing affordable credit. Traditional financial institutions typically require collateral that rural farmers often lack, limiting their ability to invest in and grow their agricultural ventures.
FINCA Uganda is stepping up to address this gap. Through innovative partnerships—most notably with the Agricultural Business Initiative (aBi) Finance—FINCA has enabled over 10,000 farmers to access credit without the traditional burden of collateral requirements. This approach has made a transformative impact on many rural communities.
One such example is Tadeo Kasumba, a client from FINCA’s Mityana branch. Eight years ago, he began his journey with a modest three-acre coffee farm. Today, with the support of FINCA’s agricultural loans, he has expanded his farm to over fifteen acres, increased his borrowing capacity to UGX 35 million, built a home, purchased a vehicle, and opened a wholesale shop in Mityana town. His coffee farm now employs more than eight people, reflecting the broader transformation taking place in Uganda’s rural landscape.
According to Morice Kizito, FINCA Uganda’s Manager for Agricultural Lending, the institution supports a diverse range of agricultural activities, including crop farming, livestock rearing, poultry—both layers and broilers—and aquaculture. Their lending model spans the entire agricultural value chain, from production and processing to marketing, with particular emphasis on the production stage where most smallholder farmers operate.
Since the launch of its agricultural finance portfolio in 2011, FINCA Uganda has disbursed over UGX 100 billion to more than 50,000 farmers. These funds have enabled farmers to expand their operations, diversify income sources, and significantly improve their quality of life.
In addition to providing financial support, FINCA Uganda is committed to advancing climate- smart agriculture. Through its collaboration with the Uganda Energy Credit Capitalization Company (UECCC), FINCA is helping farmers integrate renewable energy technologies into their operations. These include solar-powered irrigation systems, refrigeration units, and milling equipment, all of which are boosting productivity while reducing environmental impact.
Morice emphasizes that FINCA’s approach is not limited to lending money—it is about enabling the adoption of modern, sustainable agricultural practices. By equipping farmers with the right tools and technologies, FINCA is fostering long-term resilience in the agricultural sector.
Understanding the inherent risks in agricultural lending, including unpredictable weather patterns, crop failures, and volatile market prices, FINCA has implemented risk mitigation strategies as part of its lending model. These include flexible loan structures tailored to seasonal cash flows, assessments that account for other household income, and the promotion of mixed farming as a way to stabilize earnings.
Looking ahead, FINCA Uganda is exploring the introduction of agricultural insurance products and regenerative agriculture techniques, such as the use of drought-resistant seedlings. The institution also plans to expand its climate-smart initiatives and deploy farmer agents to extend the reach of financial services to more remote communities.
Morice articulates FINCA’s vision clearly: the goal is not just to help farmers survive, but to empower them to thrive. He believes that when farmers succeed, entire communities experience transformation.
As Uganda’s agriculture sector continues to play a vital role in national development, FINCA Uganda’s efforts are proving essential. By eliminating barriers to credit, championing sustainability, and investing in farmer resilience, FINCA is playing a pivotal role in strengthening Uganda’s rural economy and promoting inclusive growth.
