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Farmers fail to use Shs500b credit facility

The State Minister for Animal Industry, Maj Bright Rwamirama, has said the Ministry of Finance has embarked on mechanisms through which farmers can start benefiting from a Shs500 billion credit facility to improve farm production.

While addressing the National Farmers Council at their annual assembly last week, Maj Rwamirama, said his ministry is disappointed with the low absorption of the Shs500 billion facility which Bank of Uganda created for 15 commercial banks to disburse to farmers so as to mechanise their farms.

“Government has been putting aside Shs60 billion for the last four years to 15 commercial banks so that farmers can buy tractors, milk pumps, post-harvest handling equipment and ox-ploughs for farm power but unfortunately the absorption rate has been only 40 per cent, because farmers cannot write bankable projects,” he said.

He added that in order for farmers to benefit from this line of credit, they must prove that they are going to produce something from which they will repay the loan and advised them to stop working in isolation because it breeds exploitation by middlemen since they lack a voice to lobby. 

From Daily Monitor