Bank of Uganda12/8/20 3:14 PM

The Agricultural Credit Facility (ACF) has devised a path-breaking innovation of block allocation to enable farmers access loans based on alternative collateral such as chattel mortgages, cash flow based financing, and character-based loans, among others, Dr.  Michael Atingi-Ego, Deputy Governor, Bank of Uganda, has revealed.  “This innovation is unlocking access to credit in areas with communal land tenure; and most especially, for micro and smallholder farmers who are otherwise excluded for lack of collateral to secure credit.“By September 2020, the ACF had advanced UGX 2.8 billion to 187 small and micro borrowers with non-traditional collateral under block allocation,” he said.The ACF is administered by the Bank of Uganda on behalf of the Government of Uganda.The Deputy Governor said that through this innovation, the ACF working with the participating institutions, has extended loans of up to UGX 20 million to small-scale farmers.He further said that block allocations support financial inclusion and advance equity in economic activity by serving women and youths with limited property rights.Dr. Atingi-Ego made the remarks just before he a launched the 2020 Agricultural Finance Yearbook at Imperial Royal Hotel, Kampala.To read his entire speech, click on this link.

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