KAMPALA, Uganda — PostBank Uganda announced a 24% growth in its agribusiness loan portfolio between 2023 and 2024, the bank said Thursday. This increase reflects the bank’s focus on supporting Uganda’s agricultural sector.
The growth, according to PostBank, is due to its strategic shift toward value chain financing and risk management in agricultural lending. The bank said it views agriculture as a complex system and aims to be a key partner in its development, supporting both large-scale commercial and smallholder farmers in sectors like dairy, poultry, and coffee.
PostBank highlighted the government’s Agriculture Credit Facility as crucial in reducing farming risks. The program allows PostBank to offer loans at lower interest rates, with the government sharing 50% of the risk. The government also subsidizes interest payments for eligible farmers, which PostBank said strengthens the financial stability for agribusiness growth.
The bank’s increased focus on specific value chains, including maize, beans, soybeans, sorghum, and hay, has been a successful strategy, further establishing its role in agricultural financing. PostBank said its involvement goes beyond lending, including field visits, technical support, and phased funding to ensure the long-term success of Ugandan farmers.
Julius Akais, PostBank’s supervisor for agriculture and partnerships, said the growth aligns with a broader effort to promote food security, rural development, and commercial farming in Uganda. With 70% of the population engaged in agriculture, PostBank anticipates its efforts will significantly impact the national economy, creating economic opportunities and jobs in rural areas.
PostBank said it remains committed to sustainability as it expands its agricultural portfolio, assessing loans for both financial returns and their environmental and social impact. The bank expects its approach to continue driving the transformation of Uganda’s agricultural sector, benefiting farmers and the economy.
