Sugarcane farmers encouraged to tap into agricultural loans

JINJA - Sugarcane farmers in the Busoga sub-region have been urged to take advantage of various government interventions aimed at boosting their operations and increasing their profits.

Michael Kibwika, the Jinja resident district commissioner, pointed out that many farmers with large pieces of land have been unable to maximize their potential due to insufficient funding, largely because they are unaware of available financial opportunities.

He highlighted the Agricultural Credit Facility (ACF) under the Uganda Development Bank (UDB), which was established by the government to provide medium and long-term financing for agricultural and agro-processing projects.

“There are many interventions by the government to help farmers access capital, but many of you may not be aware of such opportunities,” Kibwika said, offering to guide the sugarcane farmers in accessing the soft loans.

Kibwika made these comments shortly after the newly elected chairman of the Busoga Sugarcane Growers Association (BSGA), David Christopher Mombwe, took his oath to begin his three-year term.

The ceremony, held at Kakira Secondary School playgrounds on February 21, 2025,  was officiated by Kakira Grade One Magistrate Evelyn Kyomugisha. During the event, 48 delegates, two from each of the 24 sugarcane-growing sub-counties in Busoga, were also sworn in.

Deputy presidential press secretary Faruk Kirunda, who was the chief guest, expressed concern over the underutilisation of funding opportunities available to the people of Busoga. Kirunda revealed that the Generating Growth Opportunities and Productivity for Women Entrepreneurs (GROW) project allocated sh11.3 billion to Busoga last year, but only sh2 billion was used.

Margret Musembya, a sugarcane farmer from Buwaaya sub-county in Mayuge district, explained that the stringent conditions for accessing the funds had hindered many farmers.

She pointed out that many women lacked land titles, a requirement to access the loans, and that land in Busoga is largely owned by men. As a result, many women in the sugarcane business have been forced to operate in secret, behind their husbands' backs.

The GROW project, which is a $217 million (about sh800 billion) World Bank-funded initiative, aims to build the capacity of women entrepreneurs through low-interest loans and grants.

David Christopher Mombwe being assisted by famers to take oath as their new leader at Kakira SSS in Jinja district on Friday. (Credit: Jackie Nambogga)

It was launched by President Yoweri Museveni on March 8, 2024, to commemorate International Women’s Day.

Despite the challenges, Kirunda commended the farmers for their mature leadership in holding regular elections. He also encouraged the new leadership to compile the farmers’ views on what should be included in the proposed Sugar Bill and promised to arrange a meeting between the Busoga sugarcane farmers and the president.

In his address, Mombwe revealed that BSGA now has over 12,000 members.

He highlighted that the Kakira Outgrowers Rural Development Fund (KORD) has played a significant role in improving the infrastructure in sugarcane-growing communities, including the construction of classrooms, health centres, roads, and spring wells, and the provision of school fees and materials to vulnerable children.

Mombwe also pledged to continue advocating for a fair price for sugarcane, emphasizing that the crop provides a livelihood for over 80% of households in Busoga.

He further urged members to access agricultural loans, which he believes are more suitable for farmers compared to commercial loans.

In the January 18, 2025, election, Mombwe, who previously served as BSGA's secretary-general, won the chairmanship with 1,522 votes, defeating Michael Bamulode, the outgoing vice chairman, who received 328 votes. Mombwe replaced Hajji Abubaker Ojwang Omboko, who passed away early last year before the end of his term.

David Wakudumira, the head of the BSGA electoral commission, advised the new leadership to promote unity and reconciliation within the association.

He also suggested reviewing the association’s constitution to extend the leadership tenure from three to at least four years, allowing the leadership more time to address key issues related to sugar laws and serve the farmers effectively.