The government is set to borrow Shs4.38 trillion to finance the expansion of solar-powered irrigation systems across Uganda as part of efforts to boost agricultural productivity and strengthen resilience against climate change.
The borrowing proposal will be presented before Parliament on Wednesday, June 10, (tomorrow) during the 4th Sitting of the 1st Meeting of the 1st Session of the 12th Parliament, where legislators will consider and approve a request authorising government to secure up to EUR 168.98 million from UK Export Finance (UKEF) and Citi Bank for Phase II of the Solar Powered Irrigation Systems Project.
The loan is intended to support the construction and expansion of irrigation infrastructure in various parts of the country, particularly in regions that frequently experience prolonged dry spells and unreliable rainfall.
If approved, the project will accelerate government’s efforts to transform agriculture from largely rain-fed production to all-year-round farming, enabling farmers to maintain production even during drought periods.
Solar-powered irrigation systems use energy generated from sunlight to operate water pumps that draw water from rivers, lakes, dams and underground sources before distributing it to farms through irrigation networks. The technology significantly reduces the cost of irrigation by eliminating reliance on diesel-powered pumps and reducing electricity expenses.
Government officials have repeatedly argued that expanding irrigation is critical to improving food security, increasing agricultural exports and protecting farmers from the effects of climate change, which have increasingly affected crop production across the country.
Uganda has over the years invested in a number of large and small-scale irrigation schemes under the Ministry of Agriculture, Animal Industry and Fisheries, with projects established in several districts to support commercial agriculture.
The schemes have enabled farmers to grow crops throughout the year, increase yields and improve household incomes.
The proposed financing is expected to fund additional solar-powered irrigation infrastructure, water abstraction systems, distribution networks and related agricultural support facilities aimed at increasing the acreage under irrigation.
Parliament will debate the proposal before deciding whether to authorise the borrowing, a requirement under the law for all major government loans.
