Bankers call for increased lending to the Agriculture sector

By Ritah Kemigisa
Commercial banks under their umbrella body Uganda Bankers Association (UBA) have called for increased credit financing towards the agricultural sector.

The association is hopeful that Agriculture which employs 70% of Ugandans can promote decent youth employment and inclusive growth.

Addressing journalists ahead of the 3rd Annual Bankers conference due on 16th July 2019, UBA’s chairman Patrick Mweheire says much as investment in agriculture has increased, private credit financing to the sector remains insufficient.

According to statistics from the bankers association, loans to agriculture make up about 13% as compared to other sectors like trade and real estate which are over 19% and 20% respectively.

Mweheire has now called more coordination between the private and public players in promoting the growth of the agricultural sector.

He adds that the banks can offer interventions that can mitigate the risks involved and ensure its sustainable growth and investment.

The conference will run under the theme “De-Risking financing and investment in agriculture to promote decent youth employment and inclusive growth.”

UBA’s executive director Wilbrod Owor says this year’s conference aims at facilitating a focused discussion among key players and stake holders regarding financing of agriculture while leveraging on several perspectives for mitigating risk including market incentives, technology and insurance among others.