The Minister of State for Animal Husbandry, Hon. (Rtd). Lt. Col. Bright Rwamirama, has emphasised the importance of financial institutions in unlocking Uganda’s agricultural potential.
Speaking at the Stanbic Consumer Thought Leadership Conference, held at the Kampala Serena Conference Centre today under the theme, ‘‘Accelerating the Momentum of Agro-Industrialisation’, Rwamirama called on banks to identify funding gaps in the agricultural sector, noting that agro-industrialisation is a key driver of economic growth and poverty reduction in Uganda, reason why it is a vital component of investment.
“This will improve Uganda’s agro-industrialisation potential,” Rwamirama said, adding, “Uganda’s agro-sector holds vast untapped potential. Financial institutions need to identify sector gaps, invest in productivity, and value addition.”
He hailed Stanbic Bank for partnering with the Ministry of Agriculture, Animal Industry and Fisheries to make this quest possible, noting that their commitment to inclusive and sustainable agriculture is greatly appreciated.
Rwamirama observed that agriculture is still the backbone of our economy, employing 70% of the population and contributing 24% of the GDP, reason why 80% of Uganda’s industries are agro-based.
He, however, pointed out that despite this, the sector’s potential remains untapped due to persistent challenges ranging from low productivity to post-harvest losses, poor access to markets and limited access to finances, which he said are the gaps that financial institutions should carefully look into in a bid to boost agro-industrialisation in Uganda.
The Minister revealed that banks should follow the example of the government of Uganda which is now rolling out the National Development Plan IV (NDP IV) under the theme; ‘Sustainable industrialisation for inclusive growth, employment and wealth creation, under which agro-industrialisation is the key driver of the government’s continued efforts to reduce poverty.
He noted that over the next five years, the government, through the NDP IV, is to concentrate on five key areas, which include: boosting productivity, access to quality seeds, fertilisers, mechanisation and extension services, creation of decent jobs.
The other areas of concern include promoting value addition, expanding market access, improving infrastructure, certification to meet export standards and improving access to finance through partnerships with financial institutions.
He revealed that the government also intends to ensure inclusion by deliberately empowering women, youth and People With Disabilities (PWDs) to participate in all aspects of agriculture, which also aligns with the Stanbic WYF (Women, Youth and Farmers) agenda.
Agro-Industrialisation: Gateway to Poverty Reduction
Rwamirama highlighted the vast untapped potential of Uganda’s agricultural sector, emphasising that agro-industrialisation is a crucial step towards fighting poverty in the country.
“By adding value to agricultural products and boosting productivity, Uganda can unlock its agro-industrialisation potential and drive economic growth,” he noted.
A Call to Action for Financial Institutions
The Minister urged financial institutions to identify sector gaps and invest in productivity and value addition. “Where the gap exists is where your opportunity begins,” Rwamirama said, emphasising the importance of collaboration and strategic investment in the agricultural sector.
Collaboration and Investment: Key to Unlocking Agricultural Potential
The Stanbic Consumer Thought Leadership Conference provided a platform for industry players to discuss the theme of “Accelerating the Momentum of Agro-Industrialisation.”
Rwamirama’s call to action highlights the need for financial institutions to work together with stakeholders in the agricultural sector to unlock its potential and drive economic growth.
He stressed that Uganda’s agricultural sector holds vast untapped potential, and financial institutions have a critical role to play in unlocking this potential.
By identifying funding gaps and investing in productivity and value addition, banks can help drive agro-industrialisation and contribute to poverty reduction in Uganda.
As Rwamirama rightly observed, collaboration and strategic investment are key to unlocking the country’s agricultural potential and driving economic growth.