Financial institutions have revealed the opportunity available for farming groups and Agriculture cooperatives to improve, develop and modernize Agricultural production. This was revealed by most Micro-Finance and Bankers representatives during the Agri-Finance market place meeting that took place at Kagote Hall from 24th -25th November 2011.
The meeting was organized by Agri-Pro focus Uganda to address the information gap that exists among farmers on the financial products and services available in the market. The aim of the event was to support the development of smallholder agri-business by supporting access to financial services and credit.
Over 15 financial institutions in Rwenzori region represented at the meeting and shared their financial obligations to Increase agricultural productivity by rendering financial services and credit to agro-business enterprises at affordable interest rates, and in different categories ranging from farm in puts like; seeds and fertilizers, post harvest infrastructure and storage Facilities for the produce among others. According to Isingoma John Baptist officer in charge of Agriculture Centenary bank , the accepted security for acquiring an agriculture loan include; Land titles, Land agreements, animals, Households, and any asset like cars and Moto cycles.
The most cited challenge that affects the relationship of micro-finance institutions with agricultural practitioners was the seasonality of agriculture products with high risks of production that diminish the profitability of agriculture, in turn affecting the payment of farmers credit to MFIs. It’s on this argument that Hon. Aston Kajora minister for Investment encouraged farmers to form or Join Agro-Business cooperatives and Farming groups to broaden their capacity to secure and finance credit easily, increase on productivity, storage and marketing of their agricultural products.
Product display was one of the activities of the meeting. Cocoa from Bundibugyo groups, Coffee from kasese (Bukonzo Joint Cooperative), tea from Mpanga tea growers association, among others were displayed. Centenary Bank and Hofokam were awarded as the greatest financial service providers and supporters to farmers and agricultural groups at the closure of the meeting on Friday 25th November 2011.
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