Parliament has approved a proposal to borrow up to €168.98 million (about Shs710 billion) from UKEF and Citi Bank to finance Phase II of the Solar Powered Irrigation Systems Project, a major government initiative aimed at boosting agricultural productivity and strengthening climate resilience.
Presenting the proposal to Parliament, Finance Minister Henry Musasizi said the project will facilitate the development of 427 solar-powered irrigation systems across the country, with a particular focus on coffee-growing communities.
According to Musasizi, the initiative is designed to increase rural incomes by improving agricultural production and productivity through reliable access to irrigation water.
"The project seeks to increase coffee yields through the provision of irrigation systems in 126 districts, helping farmers cope with the effects of climate change and prolonged dry spells," Musasizi told Parliament.
He said the second phase builds on the success of Phase I, which has achieved more than 99 per cent physical completion.
Under the first phase, 434 solar-powered irrigation systems were established across Uganda, improving access to water for farming and delivering significant economic benefits to rural households.
"Collectively, these initiatives have enhanced water security and productivity for 206,465 households and a total population of 908,447 across Uganda," Musasizi said.
The minister noted that climate change continues to pose a major threat to agricultural production as water resources become increasingly scarce.
He said prolonged dry seasons have resulted in substantial crop losses, affecting farmers' incomes and livelihoods.
The second phase of the project is expected to directly benefit approximately 2,562 households, translating into about 11,785 beneficiaries.
Beyond infrastructure development, the project will strengthen agricultural extension services at sub-county, parish and district levels.
Implementation will be undertaken through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) extension programmes and the Coffee Department to ensure farmers receive the technical support needed to maximise productivity.
Government says the investment will play a critical role in improving water security, increasing coffee production and strengthening the resilience of farming communities as Uganda seeks to modernise agriculture and mitigate the effects of climate change.