Bank of Uganda Governor Michael Atingi-Ego has unveiled a plan to overhaul agricultural finance, calling for urgent action to empower smallholder farmers with digital tools, climate-smart solutions, and stronger market systems.
Speaking at Opportunity International’s Agriculture Finance Summit under the theme “Propagate”, Atingi-Ego told a gathering of CEOs, innovators, farmers, and development partners that agriculture is both a victim of climate change and a foundation for economic resilience.
“Agriculture is not the oldest profession because it is easy; it is the oldest because it is the most hopeful act a human being can perform,” he said, stressing that the sector employs 70% of Uganda’s workforce and contributes 24% to GDP. He linked his vision to Uganda’s Tenfold Growth Strategy, which aims to transform the country from an agricultural importer into a surplus processor through agro-industrialization.
A key priority is solving what he called the “trust problem” that keeps smallholder farmers locked out of formal finance. He proposed a digital financial passport—a verifiable record of farmers’ transactions, harvests, and credit histories—to open access to loans and investment.
He praised local fintech pioneer Ensibuuko Technologies for digitizing savings and lending in rural SACCOs and VSLAs, converting village cash boxes into secure, data-driven mobile wallets. “This is not a technology problem; it’s a trust problem,” he said, noting that digital inclusion can unleash both capital and human potential, particularly for women and youth in low-income communities.
To protect farmers from climate-related shocks, Atingi-Ego advocated for blended finance models and micro-insurance. He cited the Agricultural Credit Facility’s low non-performing loan rate of 1% and ACRE Africa’s AI-powered drought insurance, which pays banana farmers within 14 days of a disaster. “Micro-insurance is no longer a charitable add-on—it delivers a triple dividend: it transfers risk before disaster, sustains investment after disaster, and lowers the cost of capital in ordinary times,” he explained.
The governor also urged adoption of sustainable technologies such as solar irrigation pumps and satellite-based weather and soil monitoring to increase yields and stabilize incomes.
He highlighted warehouse receipt systems and inclusive contract farming as tools for stronger market linkages. These, he said, have unlocked UGX 62 billion in credit and enabled farmers to sell when prices are 18–35% higher, turning post-harvest surpluses into household security.
Atingi-Ego closed with a rallying call for measurable action, predicting that private sector credit will grow from UGX 26 trillion to UGX 260 trillion by 2040 if the right investments are made. “We must move from talk to transformation,” he urged.
