Agri-Financing Uganda, an initiative of Financial Access and its partners SNV and the Embassy of the Kingdom of the Netherlands, aims to create financial access for smallholder farmers. The initiative has partnered with the Inclusive Business Accelerator to promote the agribusiness ventures in their network and to provide networking opportunities to them.
The goal of Agri-Financing Uganda is to improve the attractiveness of the local agribusinesses to the financial service providers. Agri-Financing offers agribusiness owners training and coaching aimed at strengthening their commercial capacities, business and investment planning, marketing, business governance and financial literacy as well as help refine their inclusive business models. The project also improves networking and visibility of agribusinesses through developing business profiling, and facilitating physical and online networking.
Finance for food and agriculture sectors
It is crucially important to stimulate finance for the food and agriculture sectors in emerging markets. Increased investment is key for the growth of the sector that is expected to feed 9 billion people by 2050. There is a need for increased production, productivity and uptake of technology in the sector. These developments are dependent on having access to finance. In emerging markets, large scale production is generated by networks of smallholder farmers. Stimulating the sector’s inclusive growth in these economies will require increased investment.
Agri-Financing Uganda works with farmer multipurpose cooperatives, limited agribusiness companies and farmer producer associations. Multipurpose cooperatives (registered at national level) are owned by at least 30 farmers or groups of producer associations, who as shareholders work in cooperation to create access to quality inputs, volume production and marketing. Limited companies are owned by few people, usually less than 10, and registered nationally. Most limited companies are involved in food processing and marketing.
Farmer producer associations are smaller collaborations of producers, maximum of 30 farmers. These associations are mainly engaged in bulk production and selling through the cooperatives. Cooperatives and limited companies tend to have more business knowledge at the management level compared to farmer associations.
Increased business knowledge
Based on experience, success can be found by increasing business knowledge and entrepreneurial capabilities among the management. In addition, access to strong networks and financing opportunities is essential. Agri-Financing encourages local farmers in Uganda to dream big and offers support for reaching their goals. The project aspires to facilitate learning and inclusive growth enabling the smallholders to become key players in the market.
To learn more about Agri-Financing Uganda and the ventures supported by the initiative visit the project’s profile on IBA.