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BoU Awards Banks For Promoting Agricultural Credit Facility

Stanbic bank, Post Bank and Dfcu Bank have outshined other banks in promotion of the Agricultural credit facility (ACF), according to Bank of Uganda.

BoU on Thursday evening held the first annual ACF awards and awarded the best performing Participating Financial Institution (PFIs), commercial and credit Banks that have been at the helm of promoting ACF.

The facility was put in place by government in 2009 to promote commercialization of the agricultural sector by putting in place an affordable credit facility.

Stanbic Bank won the overall best performing PFI in the commercial bank category, followed by DFCU Bank and Uganda Development Bank while Post Bank won the overall performing PFI in the credit institutions and MDI category followed by Opportunity Bank and Mercantile Credit Bank.

Post Bank, DFCU bank and Stanbic bank also dominated the other categories including; Highest loan Applications, highest loans applications absorption rates,  the highest number of loans disbursed category, interest in the scheme category, highest outreach to small borrowers, highest national coverage by region and application dossier comprehensiveness

According to the Deputy Governor BoU, Louis Kasekende, the purpose of the ACF award ceremony was to recognize the efforts of best performing banks in achieving the scheme’s objectives while mobilizing support and growth in agricultural lending but also to encourage other Bank to increase their interest in the scheme

“Given the objectives that the facility was primarily sent for, I believe the ACF has been a success contrary to the belief held by some people that the fund is not working and is inaccessible for the majority of farmers. We have seen an increase in agricultural credit financing and an improvement in agricultural production,” he said.

Kasekende added: “In the Ministry of Finance’s report issued in April 2019 assessing performance of the programmes as at December 2018; the ACF was rated at a score of 76.2 percent compared to the overall agriculture sector rating of 61.8 percent. In fact, only the Uganda Coffee Development Authority attained a higher score. The many good stories of the firms and farms that have been expanded in terms of size and output and whose productivity has improved are testament to the impact of the ACF.”

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Speaking at the awarding ceremony held at Sheraton hotel Kampala, the Finance Minister, Matia Kasaija urged commercial banks to take more interest in agricultural financing if Uganda is to achieve inclusive growth

“Agricultural is the only sector that can guarantee growth for the majority of Ugandans. I am told there has been improvement in agricultural financing but a lot still needs to be done,” he said.

“As the competition intensifies in the financial services sector partly driven by technological innovations, success will come to those who tap into sectors with the high turnovers. Agriculture despite its risky nature is one of those sectors.”

Full list

Overall best performing PFI in commercial banks and UDBl category

  1. Stanbic Bank
  2. DFCU Bank
  3. Uganda Development Bank

Overall best performing PFI in credit institutions and MDI category

  1. Post Bank
  2. Opportunity Bank
  3. Mercantile Credit Bank

Highest national coverage by region

  1. Post Bank
  2. Stanbic Bank
  3. Dfcu Bank

Loan applications submitted to Bank of Uganda

  1. Post Bank
  2. Stanbic Bank
  3. Dfcu Bank

Highest loan Absorption rates

  1. Dfcu Bank
  2. Stanbic Bank
  3. Bank of Baroda

Applications comprehensiveness (Elaborated project analysis)

  1. Stanbic Bank
  2. Uganda Development Bank
  3. Dfcu Bank

Highest outreach to small farmers

  1. Post Bank
  2. Stanbic Bank
  3. Dfcu Bank

Highest number of loans

  1. Post Bank
  2. Stanbic Bank
  3. Dfcu Bank
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