The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and Equity Bank have launched the National Oil Palm Project’s credit program on Friday in the Busoga region, targeting economic transformation for smallholder farmers.
The ceremony at the Mayuge District Headquarters was presided over by State Minister for Agriculture Fred Bwino Kyakulaga, joined by Equity Bank Director for Public Sector and Social Investment Catherine Psomgen. Equity Bank has been selected by the government to manage the crucial credit facility for the project.
Minister Kyakulaga framed the initiative as an answer to chronic poverty in the Busoga sub-region, noting the strong local demand for palm oil, soap, and cosmetic products. He projected that at harvest, individual farmers could earn about Shs2.5 million monthly for up to 30 years, thus providing long-term economic stability.
Equity Bank confirmed the financial scope, stating that within two years, 896 farmers have already benefited from the facility, totaling Shs1.2 billion disbursed so far. The bank’s role extends beyond merely holding funds; it ensures accountability by using modern banking systems to verify beneficiaries and track every transaction, according to Psomgen.Â
She emphasized that Equity is also providing capacity-building and support, including ready-to-plant oil palm seedlings, pesticides, and fertilizers.
To access the funds, a farmer or group must dedicate at least five hectares of land to receive the maximum support package of Shs25 million. The funds are carefully managed: the majority is handled by the bank, which directly pays approved suppliers for maintenance, materials, and training, with the remaining portion remitted to the farmers’ accounts and strictly followed up for accountability.
The first phase of the project is underway in Buvuma, Mayuge, Bugiri, and Namayimba, with a second phase slated for the next year to include additional districts such as Kamuli, Iganga, Jinja City, Bugweri, Namatumba, Luuka, and Kaliro.
