Rock Classic Hotel Hall was filled to capacity as key stakeholders gathered for a town hall meeting with the Bank of Uganda (BoU) Governor, Michael Atingi-Ego, as the chief guest.
The engagement, aimed at enhancing financial literacy, also sought to create awareness about various government loan facilities offered through financial institutions.
During the meeting, Governor Atingi-Ego revealed that over shs242 billion has been disbursed to the Eastern region under the Agricultural Credit Facility (ACF).
This initiative, a public-private partnership between the government and financial institutions, was designed to boost farmers and enhance agricultural productivity.
However, while the facility has provided much-needed capital, some leaders raised concerns that production influx has negatively impacted profits, making loan repayments difficult for farmers.
They argued that the excess supply of agricultural products without proper market linkages and value addition has turned the loans into a financial burden instead of an opportunity for growth.
Several leaders present at the meeting urged the government to strengthen the agricultural value chain to ensure that farmers can fully benefit from the funds.
The group pointed out that without structured market access and price stabilization mechanisms, many farmers struggle to get fair prices for their produce.
Some leaders even called for loan waivers to relieve farmers of the financial strain they now face.
In response to the concerns raised, Governor Atingi-Ego emphasized the urgent need for investment in agro-processing facilities as a lasting solution to the sector’s challenges.
He explained that processing agricultural products would add value, reduce post-harvest losses, and stabilize prices, ensuring that farmers earn higher and more consistent incomes.
“Rather than looking at loan waivers, we must focus on long-term solutions that make agriculture profitable. Processing facilities will help farmers turn raw produce into high-value products, increasing market access and revenue,” said Atingi-Ego.
He also encouraged farmers and cooperatives to explore partnerships with financial institutions to secure funding for setting up processing plants.
According to him, the government, through the Bank of Uganda, is committed to facilitating financial literacy and ensuring farmers can make informed economic decisions.
The engagement in Tororo was part of the Bank of Uganda’s ongoing financial literacy campaign, aimed at fostering public cooperation and improving access to financial services.
The campaign seeks to educate individuals and businesses on proper financial planning, responsible borrowing, and investment strategies to maximize the benefits of available credit facilities.
Stakeholders at the meeting welcomed the BoU’s initiative but urged the government to take a more holistic approach by integrating credit facilities with market expansion strategies, storage solutions, and processing incentives to ensure the sustainability of agricultural investments.
As the discussions continue, it remains to be seen whether the government will consider partial loan waivers or introduce policy interventions to stabilize the agricultural sector
Meanwhile, BoU officials assured stakeholders of their commitment to financial inclusion and sustainable economic growth for farmers across the country.
The town hall meeting highlighted the pressing challenges facing farmers in Eastern Uganda, particularly in navigating loan repayment amid fluctuating market conditions.
While financial literacy is key to proper fund utilization, investment in agro-processing and market structures appears to be the long-term solution to ensuring farmers benefit from government loan facilities.
As financial institutions and policymakers deliberate on the way forward, farmers remain hopeful that their concerns will translate into practical policy changes that secure their livelihoods and the future of Uganda’s agricultural economy.