Cumulative Agricultural Credit Facility disbursement hits sh1.23trillion — BoU

As of the end of June 2025, the ACF had cumulatively disbursed sh1.23tn, benefiting 7,666 people across the country.

Richard Byarugaba, Executive Director for Finance at Bank of Uganda. (Courtesy)
By Simon Okitela
Journalists @New Vision
#Agricultural Credit Facility (ACF) #BoU

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The Bank of Uganda (BoU) has confirmed that so far, financial institutions have cumulatively disbursed a total of  sh1.23tn under the Agricultural Credit Facility (ACF) since its inception in 2009.

According to Richard Byarugaba, the Executive Director for Finance at BoU, as of the end of June 2025, the ACF had cumulatively disbursed sh1.23tn, benefiting 7,666 people across the country. He was speaking last week during the Breaking Barriers to Trade 2025 conference, held at the Sheraton Kampala Hotel.

“The interest rate on loans extended under the scheme is capped at 12% per annum. These funds have supported the acquisition of agricultural machinery and equipment for mechanisation, post-harvest handling, and irrigation to promote climate-smart agriculture, as well as access to inputs, improved breeds for increased yields, and agro-processing activities,” Byarugaba noted.

He explained that the facility maintains strong financial health, with a non-performing loan (NPL) rate of just 0.5% of the total government contribution disbursed as at 30 June 2025.

“This rate is significantly lower than the average NPL for the agriculture sector, which stands at 3.9%, indicating strong performance. ACF provides financing to entities involved in agro-processing and grain trade to expand market access.”

Commenting on barriers affecting women in business, Byarugaba highlighted that trade between nations fosters specialisation, which allows for efficient resource allocation and provides access to a wider variety of consumer goods and services.

“The world is better off when countries import products that are produced more efficiently and cheaply by others. Trade is a powerful engine for economic development and a force for positive change,” he said.

He also reaffirmed the central bank’s commitment to continue facilitating international trade through ensuring exchange rate and financial sector stability, which are important for competitiveness and for attracting private capital inflows for investment.

Byarugaba challenged policymakers and development partners to work towards addressing the challenges adversely affecting healthy competition. to trade, as

“At the international level, the hindrances to trade include, among others: rising geopolitical and trade tensions, as witnessed between the US and its trading partners; complex customs regulations; limited human resource capacity; high input costs; limited access to affordable financing; and competition from substandard goods. In addition, structural impediments, such as inadequate transport and communications infrastructure, can act as barriers to trade flows.”