In a bid to enhance agricultural productivity and modernize farming, government through the Microfinance Support Center (MSC) together the Ministry of Local Government with support from the Islamic development bank(IsDB) have handed over six tractors to six co-operatives under the Local Economic Government Support Project (LEG).
Speaking during the handover ceremony at UMA Show Grounds in Lugogo, Vice President Jessica Alupo stated said the distribution of tractors to cooperatives is a pivotal milestone in empowering farmers to access modern tools, improve yields, and create a ripple effect of economic growth within their communities.
Alupo encouraged farmers to view the tractors as tools for wealth creation and a means to boost household incomes.
"I urge you to view these machines, not just as tools, but as instruments of wealth creation. Please use them to provide jobs, increase household incomes, and above all, transition into the money economy as a mission in the NRM government manifesto and under the president's wise leadership on social economic transformation,"Alupo said.
She praised the LEGS project that she said addresses challenges such as the lack of adequate modern agricultural technology by prioritizing mechanized agriculture, thereby enhancing agriculture, which is the backbone of Uganda's economy.
"Agriculture remains the backbone of Uganda's economy, providing livelihoods for over 70% of our population and contributing significantly to our GDP. However, the full potential of this sector remains untapped due to challenges such as limited access to modern technology, inadequate financing and the predominance of subsistence farming practices. The LEGS program, which seeks to address these barriers, is a game changer by prioritizing mechanized agriculture, the program enhances productivity, and accelerates the transition from subsistence to commercial agriculture."
She commended the Microfinance Support Center, the Ministry of Local Government, and partners such as the Islamic Development Bank for their contributions to this initiative, stating that their collaboration demonstrates that when entities work together, they can achieve extraordinary outcomes.
"I commend Microfinance Support Center for its pivotal role in managing and delivering programs like Emyooga. By fostering financial inclusion, building capacity of cooperatives and increasing access to affordable credit, Microfinance Support Center is driving social economic transformation and empowering Ugandans to create wealth and sustainable livelihoods."
The six recipients of the agro-machinery are Sao Zirobwe SACCO from Luwero District, Albertine Interventions for Development Limited (a small and medium enterprise), Adjumani Tree Nursery Limited SACCO, Ongongoja Fruit Growers' Cooperative Society Limited from Katakwi, Kijula SACCO from Kabarole, and Arumundo Mixed Farm Limited from Adjumani.
Raphael Magyezi, the Minister of Local Government, expressed pride and happiness that the government, through his ministry, has launched a project worth approximately shs 16 billion to support smallholder farmers in purchasing agricultural tractors.
Magyezi noted that the districts implementing the LEG project should consider themselves fortunate, as government is providing them with equipment such as tractors and agro-processing machinery.
"We're giving the following equipment; one a tractor set, and this comprises a tractor between 75 and 95 horsepower, the disc have of three to four discs. A disc has 1622 discs and 80 feet crawler of between five and nine tons, that is a tractor set. Secondly, as a farmer, we are giving you an agro processing facility or machinery, whether it's ground nuts or millet or cassava or coffee or maize or whatever we want to process it."
Magyezi revealed that the scheme has specific terms, stating that the government will subsidize up to 60% of the cost for farmers purchasing tractors and the attached implements, meaning the farmer will only be required to pay 40% of the total cost.
"For the agro processing machinery those small factories were giving you. the government is subsidizing the farmers, up to 50% whether its a coffee processing facility or maize, you're going to get a 50% subsidy by government. The loan you only have to pay is 50% of the cost of that machine. for the transport vehicles, government is putting a subsidy of 40%. You only have to pay 60% of the cost of the vehicle. The loan attracts an 8% mark with a six month grace period, a seasonal repayment shift. We sure that your payment is aligned to the season for your produce, two to five years repayment period."
Minister Magyezi noted that currently, LEGS is operating in only 17 districts, but added that in the second phase, it will expand to 42 districts next year, with support under the assurance of the Islamic Development Bank.
Peter John Mujuni, the Executive Director of MSC, stated that microfinance is the engine of transformation, particularly in rural communities, and emphasized that this progress has been made possible through partnerships and Saccos.
He noted that they are providing tools of production to households to help them escape poverty.
"Today is a special day for us. We know that transforming households has a lot to do with having productive assets. The poverty we talk about in Uganda is a poverty related to lacking productive assets, because maybe someone does not have a tools of production, this is what explains the poverty in the country. So for that matter, we are very excited that we are providing tourism production to the households and therefore enabling them to get out of poverty."
He praised the Vice President for leading efforts to mobilize Ugandans in the struggle for progress and transformation.
The LEGS project is operational in 17 districts including Adjumani, Katakwi, Kumi, Buikwe, Luwero, Buyende, Bunyangabo, Gomba, Rukunguri, Kibuku, Kyenjojo, Kabarole, Nakaseke, Nwoya, Tororo, Ntoroko, and Aleptong.
The key objective is to ensure that beneficiaries can actively contribute to the cash economy, create jobs, generate wealth, and drive socio-economic transformation.