MSC hands over sh700m farming machinery to rural groups

In a move to enhance agricultural productivity and uplift rural livelihoods, the Microfinance Support Centre (MSC) on Friday handed over farming machinery worth Sh700m to four farmer groups from Kibuku, Nwoya, Katakwi, and Buyende districts.

The donation, part of MSC’s broader strategy to support Uganda’s agro-industrialization agenda, is aimed at boosting production, improving household incomes, creating jobs, and accelerating socio-economic transformation in rural communities.

The machinery includes tractors, planters, and other essential agricultural equipment tailored to mechanise farming processes for improved efficiency and output.

While officiating the handover in Kampala, the MSC Head of Business Development Gidson Ainaman noted that the intervention aligns with the government’s Vision 2040 and the National Development Plan (NDP), which emphasise the transition of subsistence farmers into the money economy.

He explained that access to modern machinery remains one of the biggest constraints facing smallholder farmers and farmer groups.

“We have already given out 22 tractors and eleven vehicles for transport. We are also fishing. By providing this machinery, we are removing a key bottleneck to increased agricultural production and productivity. These tools will significantly reduce labour costs, save time, and increase acreage under cultivation, which will ultimately lead to increased incomes for these farming households,” Ainaman said.

The beneficiary groups were selected through a rigorous assessment of their organisational structures, operational capacity, and commitment to agricultural commercialisation.

MSC officials emphasised that the equipment is subsidised and clients will pay 40% and 60% is a grant from the Islamic Development Bank, with the hope to improve on mechanisation.

They include youth and women-led cooperatives engaged in various value chains such as rice, maize, and sunflower farming.

MSC officials emphasised that the equipment is subsidised and clients will pay 40% and 60% is a grant from the Islamic Development Bank, with the hope to improve on mechanisation.

“As we grow industrialisation, we need to improve on agriculture. We want to cut off the middleman such that the farmer can take goods to the market,” Ainaman added.

MSC promised support as part of a long-term engagement that includes technical support, financial literacy training, and linkage to markets.

The recipients are expected to manage the equipment as shared assets and reinvest proceeds from improved productivity into further group development.

Leaders from the beneficiary groups hailed MSC for the intervention, describing it as a timely boost amid rising input costs and climate-related challenges. They pledged to use the machinery responsibly and work collectively to maximise output.

This latest intervention reaffirms MSC’s commitment to empowering rural communities through targeted financial and technical support. As more farmer groups gain access to mechanisation, the ripple effect is expected to contribute meaningfully to national goals of food security, import substitution, and inclusive economic growth.

The Guest of Honour, Maj. Retired Awich Pola, the Representative of the NRM Secretary General, said that the development is in line with the NRM manifesto.