PostBank Uganda, in partnership with the Federation of Small and Medium Sized Enterprises (FSME), recently conducted a financial literacy training for cassava farmers in Arua District as part of its Agric-SME Development Programme.
PostBank Uganda has announced a remarkable 70% growth in its agricultural loan book over the past four years, from Ushs. 107 billion in 2021 to a staggering Ushs. 181 billion by June 2024. This impressive performance can be attributed to a combination of favorable lending rates, government support, and targeted financial products that cater to the diverse needs of the agricultural sector.
The agricultural sector is a vital component of Uganda’s economy, employing approximately 68% of the working population and contributing 24% to the country’s GDP. PostBank Uganda has positioned itself as a key player in supporting this sector through its agricultural loan products, which finance various stages of the agricultural value chain, including production, processing, and marketing.
According to Julius Akais, Supervisor Agriculture and Partnerships at PostBank Uganda, the bank’s commitment to designing affordable and customer-centric products has driven the growth of its loan book. “We are dedicated to fostering prosperity for Ugandans by providing financial solutions that address their needs at different agricultural production phases,” Akais said.
The bank’s success can be attributed to several factors, including targeted financial products, financial literacy programs, enhanced outreach and services, and strategic partnerships with agricultural stakeholders. PostBank Uganda has also leveraged technological advancements to make banking services more accessible to farmers and agribusinesses.
Government support through the Agricultural Credit Facility loans has also played a crucial role in the bank’s performance. With interest rates as low as 12% per annum, these loans have made it possible for farmers and agribusinesses to access affordable financing.
As the commercialization of agriculture continues to gain momentum, PostBank Uganda remains committed to supporting the sector through innovative financial solutions. “Financing will continue to play a critical role in increasing the sector’s performance, enabling farmers and agribusinesses to produce quality products for both local and international markets,” Akais concluded.