The Deputy Resident District Commissioner (RDC) for Kibale, Godfrey Kamagara, has called on the commercial banks to reduce bureaucratic procedures that make it difficult for farmers and other intended beneficiaries to access government agricultural financing programmes.
Kamagara made the call during a one-day sensitisation workshop organised by the Uganda Cooperative Alliance (UCA) in partnership with the Bank of Uganda and other financial institutions. The workshop was aimed at educating members of the public, particularly farmers and women, about available government credit programmes and how they can access agricultural financing and women’s funds.
According to Kamagara, although the government has introduced several initiatives to provide affordable financing to farmers and other vulnerable groups, many intended beneficiaries continue to miss out because of complicated procedures and requirements imposed during the loan application and disbursement processes.
He said the situation is particularly concerning in rural communities, where many farmers have limited knowledge of formal banking procedures, lack some of the documents required by financial institutions and may not have collateral or other forms of security demanded when applying for credit.
Kamagara urged the Bank of Uganda and participating financial institutions to review the procedures involved in accessing government-supported agricultural funds and make them simpler, more transparent and accessible to ordinary citizens.
He noted that government programmes such as the Grow Fund and other agricultural credit initiatives are intended to improve access to finance, increase agricultural production, create employment and improve household incomes. However, he warned that the objectives of such programmes cannot be achieved if the intended beneficiaries are unable to navigate the procedures required to access the funds.
“Government is putting money in these programmes to support ordinary Ugandans, especially farmers and women, but if the procedures are too complicated, the people who are supposed to benefit will continue to be left out,” Kamagara said.
He encouraged financial institutions to strengthen public awareness and provide clear information about eligibility requirements, application procedures, repayment terms and the responsibilities of beneficiaries.
Kamagara also called for increased cooperation between local leaders, financial institutions, cooperatives and farmer groups to ensure that communities receive accurate information about government financing opportunities.
He said cooperative societies and organised farmer groups could play an important role in helping beneficiaries understand financial products and meet the requirements set by lenders.
The workshop provided an opportunity for participants to learn about agricultural credit facilities, women-focused financing programmes and the role of financial institutions in supporting economic development. Participants were also given an opportunity to seek clarification from representatives of banks and other stakeholders on how they could apply for and utilise available funds.
The Deputy RDC further encouraged beneficiaries to use borrowed funds for the intended purposes and to embrace proper financial management. He said access to credit should go hand in hand with responsible borrowing, record keeping and timely repayment so that other members of the community can also benefit from the programmes.
Agriculture remains a major source of livelihood for many households, particularly in rural Uganda. However, limited access to affordable credit continues to constrain farmers who require capital to purchase inputs, expand production, acquire equipment, improve storage and add value to their agricultural products.
Stakeholders at the workshop therefore stressed the importance of bringing financial services closer to communities and ensuring that information about government-supported credit programmes reaches the people for whom the funds are intended.
Kamagara’s call comes at a time when government and financial institutions are increasingly encouraging farmers, women and organised groups to embrace formal financial services and use credit to grow their enterprises.
He appealed to banks and other financial institutions to strike a balance between protecting public funds and making access to credit practical for ordinary Ugandans.
He said reducing unnecessary bureaucratic hurdles would not only enable more beneficiaries to access government funds but would also contribute to increased agricultural production, household incomes, job creation and broader economic development.
The workshop concluded with a call for continued sensitisation of communities so that potential beneficiaries are aware of available financing opportunities and understand the procedures for accessing them.