• Contact Us
  • About Us
  • Advertise
  • Donate
  • Login
Watchdog Uganda
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
Watchdog Uganda
No Result
View All Result

Parliament approves US$65 million loan for farmers

watchdog by watchdog
4 years ago
in National, News
6 0
The Chairperson of the Committee on National Economy, Hon Syda Bbumba

The Chairperson of the Committee on National Economy, Hon Syda Bbumba

ShareTweetSendShare

Ugandans engaged in the agricultural sector are poised to receive stimulus packages following the approval of a request authorising government to guarantee Uganda Development Bank (UDB) to borrow US$65 million.

Parliament approved a request to authorize government to guarantee UDB to borrow US$15 million from the European Investment Bank, US$10 million from Islamic Trade Finance Corporation, US$20 million from OPEC fund for International Development and US$20 million from the Arab Bank for Economic Development.

Presenting the report on the request, during the plenary sitting on 21 April 2021, the Chairperson of the Committee on National Economy, Hon Syda Bbumba said the funds are being deployed in the agriculture, manufacturing and agro-industrial sectors.

She added that the bank only received funding to implement a component of the government stimulus package which was specifically to mitigate and support the faster recovery of the economy from the negative impacts caused by the Covid-19 pandemic.

“UDB has not received any funding to bail out struggling businesses and funding received was not meant to be given out as package or grant to struggling businesses,” she said.

MPs welcomed the loan but raised concern over the high interest rate of 13 per cent arguing that it is not favourable for farmers who are already struggling to stay in the sector.

“If I can borrow an example from the agricultural banks in Thailand, if you are a community and you are borrowing, the interest is 0.01 per cent and if you are an individual, maximum interest rate is 6 per cent. These are factors we need to consider if we want to empower our people,” said Hon. Lawrence Songa (NRM, Ora County).

Adjumani District Woman Representative, Hon Jessica Ababiku, said that while Ugandans have been yearning for such a loan to boost farmers, majority of the borrowers will be constrained to borrow because of the high interest rate.

“The interest rate needs to be reduced because majority of borrowers are constrained by capital. If we say interest rate is at 13 per cent, it will not help the small borrowers; it will only be advantageous to huge borrowers,” said Ababiku.

Hon Jack Wamanga-Wamai (FDC, Mbale Municipality) said that the high interest rates demotivate Ugandans from venturing into the agricultural sector.

“Government should attract people to engage in agriculture by giving loans with low interest rates. When you keep interest rates high, people will shun agriculture and come to the city to look for white collar jobs,” said Wamanga-Wamai.

The Leader of the Opposition, Hon Betty Aol Ocan expressed concern about local farmers who cannot afford loans with high interest rates.

“These loans go to those who are already established and yet majority of our farmers are still in subsistence farming. They cannot access loans with high interest rates,” Aol Ocansaid.

Hon. Gilbert Olanya (FDC, Kilak South County) asked government to ease accessibility of the loan to farmers upcountry by opening branches countrywide.

“UDB should liaise with other banks in the districts because it becomes difficult for farmers upcountry to travel to the city to process the loan,” said Olanya.

Hon Syda Bbumba said that the high interest rate is attributed to the cost of borrowing the loan. She also told the MPs that UDB does not work directly with consumers but through government owned banks including Pride Microfinance, Housing Finance and Post Bank.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
Share1Tweet1SendShare

Related Posts

Business

Victoria University Strengthens Ties with Busoga Kingdom Through Educational Partnership

1st July 2025 at 13:40
News

President Museveni to officiate at St. Gonzaga Gonza Day celebrations 

1st July 2025 at 11:17
News

UVTAB and Presidential Industrial hub officials meet to ensure competence of skilling project beneficiaries 

1st July 2025 at 11:04
Next Post
Katende, Ssempebwa & Company Advocates

LIST: Uganda’s top 15 ranked lawyers

  • Prostitution in Uganda- Courtesy Photo

    10 dangerous hotspots known for prostitutes in Kampala

    1100 shares
    Share 440 Tweet 275
  • LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

    2282 shares
    Share 913 Tweet 571
  • Uganda’s Billionaires 2025: Once Again Sudhir Ruparelia Leads a Resilient Pack

    39 shares
    Share 16 Tweet 10
  • Pastor Bugingo Seeks Reconciliation with Teddy and Children, Prays for Makula’s Twins

    18 shares
    Share 7 Tweet 5
  • LIST : Gov’t releases Revised Salary Structure for Teachers, Police, and Prisons Staff for FY 2024/2025

    112 shares
    Share 45 Tweet 28
Facebook Twitter

Contact Information

Watchdog Uganda is a portal for solution journalism, trending news plus cutting edge commentaries in the fields of politics, security, business, tourism, entertainment, technology, agriculture, climate change, environment, public health et al. We also give preference to Ugandan community news and topical discussions. The portal also publishes community news and topical discussions.

Email: editorial@watchdoguganda.com
To Advertise:Click here

Latest News

Dr. Sudhir Ruparelia to Headline UK-Africa Business Summit in London on 12 September 2025

1st July 2025 at 14:24
Speke Resort Munyonyo Hosts Groundbreaking Leadership Training for Senior Staff

Speke Resort Munyonyo Hosts Leadership Training for Senior Staff

1st July 2025 at 14:06

Check out

  • Trending
  • Comments
  • Latest
Minister Muruli Mukasa

LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

24th May 2020 at 10:45
Pregnant woman

Shock as 17-year old boy impregnates his two sisters during Covid-19 lockdown 

17th June 2020 at 08:17
Sudhir Ruparelia is set to speak at business forum in United Kingdom

Billionaire Sudhir’s wisdom on how to invest in real estate

0

How a boy’s destiny turned from cotton grower to communications guru

0

Dr. Sudhir Ruparelia to Headline UK-Africa Business Summit in London on 12 September 2025

1st July 2025 at 14:24
Speke Resort Munyonyo Hosts Groundbreaking Leadership Training for Senior Staff

Speke Resort Munyonyo Hosts Leadership Training for Senior Staff

1st July 2025 at 14:06

© 2025 Watchdog Uganda

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News

© 2025 Watchdog Uganda