The PostBank Uganda head office in Kampala
HABARI DAILY I Kampala, Uganda I Agribusiness, which has been credited with enhancing global food systems, and offering economic opportunities to many, has received a major boost from PostBank Uganda.
The bank has recorded a 24% growth in its agribusiness loan book between 2023 and 2024, reflecting the bank’s robust commitment to transforming Uganda’s agricultural sector.
Julius Akais, PostBank’s Supervisor, Agriculture and Partnerships, said the growth comes amid a broader push to promote food security, rural development, and commercial farming in Uganda.
“With 70% of the population engaged in agriculture, our efforts are expected to result into a transformative impact on the country’s economy, creating new opportunities for economic growth and job creation in rural communities, which aligns with our purpose of fostering prosperity for Ugandans,” he said.
He further noted that this growth is a testament to the success of PostBank’s strategic shift toward value chain financing and risk management in agricultural lending.
“By recognising agriculture as a complex ecosystem rather than just a production process, PostBank has positioned itself as a key partner in the sector’s transformation,” he said, adding that this new approach supports not only large-scale commercial farmers but also smallholder farmers engaged in critical value chains such as dairy, poultry, and coffee.
Key to this transformation is the government’s Agriculture Credit Facility, which has been instrumental in mitigating risks associated with farming.
Julius Akais, PostBank’s Supervisor, Agriculture and Partnerships
“Through this program, we offer loans at reduced interest rates, with the government sharing 50% of the associated risks. The government’s role in subsidising interest payments for qualifying farmers further strengthens the financial foundation for agribusiness growth,” added Akais.
He further said that PostBank’s increased focus on supporting specific value chains, including maize, beans, soya beans, sorghum, and hay, has proven to be a successful strategy.
“This has solidified our position as a leader in agricultural financing. Our active involvement in the agricultural development process includes regular field visits, technical support, and staged funding, making us more than just a lender but a key partner in ensuring long-term success for Ugandan farmers.
He added that as the bank continues to grow its agricultural portfolio, it remains focused on sustainability, evaluating loans not just for financial returns but also for their broader impact on the environment and society.
“Our approach is set to continue driving the transformation of Uganda’s agricultural landscape, fostering prosperity for farmers and the economy alike.”
PostBank has gone a long way towards supporting Uganda’s agro industry, which is a large and significant sector, contributing substantially to the country’s economy and employment.
This industry employs about 70% of the working population and accounts for roughly 24% of the Gross Domestic Product (GDP). It also plays a crucial role in export earnings, with agriculture contributing over 50% of the country’s exports.
