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Uganda seeks billions in innovative financing to transform agrifood systems

Kampala, Uganda | Patricia Akankwatsa | Uganda is intensifying efforts to unlock critical investments and promote collaboration in its agrifood sector, recognizing that despite notable progress, significant funding gaps, coordination challenges, and policy misalignments are impeding the sector’s full potential. With a rapidly growing population of nearly 46 million people and a reliance on agriculture for 24% of its GDP and 70% of employment, the nation faces urgent food security challenges, as highlighted by over 34% of its population remaining undernourished.

To address these pressing issues, the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF), supported by the Food and Agriculture Organization of the United Nations (FAO) and other key partners including the African Office of the Prime Minister (OPM), National Planning Authority (NPA), and Agribusiness Incubators Network (AAIN), convened the Uganda Agrifood Systems Investment and Financing Conference on June 24-25, 2025 at the Uganda Industrial Research Institute, Namanve.

The two-day event aimed to galvanize investments and foster collaboration towards achieving agrifood systems transformation under Uganda’s upcoming National Development Plan (NDP) IV (2025/2026-2029/2030).

Speaking at the conference, the Minister of State for Animal Industry, Hon. Lt. Col. (Rtd) Bright Rwamirama, affirmed the government’s unwavering commitment.

“The government is doing everything possible to make sure that we create resilience and make production that actually matches the demand and also have supplies for income,” he stated.

Minister Rwamirama highlighted significant strides in easing access to affordable financing for value chain actors. He pointed to the capitalization of financial institutions such as the Uganda Development Bank (UDB) and the introduction of targeted credit facilities, including the Agriculture Cooperative Facility in collaboration with the Bank of Uganda.

“For quite some time, the challenge in agriculture was access to affordable credit, cheap capital for financing agriculture. Government has addressed this,” he noted.

He added that direct grants are now reaching smallholders, allowing them to invest in selected enterprises.

“I am happy that every time I go out to do field work, I meet very excited faces of Ugandans,: the Minister remarked, acknowledging the positive impact of these initiatives.

He also extended gratitude to FAO, describing the organization as a “steadfast, reliable partner” for its continued technical support to the Ugandan government, particularly through MAAIF.

Yergalem Taages Beraki, the FAO Representative in Uganda, highlighted the critical timing of the conference.

“The African Union has recently adopted the third Comprehensive Africa Agriculture Development Programme (CAADP) strategy 2026-2035 and the Kampala Declaration of 2025, reaffirming efforts to build resilient agrifood systems for Africa,” Beraki stated.

He praised Uganda for taking a lead in implementing recommendations from the United Nations Food System Summits and CAADP on food system transformation, noting the important role of Uganda's National Food System Coordination Committee in enhancing multi-stakeholder collaboration.

Beraki emphasized the urgency of innovative financing, especially in light of recent budget cuts across the donor community.

“This conference on financing and investment in the agrifood system in Uganda is more important today than yesterday,” he said.

He stressed that mobilizing domestic public and private resources, coupled with transformative investments, would unlock significant economic, social, and environmental benefits, including improved nutrition, health, and climate change mitigation. This national conference also serves as a preparatory ground for a global forum on agrifood financing to be held in Rome in October.

FAO, he assured, will continue its close collaboration with the Ugandan government and other partners to ensure that collective investments contribute to “our four betters: better production, better nutrition, better environment, and better life, leaving no one behind.”

Dr. Ivan Lule, speaking on behalf of Pamela Mbabazi, the Executive Chairperson of the National Planning Authority, expressed confidence that the conference would build momentum for the second UN Food Systems Stocktaking Moment in Addis Ababa from July 26-29, 2025. He reiterated a key finding from pre-summit events: “lack of finance and investment is a critical bottleneck to the realization of food systems transformation in various countries. Therefore, our current discussion on financing is timely and welcome.”

Dr. Lule highlighted the conference’s alignment with the implementation of the Fourth National Development Plan (NDP IV), one of six plans aimed at achieving Uganda’s ambitious Vision 2040 goal of growing its GDP from $50 billion to $500 billion.

“Food systems is a critical lever towards this attainment,” he asserted.

He called for a programmatic approach to planning, budgeting, and implementation, urging government entities, development partners, civil society organizations, and the private sector to “break the silos and avoid duplication” by working towards common results within program working groups.

He stressed the importance of aligning strategic plans with NDP IV and the broader food systems agenda, emphasizing that “it’s not right to implement things that have not been planned for.”

David Wozemba, the Country Director-Uganda for AGRA, focused on the critical need for “unlocking financing for inclusive agricultural systems.” He acknowledged the persistent challenges in providing financial services like savings, credit, insurance, and payments to smallholder rural households, citing high transaction costs, uneven population distribution, poor infrastructure, and agricultural risks.

“Consequently, marginalized groups including women and youth often lack access to finance,” Wozemba observed.

He emphasized that developing inclusive financial solutions is crucial for improving livelihoods, reducing inequalities, ending food insecurity, and promoting sustainable agrifood systems.

He stressed the need to “reorganize those vulnerable groups and provide solutions that fit with them, don’t assume that all what we have fits everybody.”

To overcome these hurdles, Wozemba advocated for innovative partnerships between government, private sector entities, and non-governmental organizations. This collaboration, he argued, can design tailored financing instruments for rural populations, particularly women, youth, and smallholder farmers. He also highlighted the potential of “liberating technologies such as mobile banking, blockchains, and others to significantly reduce finance access barriers,” connecting even the most remote communities with essential financial services.

Wozemba highlighted the demographic realities: “you have to recognize that you’re dealing with smallholder farmers, which are the biggest chunk of our population. You have to recognize that these smallholder farmers, 80% of them my youth. You have to recognize that the majority of the labor is being offered by women. You have to recognize that they’re using a hand hold ” Addressing these specific needs is vital for successful agrifood transformation.

As highlighted by the UN Secretary-General, agrifood system transformation is key to fast- tracking all SDGs. The conference represents a concerted effort to translate commitment into tangible investment and action, ensuring a more food-secure and prosperous future for all Ugandans.

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