The Agricultural Credit Facility (ACF) has disbursed more than Shs1.23 trillion to support commercial agriculture in Uganda since its establishment in 2009, the Bank of Uganda (BoU) has said.
According to Richard Byarugaba, the Executive Director for Finance at the Bank of Uganda, the facility was created to promote the commercialisation of agriculture by providing affordable financing to farmers and agribusinesses across the value chain.
“The Agricultural Credit Facility (ACF) was established by the government in 2009 to promote the commercialisation of agriculture by providing affordable credit to individuals and enterprises engaged in agricultural activities,” Byarugaba said.
Speaking in the context of the Fourth National Development Plan (NDP IV), Byarugaba noted that the facility has recorded measurable impact across on-farm production, agro-processing and other value-adding activities. He said that as of the end of June 2025, ACF funding had reached approximately 7,666 beneficiaries nationwide.
“In terms of measurable impact, the Agricultural Credit Facility has provided funding for on-farm activities, processing and other value-adding activities across the agricultural sector,” he said. “As of the end of June 2025, the facility has extended a total of UGX 1.23 trillion to about 7,666 beneficiaries.”
Byarugaba explained that loans under the ACF are offered at an interest rate of 12 per cent and are extended through all financial institutions licensed by the central bank, ensuring wide access to farmers and agribusinesses.
“We provide financial support through the Agricultural Credit Facility to individuals and businesses engaged along the agricultural value chain,” he said. “Loans under this facility are offered at a 12 per cent interest rate and are extended in partnership with all institutions licensed by the Bank of Uganda.”
He emphasised that access to the facility is driven by demand and readiness, rather than allocation quotas, and is open to all Ugandans prepared to engage in commercial agriculture.
“Under the Agricultural Credit Facility, funds are available to anyone ready and able to engage in commercial agriculture,” Byarugaba said. “The facility does not allocate funds arbitrarily; disbursement is driven by demand and readiness from farmers and agribusinesses.”
However, he clarified that the ACF specifically targets income-generating agricultural ventures and is not intended for subsistence farming.
“The Agricultural Credit Facility is designed for commercial agriculture and is not intended for farmers producing solely for domestic consumption,” he said. “It targets individuals and businesses that can generate income from their agricultural activities, ensuring they are able to repay the loan.”
The ACF is one of the government’s key financing instruments aimed at transforming agriculture into a commercially viable and sustainable sector, in line with Uganda’s broader development objectives under NDP IV.
