Stanbic Bank Uganda this week signed a Memorandum of Understanding (MoU) with Buganda Kingdom through the Buganda Cultural and Development Foundation (BUCADEF) to promote coffee farming among youth in the kingdom.
This strategic partnership, which was signed at Mengo, Bulange between the First Deputy Katikkiro, Prof. Twaaha Kigongo Kawaase and Paul Muganwa, the Stanbic Bank Executive Director and Head of Corporate Investment, aims to provide farmers with agro-inputs at relatively affordable prices, encouraging youth to engage in coffee farming and contributing to the sustainability and growth of Uganda’s coffee sector.
According to Stanbic Bank, the main objective of this initiative is the establishment of Ssemaduuka Wobwakabaka Bwa Buganda, a comprehensive, one-stop agricultural centre that will serve as a hub for inputs, advisory services, mechanization, and tailored financing solutions for farmers and Savings and Credit Cooperative Organizations (SACCOs) across the Buganda region.
Muganwa underscored the bank’s commitment to partnerships that catalyse socio-economic transformation, particularly for women, youth, and farmers.
“Our purpose goes beyond banking,” Muganwa said, adding, “We are actively engaged in initiatives that drive Uganda’s social-economic progress, and this partnership aligns perfectly with our approach to empower communities and ensure no one is left behind.”
He noted that in 2024, Stanbic invested over Shs454 billion in Uganda’s agricultural sector, including Shs170 billion in direct support to SACCOs in a bid to drive access to affordable credit to smallholder farmers.
Muganwa explained that through its Economic Enterprise Restart Fund (EERF), Stanbic Bank has enabled thousands of smallholder farmers to rebuild post-pandemic, offering affordable credit and capacity-building resources.
“With interest rates as low as 10% for agricultural loans and 12.5% for other sectors, our EERF has reached nearly 7,000 SACCOs, positively impacting more than 2.6 million Ugandans. Today’s partnership reflects our inclusive agenda for socio-economic transformation,” Muganwa revealed.
Speaking at the event, Owek. Hajji Kaawaase, hailed Stanbic bank for this initiative and commitment to fighting poverty in Buganda region, citing strong alignment with the Kingdom’s broader development goals of eradicating poverty, disease, and illiteracy.
“Seventy percent of Uganda’s economic activities are carried out in Buganda,” Owek. Kawaase said, adding, “This partnership is not only timely, but also strategic. We call upon the people of Buganda to leverage Stanbic’s robust network and services now available more widely across the Kingdom.”
Key Deliverables
According to Muganwa, the agreement outlines several key deliverables designed to uplift the agricultural sector and strengthen farmer capacity.
He noted that Stanbic Bank will establish agricultural one-stop centres in each of Buganda’s counties, ensuring that farmers have localised access to the tools and resources they need.
These centres, he said, will offer affordable, collateral-free financing tailored to the agricultural cycle, with repayment schedules aligned to harvest seasons. In addition, free financial literacy training will be rolled out for all participating farmer groups.
As part of the bank’s broader push for digital inclusion, Muganwa revealed that the beneficiaries will be integrated into FlexiPay, Stanbic’s secure digital platform, to streamline transactions and promote transparency.
Muganwa explained that the initial rollout of the initiative will focus on Buddu, Buwekula, and Mawokota counties, with plans to address persistent barriers to quality inputs, irrigation systems, and mechanised farming tools, including tractors.
Emmanuel Naigombe, the Head of Agribusiness at Stanbic Bank, highlighted the practical nature of the initiative, saying, “We recognise the challenges farmers face every day. Our goal is to bring the support they need closer to home and make it financially manageable. With the right tools and support, farmers can thrive, and so will Uganda.”
He observed that this partnership signals a shared vision between one of Uganda’s leading financial institutions and its most influential cultural institution, which is a powerful alliance that promises to reshape the future of agriculture in the region.
Fighting Poverty through Job Creation
The partnership between Stanbic Bank and Buganda Kingdom is expected to have a significant impact on poverty reduction in the region. By engaging youth in coffee farming, the initiative will:
Create jobs
Coffee farming will provide employment opportunities for youth, enabling them to earn a steady income and improve their livelihoods.
Increase in income
By providing agro-inputs at affordable prices, farmers will be able to increase their yields and income, reducing poverty and improving food security.
Empowering youth
The partnership will empower youth to take ownership of their economic development, equipping them with modern farming skills and knowledge.
Boosting Economic Growth
The partnership is also expected to contribute to economic growth in the region. By promoting coffee farming among youth, the initiative will:
Generate revenue
Coffee farming will generate revenue for youth, which will enable them to contribute to the local economy and stimulate economic growth.
Increase coffee production
By providing agro-inputs and modern farming skills, farmers will be able to increase their coffee production, contributing to the growth of Uganda’s coffee sector.
Promote economic development
The partnership will promote economic development in the region, contributing to the country’s overall economic growth and development.
Engaging Youth in the Coffee Value Chain
The partnership between Stanbic Bank and Buganda Kingdom is focused on engaging youth in the coffee value chain, including:
Production
Providing agro-inputs and modern farming skills to youth to improve coffee production.
Processing
Creating opportunities for youth to engage in coffee processing, adding value to the crop and increasing its marketability.
Trade and marketing
Equipping youth with the skills and knowledge to market and sell their coffee, increasing their income and revenue.
By empowering youth through coffee farming, the partnership between Stanbic Bank and Buganda Kingdom is expected to have a significant impact on poverty reduction and economic growth in the region.