BOU plots new bank plan for agriculture
Apr 01, 2005
BANK of Uganda (BOU) will work out ways through which commercial banks are encouraged to design products for the agriculture sector, David Opiokello, BOU’s executive director for finance, has said.
By Steven Odeu
BANK of Uganda (BOU) will work out ways through which commercial banks are encouraged to design products for the agriculture sector, David Opiokello, BOU’s executive director for finance, has said.
Opiokello said BOU had rejected calls to set up an agriculture financing institution to support farming.
He said Uganda Development Bank and former Uganda Commercial Bank were set up to support the agricultural sector, but ended up with huge non-performing loans.
“The most important thing is to have suitable products for the sector, not an institution,†Opiokello said on Wednesday in Kampala.
Provision of credit and saving facilities to farmers and agro-businesses is one of the major constraints to the development of agriculture in Uganda, yet no comprehensive financing strategy has been developed.
Agriculture employs over 80% of the population in the country.
“The interest rates are high, but we have to map out ways of assisting farmers,†he said.
To boost the sector, BOU, the German Technical Cooperation and Swedish International Development Agency under the Financial Systems Development (FSD) programme are organising a seminar at Speke Resort Munyonyo from April 6 to 7.
Peter Rhode, FSD’s director, said the workshop under the theme, ‘Action Plan for Agricultural Finance in Uganda,’ aims at boosting preparation by key stakeholders of a long-term policy for improving financing of the sector.
Ends
BANK of Uganda (BOU) will work out ways through which commercial banks are encouraged to design products for the agriculture sector, David Opiokello, BOU’s executive director for finance, has said.
Opiokello said BOU had rejected calls to set up an agriculture financing institution to support farming.
He said Uganda Development Bank and former Uganda Commercial Bank were set up to support the agricultural sector, but ended up with huge non-performing loans.
“The most important thing is to have suitable products for the sector, not an institution,†Opiokello said on Wednesday in Kampala.
Provision of credit and saving facilities to farmers and agro-businesses is one of the major constraints to the development of agriculture in Uganda, yet no comprehensive financing strategy has been developed.
Agriculture employs over 80% of the population in the country.
“The interest rates are high, but we have to map out ways of assisting farmers,†he said.
To boost the sector, BOU, the German Technical Cooperation and Swedish International Development Agency under the Financial Systems Development (FSD) programme are organising a seminar at Speke Resort Munyonyo from April 6 to 7.
Peter Rhode, FSD’s director, said the workshop under the theme, ‘Action Plan for Agricultural Finance in Uganda,’ aims at boosting preparation by key stakeholders of a long-term policy for improving financing of the sector.
Ends