Ugandan govt seeks to borrow over sh730b for irrigation systems

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The Government is seeking to borrow €168.9m (about sh737b) from the UK Export Finance and Citi Bank for the development of 427 solar-powered irrigation systems across the country.

Finance minister Henry Musasizi tabled the motion on the floor of Parliament on Wednesday (June 10) during a plenary session chaired by Speaker Jacob Marksons Oboth.

He said this is under the irrigation systems phase II project, which is aimed at enhancing rural incomes through increased production and productivity arising from irrigated agriculture for coffee growing.

Musasizi said the project is expected to directly benefit about 2,562 households, translating into about 11,785 direct beneficiaries.

Agriculture minister Frank Tumwebaze implored the House to approve the loan request, saying Uganda’s irrigation uptake remains below 2%, yet crop failure is becoming more predictable because of changing weather patterns.

“We stand at below 2% of our irrigation uptake. We didn’t mind in the past not putting so much investment in irrigation because God had given us two guaranteed, predictable weather seasons. But now crop failure is predictable; it is more predictable than crop yield,” he said.

Tumwebaze said the project is mainly intended to support smallholder farmers with 10 to 20 acres, who cannot borrow from Uganda Development Bank or access the Agricultural Credit Facility to invest in large irrigation systems.

“I appeal to you to make an exception. Prioritise and pass a law that is going to support smallholder farmers, because the 10 to 20 acres are for smallholder farmers, who are not able to borrow money from Uganda Development Bank or the Agricultural Credit Facility to invest in massive irrigation systems,” he noted.

Fredrick Angura, the Tororo South MP, was one of the backbenchers that backed the move, saying communities still want irrigation support despite implementation challenges under phase I of the project.

“I have been one of those overseeing the first phase, and I want to inform you that the challenges we encountered in the first phase have not stopped our people from being interested in getting their land irrigated,” Angura said. 

By the time of writing this story, the House was still debating the loan request.