A new UGX 2 billion funding programme has been introduced to support small-scale farmers and agribusiness operators in Northern and Eastern Uganda, with a focus on improving access to finance, boosting agricultural production and promoting value addition.The initiative, known as the Sustainable Pathways for Rural Outreach and Upward Transition into Nature-positive Growth (SPROUT) Project, is being implemented by aBi Finance Ltd in partnership with ASA Microfinance.The programme is designed to support women farmers and agricultural enterprises that have historically struggled to access affordable financial services needed to grow their businesses.
The launch of the fund comes at a time when Uganda is working to achieve the goals of the National Financial Inclusion Strategy II (2023–2028), which seeks to expand access to quality financial services, improve financial awareness, strengthen consumer protection and encourage environmentally friendly financing.Mona Muguma, the Chief Executive Officer of aBi Finance Ltd, said many rural communities continue to face major challenges in accessing funds required to expand agricultural activities.She explained that while agriculture remains a key pillar of Uganda’s economy, the sector still receives a limited share of private sector financing due to concerns raised by lenders, including risks associated with farming, limited collateral and unpredictable income patterns.Muguma noted that farmers need more support to invest in modern farming solutions such as solar-powered irrigation, improved agricultural inputs, efficient processing machinery and climate-friendly farming practices.She added that many communities in Northern and Eastern Uganda remain financially underserved, limiting their ability to increase production, create jobs and protect their livelihoods from economic and environmental shocks.
The project follows a period when climate challenges affected agricultural financing in some parts of the country. In 2025, beneficiaries reached through related programmes in Northern and Eastern Uganda reduced from 87,737 to 79,201 after weather-related disruptions affected agribusiness performance and slowed lending activities.Muguma said climate change continues to threaten Uganda’s agricultural sector, making it important to promote financing solutions that help farmers adopt sustainable and resilient farming methods.Through SPROUT, aBi Finance aims to strengthen rural financing by working with partners whose operations can increase lending opportunities in underserved areas.The project will support ASA Microfinance to improve its agricultural loan products by creating financing conditions that better reflect the needs of farmers, including more suitable repayment periods, loan structures and collateral requirements.The initiative will particularly benefit women farmers involved in activities such as irrigation, food processing, sustainable production and other green agricultural investments.In addition, SPROUT will support the expansion of financial services through the establishment of new ASA branches in Northern and Eastern Uganda, making it easier for rural entrepreneurs to access funding.
The programme will also focus on financial education, with about 5,000 women-led agribusinesses expected to receive training in financial management, responsible borrowing and green finance.At least 30 percent of the trained beneficiaries are expected to go on and obtain green loans to invest in environmentally sustainable businesses.According to Irene Maberi, one of the key challenges preventing women farmers from accessing finance has been the requirement for physical collateral.She said the programme will introduce alternative approaches where borrowers can use their financial participation and savings as part of the security arrangements instead of relying only on traditional assets.The organisers believe the initiative will help strengthen agricultural value chains, increase productivity, support processing industries and create more opportunities for rural communities in Northern and Eastern Uganda.
