World Bank gives sh240b for agriculture

Jun 28, 2010

THE World Bank has given Uganda a loan of $120m (about sh240b) to increase agricultural productivity and household incomes.

By Anne Mugisa
and Steven Candia


THE World Bank has given Uganda a loan of $120m (about sh240b) to increase agricultural productivity and household incomes.

The money is to supplement the $497.3m (about sh995b), which the Government has set aside for the purpose, the bank said in a statement yesterday.

Other development partners are expected to contribute another $41m. Of this amount, IFAD will give $14m (sh28b), the European Union, $20m (sh40b) and Danida, $7m (sh14b).

According to the statement, Uganda will also get a $7.2m (sh14.4b) grant from the Global Environment Facility (GEF) to address land degradation and climate risks.

Over 1.7 million Ugandans are expected to benefit from the agricultural project directly, and another 850,000 indirectly.
The climate project will be implemented through the National Agricultural Research organisation (NARO) and the National Agricultural Advisory Services (NAADS).

According to the bank, the first component of $138m will go into developing agricultural technologies, such as sustainable land management, and the strengthening of agricultural research.

The second component of $72m will be used to enhance partnerships between agricultural research, advisory services and other stakeholders. The third component of $318m will be used to improve delivery of demand-driven and market-oriented advisory services to farmers. The farmers will be helped to move from subsistence to commercial farming. NAADS will implement it.

The bank explained that this will be complemented by the fourth project component of $63m, which is expected to promote integration of small-holders in the value chain. It said the last component of $75m will be undertaken by both NARO and NAADS.

The bank’s country manager, Kundhavi Kadiresan, said the project was key to the “structural transformation of the economy through value addition, export growth, and employment”.

The statement said the project is expected to contribute to increased agricultural productivity in a sustainable and environmentally friendly manner.

The team leader of the project, Madhur Gautam, said Uganda was “increasingly seen as a potential breadbasket for East Africa” and the project was timely.

“If Ugandan farmers can increase the quantity of their produce and at the same time address quality issues, they can tap into the East African market and raise greater revenues.”

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