Students of Gulu Army Secondary School study plants and seedlings in Gulu University at the Northern Uganda Trade Show-Photo By Simon Wokoarch
By Simon Wokorach
Gulu: Banking institutions have urged farmers in northern Uganda to take advantage of cooperative societies in order to mechanise their production.
The Bank of Uganda Agricultural Credit Facility Officer Prosy Namala noted that whilst northern Uganda has plenty of land, the agricultural viability in the region needs to improve with new technologies.
Namala was recently addressing the innovators in Gulu University at the third edition of northern Uganda agricultural trade exhibition.
She noted that the Bank has since rolled out support to farmers under the agricultural credit facility to boost mechanised production and value addition.
Namala argues that if farmers come together through cooperatives, they will have a good purchasing power of farm inputs and new technologies that as individuals they may not be able to afford.
She adds that while farmers from other regions have embraced agricultural loan schemes, that has not been vibrant in northern Uganda which has a huge opportunity with the land available.
She explained that the Bank has relaxed conditions to access loans for farmers with the annual interest rate standing at 12% for borrowers.
“When the north has plenty, the Country won’t lack food and we want to unlock this opportunity to support these small-scale farmers and turn them to commercial farming,” Namala added.
The Regional Manager Uganda Development Bank Gulu Branch Sammuel Baker Ongom revealed that for the 9 months that the Bank has operated in Gulu, 125 billion has been issued to support farmers.
He said the loans were to activate the agricultural entrepreneurship in the region and support small scale businesses to grow from subsistence to money economy.
“We think it’s the time to build up the food system in northern Uganda and transform its population from rural economy to money economy,” Ongom added.
Grace Musimami, the Principal Secretary for National Agricultural Advisory Services has commended the Banks for stepping up support in the agricultural sector through access to loans for farming.
He noted that lack of support to farmers has slowed down potential growth on value addition where farmers have always been exploited as they sell their products cheaply to middlemen.
Tabu Ismail, a fourth year under graduate student of bachelor of Science in Agriculture who deals in fruit processing has urged the banks to relax conditions for loan acquisition to young innovators.
The Vice Chancellor of Gulu University Prof. George Openjuru Ladaa noted that the university is deeply rooted in promoting innovations, research and value addition through its training modules.
He noted that while the university is committed to transforming the agricultural sector of the region, there is a need for supporting the young innovators through loans for their business incubation.
The state minister for northern Uganda Dr. Keneth Omona has asked banks and money lending institutions to invest in agriculture through provision of loans to rural farmers.
Dr. Omona noted that once the youths are supported with start-up capital in farming, the country will address unemployment because of a huge opportunity for self-employment in production.
“Agriculture gives us 24% of our economic growth per annum and we want to take it further because we have seen other nations develop through unlocking their agricultural potentials,” Dr. Omona added.
He also revealed that the government is in its final stages of engaging Uganda Coffee Development Authority for supply of coffee seedlings in the region as part of turning the region into a cash crop economy.
“I have moved to a number of places where you find people planting coffee towards the end of the second season. It may have a lot of rain but followed by severe drought,” Dr. Omona added.
Recently, the Chief Coordinator for Operation Wealth Creation Gen. Caleb Akwandanaho, known as Salim Saleh, raised concern over wastage of coffee seedings supplied under the programme in the region.
