Equity Bank Uganda has partnered with Guru Nanak Oil Mills (U) Limited in a major drive to transform how agricultural transactions are conducted across Uganda, with the two institutions targeting a shift from physical cash payments to secure and traceable digital transactions along the crop value chain.The partnership builds on a relationship that began in 2013, when Equity Bank started supporting Guru Nanak and its network of agricultural suppliers.
The latest initiative seeks to tackle one of the longstanding challenges in rural produce trading—the heavy dependence on cash, which exposes aggregators, traders and farmers to significant security risks.Across many farming communities, large amounts of money are still handled physically. Produce aggregators and middlemen supplying major processors can receive substantial cash payments at factory stores before travelling long distances to trading centres, creating risks of theft, loss and poor financial accountability.Guru Nanak Managing Director Surjit Singh said moving to digital payments would make transactions safer while giving suppliers better control over their earnings.
He said instant electronic transfers, combined with financial literacy support and accessible mobile cash-out services, would help farmers manage their income more effectively and invest back into their agricultural activities.As part of the rollout, Equity Bank is deploying dedicated financial officers at Guru Nanak’s mills and selected trading points. The officers will help suppliers open and use digital banking services while also providing practical financial literacy training aimed at improving money management among farmers and agricultural traders.
Equity Bank Uganda Managing Director Gift Shoko said the initiative is intended to strengthen agriculture as a viable commercial business by digitising the value chain from the point where produce is aggregated to the individual farmer. He explained that the bank will first connect with aggregators delivering produce to the mill before expanding the digital system to farmers supplying those aggregators.
The Bank’s Director for Public Sector and Social Investments, Catherine Psomgen, said Equity Bank would provide hands-on support at processing centres and weighbridges to make the transition easier. The first phase will create digital records of produce deliveries and allow Guru Nanak to pay suppliers electronically, reducing the need to transport large sums of cash
.The programme is expected to later reach smallholder farmer groups and commercial growers in major production areas, including Nwoya District. Beyond improving security, the digital system is expected to increase transparency, strengthen financial planning and give farmers and traders better tools to respond to changing market conditions, marking another step towards a more modern and financially inclusive agricultural sector in Uganda.
