Mayuge, Uganda – Friday, 10th October 2025: Equity Bank Uganda, in partnership with the Ministry of Agriculture, Animal Industry and Fisheries, officially launched the National Oil Palm Project at the Mayuge District Headquarters. The event was attended by district leaders, councilors, and various farmers from the region.
The ceremony was presided over by the State Minister for Agriculture, Animal Industry and Fisheries, Hon. Fred Bwino Kyakulaga, who was joined by Catherine Psomgen, the Director for Public Sector and Social Investment at Equity Bank.
The Government of Uganda selected Equity Bank as a strategic partner to manage the credit facility for the project. The bank is not only responsible for disbursing the funds but is also playing a critical role in capacity building for smallholder farmers, offering tailored financial and investment solutions. These solutions include risk mitigation measures and support structures to maximize the success of the farmers.
Oil palm seedlings take approximately 18 months to mature before planting. According to Equity Bank, 896 farmers have already benefited from the project in the past two years, receiving a total of UGX 1.2 billion. These beneficiaries have been trained on proper planting techniques, and supported with pesticides, fertilizers, and ready-to-plant seedlings.
“And that’s not all,” said Ms. Psomgen during the launch.
“Equity is also employing modern banking systems to track every transaction, verify beneficiaries, and ensure funds reach genuine oil palm farmers in record time.”
In his remarks, Hon. Kyakulaga noted:
“This move is going to go a long way in transforming the people of Busoga from the chronic poverty that has affected them for so long.”
Project Rollout and Beneficiaries
Currently in Phase One, the National Oil Palm Project has been rolled out in the districts of Buvuma, Mayuge, Bugiri, and Namayingo. In the next phase, the project will expand to Kamuli, Iganga, Jinja City, Bugweri, Namutumba, Luuka, and Kaliro.
To qualify, an individual farmer or a farmer group must have at least five hectares of land. Each eligible farmer receives UGX 25 million. Those with at least 2.5 hectares are eligible to receive UGX 12.5 million.
However, not all funds are disbursed directly to the farmer. The larger portion is managed through the bank in coordination with the Ministry, which pays accredited suppliers directly for the provision of inputs like pesticides, fertilizers, and tree maintenance services. The remaining portion is sent to the farmers’ accounts and closely monitored for accountability.
Economic Impact
According to Hon. Kyakulaga, Uganda has a ready domestic market for palm oil, soap, cosmetics, and other palm-oil-based products.
“At harvest, each farmer will be earning an estimated UGX 2.5 million monthly, and this income will continue for 25 to 30 years,” he emphasized.
“The Government of Uganda has provided a long-term solution to poverty and unemployment in Busoga through this National Oil Palm Project.”
