Parliament has approved an additional Shs 774.339 Billion loan from Citibank to finance the proposed Enhancing Agricultural Production, Quality and Standards for Market Access Project.
This decision comes despite the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) currently grappling with a staggering US$720.61 Million (UGX2.507 Trillion) in earlier external loans that are reportedly lying idle, accruing interest, and hindering project implementation.
The approval followed a tense plenary sitting on October 29, 2025, where the issue of the Ministry's poor project implementation capacity took center stage.
Presenting the majority report, Robert Migadde, Vice Chairperson of Parliament’s Committee on National Economy, voiced serious concerns over the perennial project delays within the Ministry of Agriculture.
He highlighted that the failure to utilize earlier secured funds has left most externally funded projects under the Ministry's docket non-performing.
Migadde called on the Ministry to significantly strengthen its institutional capacity to implement projects efficiently.
Key recommendations included establishing a fully staffed and technically competent project management unit with clear timelines, deliverables, and performance indicators to ensure the new loan is effectively utilized.
The concerns were echoed with greater urgency in a minority report co-authored by Hassan Kirumira (Katikamu South) and Charles Tebandeke (Bbale County).
The duo directly questioned MAAIF’s capability to manage the latest loan, citing a litany of failed or non-performing projects.
They disclosed that many externally funded projects are stalled due to internal delays.
For example, projects like Strengthening Smart Climate Agriculture and Agro-Climate Information System are reportedly non-performing.
Furthermore, initiatives such as Building a Competitive and Sustainable Seed System have failed due to the delayed approval of specifications and design, while the Market Development and Linkage for Selected Market Value Chain project failed because of delays in designing the implementation roadmap.
Kirumira then pointed to concrete examples of alleged mismanagement and wasted resources, specifically focusing on agricultural mechanisation centers.
“Projects like the establishment of the agricultural mechanisation centres in Buwama, Agwata, Kiryandongo all failed to start, particularly in Agwata Mechanisation Centre in Dokolo where the Ministry of Agriculture launched and lied to the President that the centre is operational, it is non-operational, it was abandoned, a few Police officers are guarding the place in a bushy area, what a waste of taxpayers’ money!” Kirumira stated emphatically.
Despite the strong opposition and documented history of non-performance, the majority of Parliament ultimately voted to approve the new Euro loan, pinning their hopes on the Ministry following through on the recommendations to drastically improve its project implementation framework.
The focus now shifts to MAAIF and its ability to activate the existing multi-trillion shilling dormant loans and ensure the new Citibank funds deliver the promised enhancements to agricultural production.