Government through the Microfinance Support Center (MSC) is currently targeting to provide financial and technical support to over 400, visit web 000 farmer groups in the whole country under the agricultural loan scheme.
This was revealed by the MSC CEO John Peter Mujuni during a networking event held Wednesday evening at Hotel Africana.
The event was aimed at interacting and sharing information on finding solutions and a way forward on how a common farmer deep in the village can be helped to gain financially from agriculture using his small land and resources.
Mujuni noted that, as much as Uganda is an Agricultural based economy, agriculture still remained the least funded with almost 69% of the farmers still doing subsistence farming and earning peanuts from it.
He said that even with loans set up through village Sacco’s and different groups; a lot is left to be done for the Ugandan farmers to shift to commercial or modern farming.
“We can only offer loans to these farmers but we need partners who can help in modernizing Agriculture to come on board because Uganda will never achieve a middle income status if we do not modernize the agricultural sector,” he said.
William Matovu, the Country Director Heifer Uganda, an organization that is partnering with MSC to eradicate poverty and hunger in the country said that the problem of funding is still a threat to a common farmer in the deep villages because they are not aware of the availability of small interest loans that are being issued.
Matovu said the government still has big job of availing information to the farmers on how to easily get these loans and pay back.
He said; “Agriculture is a hard business to fund because of the uncertainties that are involved. However, it is the only possible way to eliminate poverty in the majority of Ugandans. That’s why it is important for government to continue funding it by providing subsidized loans and the technical knowledge needed to improve it.”
Currently MSC is supplying over $1.6 billion to over 1614 client institutions in different parts of Uganda.
Over 3457 groups have so far gained from the funds.
MSC is a governmental organization mandated to provide financial and business development services to small and medium business that are still in their start up stages.
It has different loan schemes that include agriculture loan, commerce loan, business development loan, teachers loan and environmental loan.