UDB to inject Shs6b to empower innovators
Boosting Innovations
The Agribusiness Development Centre (ADC) executive director, Anja de Feijter, tipped farmers on the use of modern farming methods such as mechanization to increase production quantities.
KAMPALA – The Uganda Development Bank (UDB) is to inject sh6b to empower innovators to enhance their skills, acquire more machines as well as market their innovation products.
This, according to Prof. Samuel Sejjaaka, the UDB board chairman, is aimed at creating more jobs and enhancing economic development.
Sejjaaka, during the I-Growth Accelerator awards for 2017/2018 financial year, said the bank will invest sh5b as equity in viable projects, meaning they will partner with innovators until they break even, while the other Shs1b will be venture capital. The event took at Hotel Africana in Kampala.
Prof. Barnabas Nawangwe, the vice-chancellor of Makerere University, noted that there is need for the Government to offer interest-free loans to innovators so that their products can compete on the globe, saying they were laying strategies at the institution.
We at Makerere University have started new strategic plan to transform Makerere into a research-led university,” he stated.
The Prime Minister Ruhakana Rugunda, who was represented by Gabriel Ajedra, the state minister of finance in charge of general duties, noted that innovations in the agriculture are necessary for economic development of Uganda.
He reiterated the Government’s efforts in boosting innovation through the innovation funds, which are channeled through the Ministry of Science, Technology and Innovation.
The Agribusiness Development Centre (ADC) executive director, Anja de Feijter, tipped farmers on the use of modern farming methods such as merchanisation to increase production quantities.
She said farmer trainings of literacy and entrepreneurship skills are necessary for transformation of agriculture. Last year, ADC got a boost of Shs10.8b for training community-based farmer organisation on train farmers in governance, financial management and risk management, among others.
We have trained 75 farmer organisations and we are going to scale up the number of individual farmers in Hoima, Mbale and Kampala,” she stated.
Over 100 farmer groups set to benefit from 10 billion shilling fund
(From left) The managing director of dfcu Bank Juma Kisaame, ADC’s Anja de Feijter, Ambassador Henk Jan Bakker, state minister for co-operatives Frederick Ngobi, Jimmy Mugerwa and chief executive officer of Rabobank Foundation Pierre Van Hedel cutting the cake during the opening of the agribusiness centre at Kampala Serena Hotel on November 29.
Over 100 farmer groups dubbed farmer-based organisations (FBOs) countrywide that have the potential to contribute to the agricultural value chain are to benefit from the sh10.08b fund ($2.8m) obtained by Agribusiness Development Centre (ADC).
This, according to ADC executive director, Anja de Feijter will improve their operations and ultimately become bankable.
She said the organisations will receive the technical support, training on financial literacy and choice of enterprise.
The development was announced during the official launch of ADC at Kampala Serena Hotel.
The money was injected into the organisation by dfcu Bank and Rabobank Foundation in the Netherlands and the fund is set to benefit farmers for the next five years.
Feijter explained that ADC business advisory team is currently pre-visiting over 100 farmer based organisation’s (FBO’s) countrywide and that since October, 70 FBOs have been selected to receive the training skills in governance, financial management, financial literacy, marketing and risk assessment
With these skills, the farmer based operations will continue to grow their operations in ways that are of benefit to both them and the wider communities,” she noted, adding that ADC which started operations in October this year has skilled 44 farmer leaders from 20 FBOs from Lira, Dokolo, Kole, Alebtong and Oyam with skills in governance.
DFCU’s board chairperson Jimmy Mugerwa commended the efforts being taken by the farmer based organisations to acquire finances through forming groups.
Agriculture is the number one breadwinner for our country and there is a need for collective effort to support it. By facilitating ADC in its operations dfcu and Rabobank are building capacity for the farmers to access much needed financial services, he said.
He added: dfcu already provides tailor-made products for the farmers and with the capacity building delivered through ADC the smallholder farmers will be more eligible for financing from commercial banks.
They will also be better placed to increase productivity and possibly embrace commercial farming which is more profitable at household and national level.
The ambassador of the Kingdom of the Netherlands in Uganda Henk Jan Bakker noted that lack of skills is the major deterrent to work with smallholder farmers, hence the need to train and educate them in vocational training.
Allow me to make a reference to the situation in my home country. Educating and training of farmers has been one of the key elements in the successful development of the agricultural sector in Netherlands. Agricultural education and training has developed close farmers in partnership with the private sector, he stated.
