Government collaborates with Equity bank to combat poverty in Busoga

The government, in collaboration with Equity bank, recently inaugurated the National Oil Palm Project, an agricultural initiative designed to enhance the livelihoods of farmers in the Busoga sub-region.

Launched at the Mayuge District headquarters, the project aims to provide affordable credit and training to smallholder farmers engaged in palm oil cultivation. During the launch event, the state minister for Agriculture, Fred Bwino Kyakulaga, emphasized the project’s potential to eradicate persistent poverty in Busoga by offering farmers a sustainable, long-term income source.

“This initiative will significantly transform the lives of the people in Busoga, lifting them out of the chronic poverty that has plagued the region for so long,” Kyakulaga stated.

Under this initiative, the government of Uganda has appointed Equity bank as the official fund manager, responsible for the disbursement and monitoring of project funds. The bank will also provide financial literacy, agribusiness training, and investment guidance to ensure the effective utilization of funds by farmers.

Catherine Psomgen, Equity bank’s director for Public Sector and Social Investment, highlighted the initiative’s focus on removing barriers that have historically hindered smallholder farmers.

“Through agriculture, we are addressing critical issues such as access to inputs, finance and markets,” Psomgen explained.

“By supporting these areas, we foster socio-economic transformation not only for individual households but for the economy as a whole.”

She further noted that Equity bank is offering loans to farmers at an interest rate of 10 per cent, significantly lower than the market average of 21 per cent. Each farmer or group of farmers is required to have five hectares of land, with each receiving Shs 25 million.

Those with half the required land will receive proportionate support. To date, 896 farmers have benefited from the facility, receiving a total of Shs 1.2 billion. The initial phase encompasses Buvuma, Mayuge, Bugiri, and Namayimba, while the second phase is set to expand to Kamuli, Iganga, Jinja City, Bugweri, Namatumba, Luuka and Kaliro next year. To ensure accountability, Psomgen clarified that not all funds are disbursed directly to farmers; a significant portion is allocated to suppliers.

“The ministry has designated suppliers who are directly paid to deliver pesticides and fertilizers,” she stated.

Furthermore, farmers receive training in effective planting techniques, including the preparation of planting holes and the care of seedlings, which reach maturity after 18 months.

The minister emphasized that given Uganda’s substantial domestic demand for palm oil, soap and cosmetics, the project is poised to generate thousands of jobs and sustainable income streams.

“Upon harvest, each farmer is projected to earn approximately Shs 2.5 million per month for 25 to 30 years,” he noted. “This project is a solution to the poverty and unemployment challenges in Busoga.”