Stanbic Bank has teamed up with the Buganda Cultural and Development Foundation (BUCADEF), the socio-economic arm of the Buganda Kingdom, under the transformative “Mwanyi Terimba” initiative.
The partnership was officially announced following the signing of a Memorandum of Understanding (MoU) held at Bulange, Mengo on Tuesday.
The initiative is part of efforts to bolster coffee farming in the region and introduces a one-stop centre, the Ssemaduuka Wobwakabaka Bwa Buganda. This is designed to serve as a comprehensive hub for agricultural inputs, advisory services, agricultural mechanization, and financing for farmers and Savings and Credit Cooperative Organizations (SACCOs) in the Buganda region.
Paul Muganwa, Stanbic Bank’s Executive Director and Head of Corporate Investment Banking expressed the bank’s commitment to driving economic growth in Uganda, particularly in uplifting women, youth, and farmers.
“Our purpose goes beyond banking. We are involved in activities that drive Uganda’s economic development, particularly focusing on the transformation of Women, Youth and Farmers,” he said.
Muganwa also took the opportunity to congratulate Kabaka Ronald Muwenda Muteebi II on his 70th birthday, framing this partnership as a celebratory extension of the festivities.
He highlighted that Stanbic Bank’s substantial investment in agriculture, noting that it has extended over UGX454 billion across the sector, including UGX170 billion directed to SACCOs.
In addition, he noted that the bank’s Economic Enterprise Restart Fund (EERF) has provided crucial credit and capacity-building support, especially to smallholder farmers in the aftermath of the Covid-19 pandemic.
“With interest rates set at 10% for agricultural loans and 12.5% for other economic activities, the fund has reached nearly 7,000 SACCOs, benefiting over 2.6 million members since its inception. Because we are pursuing an inclusive socio-economic transformation agenda, this is why we are here today so that no one is left behind,” Muganwa said.
The signing ceremony also saw representation from various farmer groups, including Myanzi Coffee Farmers, Kibuuye Coffee Growers, and the Masaka Youth Coffee Production group, who expressed enthusiasm about the partnership’s potential to enhance their agricultural output.
Owek. Hajji Twaha Kaawaase Kigongo, the First Deputy Prime Minister of Buganda, welcomed the Stanbic Bank’s initiative, emphasizing its alignment with the Kingdom’s agenda to combat illiteracy, disease, and poverty.
“Seventy percent of Uganda’s economic activities take place in Buganda. Therefore, this partnership is timely and strategically beneficial for Stanbic,” he noted.
Kigongo, therefore, urged the public to take advantage of the bank’s services, which offer a robust network throughout the Kingdom.
Key Features of the MoU
- Construction of One-Stop Centers: Stanbic Bank will establish agricultural one-stop centers across all counties in Buganda, ensuring accessibility for farmers.
- Affordable Financing: Groups under BUCADEF will have guaranteed access to affordable, collateral-free financing at below-market interest rates, with repayment tied to harvest seasons, not monthly basis.
- Financial Literacy Training: The bank will provide free financial literacy programs for all farmer groups, integrating them into a secure and seamless digital platform through Flexipay.
- Initial Focus Areas: The initiative will start in Buddu, Buwekkula, and Mawokota counties, addressing the hurdles farmers face in accessing quality agricultural inputs and mechanization, including tractors and irrigation systems.
Emmanuel Negombye, Stanbic’s Head of Agribusiness, emphasized the initiative’s goal of making essential services more accessible to farmers, saying, “We understand the challenges they face, and this initiative brings these services closer to them in a financially manageable way.”
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