In a recent address at the Margarita Palace Hotel in Lira City during the Lango region Town Hall meeting, the Bank of Uganda has strongly advised farmers across the nation to take full advantage of the Agricultural Credit Facility (ACF) to enhance the agricultural sector and boost the overall economy. The ACF has been operational for a span of 14 years, and during this time, it has successfully disbursed sh813 billion to farmers, thanks to continuous collaboration with various financial institutions.
Winnie Wuliisa, the Head of Disbursements and Recovery at the central bank, emphasized that farmers can avail loans through the ACF at significantly lower interest rates compared to those offered by financial institutions under the Bank of Uganda’s supervision. She explained that the Bank of Uganda manages these funds in partnership with the government, with both entities contributing 50% each.
Wuliisa also elaborated on the loan terms, revealing that the interest rate stands at 12% annually. This translates to a manageable 1% monthly interest, and the loan term cannot exceed eight years. This initiative, which combines government and financial institutions, aims to provide essential funding for farmers at affordable interest rates.
Bank of Uganda’s Deputy Governor, Michael Atingi Ego, expressed the bank’s commitment to actively engage with the people they serve. He highlighted the importance of town hall meetings as platforms for the Bank of Uganda to both communicate its work’s impact and gather feedback from the public. Atingi stressed that the views and feedback from the community are invaluable for enhancing the bank’s performance and aligning with the interests of all Ugandans.
He emphasized the central role of transparency in the bank’s operations. Transparency and accountability regarding the bank’s governance, policies, and outcomes are critical in reducing uncertainty and contributing to better policy outcomes. Atingi underscored the need for the bank to be comprehensible and accessible to the public, avoiding complicated technical jargon and staying engaged with the communities.
Atingi summarized the bank’s responsibilities into three key pillars: maintaining price stability in the markets, overseeing the safety and stability of supervised financial institutions, including banks and microfinance deposit-taking institutions, and ensuring the reliability and convenience of the payment system, encompassing currency notes, coins, and mobile money.
The town hall meeting drew participants from commercial banks, farming communities, and prominent leaders within the Central Bank.
