Parliament asked to approve sh352b loan to transform livestock sector

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The government has asked Parliament to approve borrowing up to $99.56m (sh352b) from the International Fund for Agricultural Development (IFAD) to finance the proposed Resilient Livestock Value Chain Project (RELIV).

State minister for finance Henry Musasizi tabled the request before Parliament on Wednesday, September 3, 2025. He explained that the project is designed to strengthen dairy and beef value chains, generate resilient livestock breeds, and improve production, storage, processing and marketing systems. RELIV aligns with the Parish Development Model and the National Development Plan.

Supporting farmers in the cattle corridor

The project will target 51 districts within Uganda’s cattle corridor. Its main objective is to improve the income, nutrition and resilience of smallholder livestock farmers, while reducing poverty and vulnerability to climate shocks.

Musasizi noted that RELIV will invest in breeding, multiplication and certification of improved livestock, animal disease control, agricultural mechanisation and irrigation, farmer education and mobilisation, research and partnerships with large landowners.

The minister recalled that President Yoweri Museveni, through a directive in May 2022, instructed the Ministry of Finance to mobilise resources for livestock development. Cabinet has since approved the Agricultural Value Chain Development Strategy, which identifies key interventions to unlock bottlenecks across Uganda’s agricultural systems.

Agriculture’s central role

Agriculture remains the backbone of Uganda’s economy, employing 70% of the population and contributing 24.7% to GDP in FY2023/24. In absolute terms, its contribution rose from sh35.36 trillion in FY2020/21 to sh50.01 trillion in FY2023/24.

Livestock accounts for 21% of agricultural value added and 4.3% of national GDP, with a cattle population of 14.5 million. Uganda produced 5 billion litres of milk and 225,000 metric tonnes of beef in 2023, exporting mainly dairy products worth $264.5m.

However, per capita consumption of beef (6kg) and milk (36 litres) remains low compared with regional averages. With Uganda’s population growing rapidly, the Food and Agriculture Organisation projects that demand for beef and milk will rise by 320% and 200% respectively by 2050.

Challenges facing the sector

Despite its potential, the livestock sector faces multiple challenges. These include recurrent outbreaks of foot and mouth disease, contagious bovine pleuropneumonia and lumpy skin disease. Inappropriate use of antibiotics is raising risks of antimicrobial resistance, while overgrazing and land degradation persist in the cattle corridor.

Other challenges include climate change and prolonged droughts leading to water and fodder shortages, weak cold-chain systems and reliance on informal milk markets, which affect quality and food safety. Farmers’ organisations also remain underdeveloped, limiting access to finance, markets and essential services.

Musasizi emphasised that IFAD’s financing will help address these challenges by building on the agency’s experience in supporting smallholder farmers and cooperatives across Africa. “This project will enhance livestock production, improve resilience, and strengthen market access to drive agricultural commercialisation and social-economic transformation,” he said.

Speaker of Parliament Anita Among, who chaired the House session, urged the Parliamentary committee on the national economy to scrutinise the loan urgently, noting that the deadline for signing the agreement with IFAD is September 12, 2025.

RELIV is expected to complement ongoing agricultural investments, foster agro-industrialisation, and boost Uganda’s competitiveness in regional and international livestock markets.