By Our Reporter
KAMPALA: The Bank of Uganda offers Agricultural Credit Facility (ACF) loans to support aggressive farmers in the country.
These loans are available for eligible individuals, partnerships, or companies within the agricultural value chain.
Farmers can access ACF loans up to a maximum of 2 billion Ugandan shillings, with the potential for higher amounts, such as 10 billion shillings, for those engaged in significant agricultural activities contributing to the economy.
The ACF was established by the government in 2009 to promote the commercialization of agriculture in Uganda. It operates as a public-private partnership between the government and participating institutions, including commercial banks, microfinance institutions, and credit institutions.
Projects eligible for ACF loans encompass various aspects of agriculture, such as acquiring agricultural machinery, post-harvest handling equipment, storage facilities, agro-processing equipment, and other machinery related to agriculture and agro-processing. Borrowers typically repay these loans, along with interest and principal, within a specified period.
Additionally, the Bank of Uganda provides financial support to small businesses that faced financial distress due to the effects of COVID-19. Businesses employing between 2 and 49 people with an annual turnover ranging from 10 million to 300 million Ugandan shillings may access this support through the Small Business Recovery Fund.