Agriculture is the backbone of Uganda’s economy, employing over 70% of the working population and contributing 24% to the country’s Gross Domestic Product (GDP).
However, despite its significant contribution, the sector accounts for less than 4% of the national tax base. This stark contrast highlights the vast untapped potential of Uganda’s agricultural sector, yet it is a key driver of economic development.
This deduction was made by Paul Bitature Muganwa, the Executive Director at Stanbic Bank, during the Stanbic Consumer Thought Leadership Conference held today at Kampala Serena Conference Centre, under the theme, ‘Accelerating the Momentum of Agro-Industrialisation’.
“Agro-industrialisation means going beyond cultivation. It means adding value through processing, packaging, logistics, and export. It means building systems; entire ecosystems that move agriculture from subsistence to surplus, from local to global,” Muganwa said.
“This is not an abstract ideal. It is a necessity. With agriculture employing over 70% of Uganda’s working population, contributing 24% to GDP, yet accounting for less than 4% of our national tax base, we are sitting on untapped wealth. At Stanbic, we measure success not just in profits but in impact. Uganda is our home, we drive her growth through partnerships, affordable finance, and digital tools that empower women, youth, and farmers,” he added.
Untapped Opportunities
Muganwa highlighted that statistics indicate that only 35% of Uganda’s arable land is under productive use, leaving a vast amount of land untapped.
“This is a call to action for stakeholders in the agricultural sector, including farmers, investors, and financial institutions, to exploit this wealth,” he emphasised.
Stanbic Bank Uganda’s Commitment
Muganwa also revealed that Stanbic Bank Uganda is committed to supporting the development of the agricultural sector through a number of interventions.
“As investors, partners, and enablers, we are dedicated to providing strategic funding to producers, aggregators, processors, and exporters across the entire value chain,” he noted, adding, “In 2024 alone, we dedicated over Shs450 billion of our loan book to agriculture, demonstrating our commitment to unlocking the sector’s potential.”
A Comprehensive Approach
Stanbic Bank Uganda’s approach to agro-industrialisation is comprehensive, covering the entire value chain. Muganwa pointed out that by providing funding to various stakeholders, the Bank is supporting the growth and development of the sector, which will, in turn, drive economic growth.
“Our strategic funding is designed to enable farmers and agribusinesses to increase productivity, improve efficiency, and expand their operations,” he said.
According to Muganwa, Agro-industrialisation is the future of Uganda’s agricultural sector.
This is because by adding value to agricultural products and building entire ecosystems that support the sector, Ugandans can unlock the sector’s vast potential.
He concluded by stating that Stanbic Bank Uganda is committed to supporting this journey, providing strategic funding and expertise to stakeholders in the agricultural sector, noting that together we can transform Uganda’s agricultural sector and drive economic growth and development.