Sunflower growing in Northern

Contacts:

Bank of Uganda P.O.Box 7120

Table of Contents

Table of Contents ...... i List of Figures ...... ii List of Tables ...... iii Abbreviations ...... iv 1 Executive Summary ...... 1 2 Government Remittances to the ACF Escrow Account ...... 3 3 Cumulative Loan Applications and Disbursements ...... 4 4 Funds Committed ...... 7 5 Utilization of the Funds under the Scheme ...... 9 6 Working Capital for Grain ...... 12 7 Repayments and Outstanding ACF Balances ...... 14 8 Non-Performing Loans under ACF ...... 15 9 Performance during the Quarter ...... 16 10 Impact of COVID-19 on loans advanced under the ACF ...... 18 11 Marketing and Publicity of the Scheme ...... 19 12 Major Challenges ...... 21 13 Way Forward ...... 22 14 Conclusion ...... 23 Appendix 1 Salient Features of the ACF Scheme ...... 24 Frequently Asked Q &A on ACF in key local languages ...... 28

Bank of Uganda ACF Progress Report as at September 30, 2020 i

List of Figures

Figure 1: GoU Transfers to the ACF Escrow Account for Period 2009-2020 ...... 3 Figure 2: Cumulative Disbursements per PFI ...... 5 Figure 3: ACF Portfolio growth as at September 30, 2020 ...... 6 Figure 4 Promoting Commercial fruit growing in Kayunga ...... 6 Figure 5: Promoting Livestock farming in ...... 8 Figure 6: Areas funded as at September 30, 2020 (Projects disbursed and committed) ...... 9 Figure 7: Enhancing Floriculture Farming for Export- Mpigi district ...... 11 Figure 8: Modern Poultry Farming in Lira District ...... 11

Bank of Uganda ACF Progress Report as at September 30, 2020 ii

List of Tables

Table 1: GoU Transfers to the ACF Escrow Account as at September 30, 2020 ...... 3 Table 2: Loan Applications and Disbursements per PFIs as at September 30, 2020 (UGX) ...... 4 Table 3: Committed Funds as at September 30, 2020 ...... 7 Table 4: ACF Portfolio grouped by activity funded (Projects disbursed & Committed by end Sept 2020) ...... 9 Table 5: Categorization of loans by size as at September 30, 2020 ...... 10 Table 6: Grain Facility (GF) Performance Cumulative as at September 30, 2020 ...... 12 Table 7: Cumulative PFI repayments, outstanding balances, Remittances as at September 30, 2020 ...... 14 Table 8: Non-Performing Loans as at September 30, 2020 ...... 15 Table 9: ACF Scheme Quarterly Performance Figures in UGX ...... 16

Bank of Uganda ACF Progress Report as at September 30, 2020 iii

Abbreviations

ACF Agricultural Credit Facility BOA Bank of Africa-Uganda Limited BOB Bank of Baroda (Uganda) Limited BBU Barclays Bank of Uganda Limited (Current Absa) BOU Bank of Uganda CAGR Compound Annual Growth Rate CBL Limited (In receivership) CERUDEB Limited CIs Credit Institutions DFCU DFCU Bank Limited DTB Diamond Trust Bank Uganda Limited EBUL Equity Bank Uganda Limited Exim Uganda Limited FIA Financial Institutions Act 2004, Amendments and Regulations FTB Limited GIZ Gesellschaft fur Internationale Zusammenarbeit GoU Government of Uganda GTB Global Trust Bank Limited (Closed) HFB Limited KCB KCB Bank Uganda Limited MAAIF Ministry of Agriculture, Animal Industries and Fisheries MCB MDIs Micro Deposit-Taking Institutions MoA Memorandum of Agreement MoU Memorandum of Understanding MoFPED Ministry of Finance Planning and Economic Development NGO Non-Governmental Organization OBL Limited OBUL Opportunity Bank Uganda Ltd OWC Operation Wealth Creation PBU Post Bank Uganda Limited PFIs Participating Financial Institutions PFMA Public Finance Management Act SBU Stanbic Bank Uganda Limited SCB Standard Chartered Bank Uganda Limited SME Small and Medium Enterprises TFB Top Finance Bank Uganda Limited TBL Limited TWC Technical Working Committee

Bank of Uganda ACF Progress Report as at September 30, 2020 iv

TV Television UDBL Uganda Development Bank Limited UAA Uganda Agribusiness Alliance UGX Uganda Shillings USSIA Uganda Small Scale Industries Association

Bank of Uganda ACF Progress Report as at September 30, 2020 v

1 Executive Summary

The Agricultural Credit Facility (ACF) which was established in 2009 by the Government of Uganda (GoU) has demonstrated steady progress over the years. Since 2010, the Scheme had registered significant growth of the loan book from UGX 21.02 billion to UGX 525.99 billion (or UGX 0.53 trillion) cumulative total disbursements as at September 30, 2020 extended to 813 eligible projects across the country; of which GoU contribution amounted to UGX 267.19 billion. The disbursement amount included Eighteen (18) block allocations comprising of 168 eligible projects for micro and small farmer borrowers; with a total loan amount of UGX 2.81 billion of which GoU contribution amounted to UGX 1.63 billion as refinance; with timely repayments as per the amortisation schedules. Out of the entire portfolio, UGX 46.09 billion had been committed for projects pending fulfilment of disbursement conditions by the respective PFIs, while a cumulative total of UGX 141.98 billion has since been repaid to Bank of Uganda. By September 30, 2020, GoU had transfered UGX 153.56 billion to the ACF capital Account for onlending to viable projects. Therefore, the GoU contribution of UGX 267.19 billion was attributable to the Capital Account funds and the repayments/reflows. A total of Twenty Four (24) projects with outstanding GoU contribution amounting to UGX 5.82 billion had been declared delinquent (NPL) by the respective PFIs which represents 2.17 percent of the total loans refinanced to the PFIs up from 1.24 percent prior to the Covid-19 pandemic.

The ACF is playing a leading role in providing medium to long term financing towards private sector investments and projects engaged in primary agricultural production, agro-processing and value addition to raw agricultural outputs, post harvest management, the Grain trade, commercialisation and modernisation of agriculture; with the requisite for increased capacity to create jobs, augment household income, boost export promotion and import substitution; in order to foster socio-economic transformation through agri-led industrialisation. A desk review was undertaken basing on a Sample of 100 funded projects to establish employment generated and other economic benefits. The Sample revealed that over 24,000 jobs were created and approximately 209,000 outgowers with readily available markets for their produce under the Outgrowers Schemes with the large aggregators funded under the ACF.

The Scheme is a Risk Sharing public-private partnership between the Government of Uganda (GoU) and the Participating Financial Institutions (PFIs) namely Commercial Banks, Micro Deposit Taking Institutions (MDIs), Credit Institutions (CIs) and Uganda Development Bank Ltd (UDBL). The key objective of the ACF to bridge the financing gap for commercialised agricultural production by facilitating the provision of medium and long term financing to projects engaged in crop and animal husbandry in the various agricultural value chains; at more concessionary terms than what is available in the financial sector. The ACF operates as a refinance mechanism that enables PFIs undertake due diligence on potential borrowers, disburse agricultural loans to eligible and viable projects and thereafter seek for re- imbursement from Bank of Uganda (BoU), the Fund Administrator on behalf of GoU; in accordance with the governing ACF Memorandum of Agreement [MoA] 2018.

Bank of Uganda ACF Progress Report as at September 30, 2020 1

Considering that the Scheme is a revolving Facility, the repayments/reflows were used to finance new applications for eligible projects. The cost of funds for the ACF loans remained steady at a maximum interest rate of 12% per annum (or 1% per month) and below, during the period under review. Loan durations ranged between 6 months to 8 years maximum, while grace period was up to 3 years per sub- loan to an eligible borrower.

For quarter ended September 30, 2020, the ACF registered a cumulative number of loan applications totalling 1,030 amounting to loan value of UGX 926.73 billion up from UGX 909.78 billion in the previous quarter (an increase of UGX 16.98 billion or 1.87 percent). The increasing demand for the ACF loans over the last few years was driven by the aggressive publicity of the Scheme by BoU in conjunction with the PFIs and the farmers’ awareness about the low cost ACF loans. The continued need for the ACF loans is reflected in the pipeline at BoU amounting to UGX 47.40 billion worth of loan applications from farmers, agri-businesses and grain traders through their respective PFIs. BoU has written to the MoFPED requesting for stepping up the capitalization of the Scheme to meet the increasing demand.

The COVID-19 pandemic continued to negatively impact on agricultural production and agribusinesses. The lockdown suffocated several activities in the agricultural sector and affected labour availability, among others. Production levels were affected resulting in low income, reduced savings and business cashflows; which disrupted loan servicing and continued to impact on the half yearly expected repayments by PFIs to BoU. To address this adverse impact, BoU issued Credit Relief and Loan Restructuring Guidelines for Supervised Financial Institutions (SFIs); intended to mitigate liquidity shortfalls in the financial sector and permit SFIs to restructure loan facilities granted prior to 1st April 2020 for a period of up to 12 months. As at September 30, 2020, BoU had processed 83 project applications from PFIs with an outstanding amount of UGX 21.57 billion for restructuring loan facilities.

Notwithstanding the capitalization status that needs urgent attention by the Government, the ACF maintained its prominence as a recognized distribution model under the PPP approach between the GoU and PFIs. The Scheme is well positioned to supply medium to long term financing to value chains in the agricultural sector, at more affordable terms to farmers and agro-processors. Noted as one of the best performing GoU funded programmes with enhancement in operational efficiency and increasing absorption capacity, the ACF attracted a rating of 85.23 percent for ACF from the Budget Monitoring and Accountability Unit [BMAU] of the MoFPED in their FY 2019/2020 Agriculture Sector Semi - Annual Budget Monitoring Report on GoU funded programmes.

Finally, BoU in collaboration with the World Bank signed the ToRs and commenced the process of carrying out an extensive Impact Assessment Study (IAS) on the ACF during the FY2020-2021. The IAS is intended to establish the extent to which the Scheme has achieved its intended objectives; and its entire socio-economic impact to the Country. The Study will attempt to demonstrate and quantify outcomes of the ACF interventions, inform policy review on the possible expansion of the Scheme scope as well as guide future interventions.

Bank of Uganda ACF Progress Report as at September 30, 2020 2

2 Government Remittances to the ACF Escrow Account

The ACF is a revolving Facility where PFI loan repayments are rolled back into the Scheme. Since inception, GoU has remitted UGX 155.36 billion to the ACF to cover disbursements and PFIs have made commitments to match the GoU contribution in accordance with the MoA (2018). The remittances include UGX 1.80 billion advanced to cater for ACF marketing activities. Table 1 and Figure 1 below highlight a breakdown of the GoU remittances to BoU as at September 30, 2020. Table 1: GoU Transfers to the ACF Escrow Account as at September 30, 2020 AMOUNT Transfer to Transfer to ACF BALANCE ON FINANCIAL YEAR REMITTED TO BOU Operations A/C Capital A/C ESCROW A/C ESCROW A/C (for ACF Publicity) 2009/2010 20,599,434,400 20,599,434,400 - - 2010/2011 19,964,478,648 7,905,978,648 - 12,058,500,000 2011/2012 7,500,000,000 19,558,500,000 - (12,058,500,000) 2012/2013 15,000,000,000 15,000,000,000 - - 2013/2014 30,000,000,000 - - 30,000,000,000 2014/2015 26,000,000,000 30,000,000,000 - (4,000,000,000) 2015/2016 50,586,800 - 50,586,800 - 2016/2017 22,000,000,000 - - 22,000,000,000 2017/2018 600,000,000 26,050,000,000 600,000,000 (26,050,000,000) 2018/2019 400,000,000 - 400,000,000 2019/2020 600,000,000 21,950,000,000 550,000,000 (21,900,000,000) 2020/2021 12,650,000,000 12,500,000,000 600,000,000 - TOTAL 155,364,499,848 153,563,913,048 1,800,586,800 - Source: Bank of Uganda

Figure 1: GoU Transfers to the ACF Escrow Account for Period 2009-2020

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 3

3 Cumulative Loan Applications and Disbursements

Since the inception of the ACF, the Scheme has received 1030 loan applications amounting to UGX 926.76 billion of which UGX 525.99 billion has been disbursed to 813 eligible projects, with the GoU contribution amounting to UGX 267.20 billion. Table 2 and Figure 2 below show a detailed breakdown of both loan applications and disbursements per PFI as at September 30, 2020.

Table 2: Loan Applications and Disbursements per PFIs as at September 30, 2020 (UGX)

NUMBER OF LOAN NUMBER OF TOTAL GOU PROJECT APPLICATIONS PFI PROJECTS DISBURSEMENT CONTRIBUTION APPLICATIONS AT BOU DISBURSED (UGX) (UGX) RECEIVED (UGX)

PBU 280 43,249,400,000 231 33,798,643,234 21,534,903,617

SBU 169 292,965,613,715 135 132,493,336,673 65,798,453,696

DFCU 123 146,198,001,252 117 130,717,167,305 65,069,512,548

OPBL 105 12,858,649,600 81 9,888,561,600 5,719,536,800

UDBL 56 87,623,570,093 49 60,163,357,206 30,057,630,603

CERUDEB 61 20,735,115,688 47 19,531,190,480 9,670,090,565

EBUL 67 55,237,326,760 41 10,955,246,512 5,462,623,256

HFB 43 17,361,844,223 38 12,704,322,366 6,352,161,183

BOB 35 100,495,000,000 21 59,102,528,112 29,551,264,056

BOA 18 15,900,000,000 13 10,525,000,000 5,262,500,000

Absa/BBU 11 44,934,639,377 9 9,855,233,114 4,777,616,557

TBL 11 23,040,000,000 6 16,700,000,000 8,350,000,000

KCB 10 11,380,540,000 6 5,180,540,000 2,466,770,000

FTB 10 2,666,000,000 4 792,000,000 396,000,000

DTB 8 14,748,000,000 3 3,300,000,000 1,650,000,000

Pride 3 180,000,000 3 180,000,000 90,000,000

CBL* 6 19,565,000,000 2 2,080,000,000 1,040,000,000

OBL 2 5,500,000,000 2 2,600,000,000 949,300,000

SCB 2 5,000,000,000 2 5,000,000,000 2,515,000,000

TFB 2 400,000,000 2 400,000,000 470,000,000

GTB* 3 175,000,000 1 30,000,000 15,000,000

IBUL** 2 5,410,000,000 0 - -

MCB 3 1,140,000,000 0 - -

TOTAL 1030 926,763,700,708 813 525,997,126,602 267,198,362,881 Source: Bank of Uganda *Defunct PFIs **Changed name to Exim Bank (U) Limited ***Former Barclays Bank of Uganda Ltd.

Bank of Uganda ACF Progress Report as at September 30, 2020 4

Figure 2: Cumulative Disbursements per PFI

Source: Bank of Uganda

From Table 2 and Figure 2 above, 78.93% of the loan applications received at BoU were financed under the ACF. PostBank (U) Limited (PBU) had the highest number of beneficiaries under the Scheme accounting for 28.41% of the total number of projects financed, although it ranked 5th with UGX 33.79 billion in the total value of loans disbursed.

Stanbic Bank (U) Ltd, DFCU Bank Ltd, Bank of Baroda (U) Ltd and UDBL had the highest value of loan disbursements representing 72.71% or UGX 382.46 billion of the total loan disbursements. The first three (3) PFIs are Commercial Banks with a wide branch network across the country.

The ACF has registered growth since inception with disbursements increasing to UGX 525.99 billion as at September 30, 2020 up from UGX 21.02 billion in 2010. Cumulative disbursements since inception of the Scheme are depicted in Figure 3 below;

Bank of Uganda ACF Progress Report as at September 30, 2020 5

Figure 3: ACF Portfolio growth as at September 30, 2020

Source: Bank of Uganda

Due to the aggressive marketing and creation of public awareness since 2017, the ACF loans generated increased demand hence the spike in loans disbursed from 2018 as highlighted in Figure 3 above.

Figure 4 Promoting Commercial fruit growing in Kayunga

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 6

4 Funds Committed

Committed funds result from projects approved by BoU and financed by PFIs. However, re-imbursement of the GoU contribution is pending fulfilment of the conditions stipulated in the loan offer letters issued to the PFIs, one of them being submission of proof of disbursement to the eligible borrower and a duly executed Promissory Note to BoU. As at quarter end, committed funds under GoU contribution amounted to UGX 46.09 billion. Table 3 below shows a breakdown of committed funds per PFI as at September 30, 2020. Table 3: Committed Funds as at September 30, 2020

Amount of Committed GoU Commitments PFI funds(PFI) (UGX) (UGX) Absa Bank 688,167,485 344,083,742 Bank of Baroda 818,488,334 409,244,167 Centenary bank 2,791,487,000 1,395,743,500 DFCU 15,631,133,880 7,815,566,940 Housing Finance Bank 2,007,500,000 1,003,750,000 Finance Trust 1,094,000,000 547,000,000 Opportunity bank 460,000,000 230,000,000 Postbank 775,000,000 475,500,000 Stanbic bank 54,007,022,886 27,003,511,443 UDBL 13,733,189,988 6,866,594,994 Total 92,005,989,573 46,090,994,786 Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 7

Figure 5: Promoting Livestock farming in Masaka

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 8

5 Utilization of the Funds under the Scheme

Several projects under various agricultural value chains have been financed by the Scheme since its inception. These include On farm activities which comprise farm improvement projects such as construction of structures including valley dams, hatcheries, green houses with irrigation systems and excavation of fish ponds among others; and purchase of machinery/equipment including tractors that facilitate enhanced farm production. Other categories of activities funded include; Financing working capital for grain trade; Livestock; Post-harvest management such as warehouses, silos, etc and Agro processing, that involves value addition. Scheme utilization analysis under this section considers both disbursed and committed funds. Table 4 and Figure 6 below show a breakdown of the Scheme disbursements and commitments grouped by activity funded as at September 30, 2020.

Table 4: ACF Portfolio grouped by activity funded (Projects disbursed & Committed by end Sept 2020)

NUMBER OF TOTAL LOAN AMOUNT GOU CONTRIBUTION FUNDED ACTIVITY PROJECTS UGX UGX

On farm Activities 675 156,462,555,436 82,035,408,630 Financing working capital for grain trade 130 236,511,726,864 118,263,863,432 Live stock 40 6,099,999,800 3,233,799,900 Post-harvest Management 44 57,767,778,118 29,187,460,259 Agro-processing/Agro business(value addition) 102 161,161,055,954 80,568,825,447 TOTAL 991 618,003,116,172 313,289,357,668 Source: Bank of Uganda

Figure 6: Areas funded as at September 30, 2020 (Projects disbursed and committed)

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 9

As highlighted in Table 4 and Figure 6 above, financing working capital for grain trade accounted for UGX 236.51 billion or 38% of the total loan portfolio implying a high average loan size in this segment. An amount of UGX 161.16 billion or 26% of the total amount disbursed and committed was extended to Agro processing and value addition projects, although it accounted for only 102 projects out of the total 991 beneficiaries. Farm based projects, which include acquisition of farm machinery and equipment, purchase of biological assets, acquisition of water supply systems and bush clearing, among others, constituted 25% of the total projects funded and accounted for UGX 156.46 billion of the total amount disbursed and committed. This segment continued to register the highest number of projects funded, which resonates with the Scheme’s objective of commercializing, mechanizing and modernising agriculture. Borrowers under the On Farm Activities segment are largely smallholder farmers whose loan sizes vary between UGX 10 million and UGX 50 million which further confirms that the ACF has ensured increased access to credit by the micro and smallholder farmers; country wide.

Cumulative disbursements and commitments according to loan size are further analysed in Table 5 below.

Table 5: Categorization of loans by size as at September 30, 2020

Number of Grouping by Amount Amount GoU Contribution projects (UGX) (UGX)

0-20,000,000* 2,947,170,990 1,698,885,495 195 20,000,001-50,000,000 5,208,535,618 2,975,621,009 126 552 50,000,001-100,000,000 18,908,321,999 10,755,199,552 231

100,000,001-300,000,000 40,541,418,699 21,777,456,819 215 300,000,001-above 550,397,668,866 276,082,194,793 224 439 Total 602,751,716,672 305,503,857,918 991 Source: Bank of Uganda * Includes borrowers under the block allocation

From Table 5 above, 552 projects or 55.70% of the projects financed under the Scheme had loan amounts ranging between UGX 10 million and UGX 100 million. One hundred and eighty six (186) micro loans disbursed with loan amounts of up to UGX 20 million, were submitted by PBUL, DFCU & Pride Microfinance under the Block Allocation arrangement.

The introduction of Block allocation under the current MoA (2018), allows the PFIs to consider extending loans of up to UGX 20 million to farmers with alternative collateral arrangements; such as chattel mortgages, cashflow based financing, character based loans, among others. This is intended to unlock credit to the micro and smallholder farmers who are unable to access funding due to the stringent traditional collateral requirements by the PFIs. By the end of September 30, 2020, UGX 2.82 billion had been allocated to 168 small and micro borrowers under the block allocation.

Bank of Uganda ACF Progress Report as at September 30, 2020 10

Figure 7: Enhancing Floriculture Farming for Export- Mpigi district

Source: Bank of Uganda

Figure 8: Modern Poultry Farming in Lira District

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 11

6 Working Capital for Grain

The Government of Uganda introduced the Grain facility under the ACF in November 2015 to address the drastic fall in maize prices following the bumper harvest. The facility provided working capital for grain trade to facilitate mopping up of the excess grain by the grain traders. Disbursements amounting to UGX 174.92 billion were made to 125 eligible borrowers to purchase grain, out of which GoU contribution amounted to UGX 87.47 billion. Eleven (11) loans amounting to UGX 61.59 billion were approved and funds committed pending submission of proof of disbursement by the PFIs for BoU to effect the reimbursement of UGX 30.79 billion. The total utilisation for grain trade under the ACF amounted to UGX 236.51 billion as at September 30, 2020 with the GoU contribution amounting to UGX 118.26 billion. In addition, fifteen (15) applications totalling UGX 72.50 billion were in the pipeline under review by BoU of which GoU contribution accounted for UGX 36.25 billion. These will be refinanced once the pending additional information from the respective PFIs is submitted. Table 6 below highlights the performance of the Grain Facility under the Scheme.

Table 6: Grain Facility (GF) Performance Cumulative as at September 30, 2020

No of Details Total Loan Amount GoU contribution 50% Projects UGX UGX Loans Disbursed 125 174,919,186,812 87,467,593,406 Amount committed 11 61,592,540,052 30,796,270,026 Total fund utilization 136 236,511,726,864 118,263,863,432 Pipeline applications (under review at BoU) 15 72,501,600,000 36,250,800,000 Grand Total Under the GF 151 309,013,326,864 154,514,663,432 Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 12

Figure 9: Modern Storage Facilities spread Countrywide

Source: Bank of Uganda

Figure 10: Financing Grain for Export

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 13

7 Repayments and Outstanding ACF Balances

PFIs are billed bi-annually in June and December and only remit funds realized in cash from borrowers. Given that the ACF is a risk sharing Scheme, GoU contributes 50% to the farmer loans submitted through Commercial banks and UDBL; and 70% to loans submitted through MDIs and CIs. The PFIs are expected to repay to BoU only the principal as per the provisions of the MoA (2018). Recoveries or reflows are used to fund new loan requests from other eligible borrowers considering that the ACF is a revolving Scheme.

As at September 30, 2020 a total of UGX 141.98 billion or 53.14% of the GoU contribution amount refinanced had been repaid by the PFIs. An amount of UGX 2.69 billion was in arrears for the quarter ended September 30, 2020. The Status of repayments as at September 30, 2020 is illustrated in Table 7 below;

Table 7: Cumulative PFI repayments, outstanding balances, Remittances as at September 30, 2020

GOU CUMULATIVE OUTSTANDING REMITTANCES CUMULATIVE ARREARS AS PFI AMOUNT BALANCES FOR THE REPAYMENTS AT SEPT 30 DISBURSED (GoU) QUARTER ENDED SEPT 20 (UGX) (UGX) (UGX) (UGX) (UGX) BOA 5,262,500,000 5,072,500,000 190,000,000 - - BOB 29,551,264,056 19,327,572,743 10,223,691,313 - 196,000,000 Absa/BBU 4,927,616,557 640,924,183 4,286,692,374 - 29,125,315 CERUDEB 9,670,090,565 3,601,075,871 6,069,014,694 - 663,978,256 CBL 1,040,000,000 1,040,000,000 - - - DFCU 65,069,512,548 27,330,104,902 37,739,407,646 320,034,807 447,087,078 DTB 1,650,000,000 1,325,000,000 325,000,000 - - EBUL 5,477,623,256 705,667,664 4,771,955,592 351,609,875 525,439,974 GTB 15,000,000 15,000,000 - - - HFB 6,352,161,183 4,206,106,523 2,146,054,660 - 17,815,847 KCB 2,506,770,000 1,409,501,429 1,097,268,571 - OBUL 5,719,536,800 2,237,452,775 3,482,084,025 569,042,411 254,641,974 OBL 949,300,000 949,300,000 - - - PBU 21,534,903,617 10,010,711,330 11,524,192,287 1,721,029,711 149,333,000 Pride 90,000,000 11,500,000 78,500,000 11,500,000 35,500,000 SBU 65,798,453,696 35,955,397,562 29,843,056,134 - 352,682,936 SCB 2,500,000,000 2,500,000,000 - - - TBL 8,350,000,000 6,044,444,445 2,305,555,555 27,777,778 - TFBL 280,000,000 34,940,948 245,059,052 - - FTB 396,000,000 25,013,526 370,986,474 - 22,236,475 UDBL 30,057,630,603 19,542,528,714 10,515,101,889 1,403,305,311 - Total 267,198,362,881 141,984,742,615 125,213,620,266 4,404,299,893 2,693,840,855 Source: Bank of Uganda *Defunct PFIs **Note that disbursements have been financed by transfers to the Capital account as well as reflows/loan repayments by the PFIs. *** Arrears refer to the GoU Contribution portion of the loan due but not remitted to BoU by the PFI.

Bank of Uganda ACF Progress Report as at September 30, 2020 14

8 Non-Performing Loans under ACF

ACF is a risk sharing facility between GoU and PFIs and the Scheme offers a partial credit guarantee in the event of loss. Effectively, GoU undertakes to write off the outstanding Government contribution and to bear up to 50 percent of the outstanding principal loan amount in the event of default. As at September 30, 2020, Twenty Four (24) projects with outstanding GoU contribution totalling UGX 5.82 billion had been declared delinquent by the respective PFIs. This represents 2.21 percent of the total GoU contribution refinanced to the PFIs. Seven (7) of these projects were verified by the Auditor General of which one (1) disbursed by DFCU Bank, with an outstanding balance of UGX 18.52 million was recommended for write off and is still awaiting approval by Parliament in line with the Public Finance Management Act (PFMA) 2015. Continuous recovery measures were recommended for the rest of the delinquent loans. During the quarter under review, UGX 650 million was recovered from Formular Feeds (U) Ltd and Pearl Mixed Farm Ltd under KCB Bank (U) Ltd. The status of non-performing loans is highlighted in Table 8 below;

Table 8: Non-Performing Loans as at September 30, 2020

NUMBER OF GOU CONTRIBUTION GOU CONTRIBUTION Outstanding GoU PFI DELINQUENT DISBURSED TO THE REPAID BY PFI contribution PROJECTS PFI

(UGX) (UGX) (UGX) KCB 2 1,915,520,000 858,251,429 1,057,268,571 BOA 2 375,000,000 185,000,000 190,000,000 CERUDEB 3 117,716,393 43,199,978 74,516,415 DFCU 7 4,356,484,741 1,299,032,854 3,057,451,887 EQUITY 1 481,335,000 - 481,335,000 SBU 7 1,080,330,430 330,772,669 749,557,761 OBUL 2 295,400,000 83,630,894 211,769,106 Total 24 8,621,786,564 2,799,887,824 5,821,898,740 Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 15

9 Performance during the Quarter

During the quarter ended September 30, 2020, the total loan portfolio disbursed grew by UGX 5.58 billion or 1.07 percent from UGX 520.42 billion to UGX 525.99 billion; of which UGX 267.19 billion was the GoU contribution. Seventy-Four (74) loan applications worth UGX 16.98 billion were received, up from thirty eight (38) applications worth UGX 12.10 billion received during the previous quarter. In addition, there was an increase in loan value by UGX 4.88 billion or 40.4 percent during the quarter.This was largely attributed to the increased investment in agricultural production considering that other sectors were grossly affected by the Covid-19 pandemic; and the PFI willingness to extend credit to SMEs business with loan values ranging on average between UGX 50 million – UGX 350 million.

Refinanced projects were forty one (41) accounting for UGX 5.58 billion of which GoU contribution was UGX 3.23 billion. In addition, there was an increase in committed funds to UGX 46.09 billion from UGX 41.54 billion for quarter ending June 2020; accounting for UGX 4.55 billion or 10.97 percent; due to the delayed fulfilment of the pre-disbursement requirements by PFIs.

Recoveries amounted to UGX 4.40 billion as at September 30, 2020 hence reducing arrears from UGX 5.69 billion in June 2020 to UGX 2.69 billion by September 30, 2020; while the value and number of loans recommended for write-off remained unchanged at UGX 5.82 billion and 24 loans respectively. A summary of the quarterly performance is highlighted in Table 9 below;

Table 9: ACF Scheme Quarterly Performance Figures in UGX

Particulars 31-Dec-19 31-Mar-20 30-June-20 30-Sep-20 UGX UGX UGX UGX Total Loan Portfolio-UGX (Disbursed) 408,623,581,891 455,235,508,700 520,416,946,602 525,997,126,602 Cumulative GOU Contribution (UGX) 207,031,690,525 231,376,753,930 263,967,472,881 267,198,362,881 Number of Loan Applications Received 59 46 38 74 Value of New Loan applications (UGX) 39,842,876,740 51,826,002,000 12,101,000,000 16,984,600,000 Number of Loans Disbursed 46 73 31 41 Total Value of Loan Disbursements (UGX) 42,788,028,914 46,611,926,809 65,181,437,902 5,580,180,000 GoU Contribution - Loan Disbursements 21,728,414,457 24,345,063,405 32,590,718,951 3,230,890,000 Committed Funds 71,319,707,700 61,560,420,607 41,536,385,036 46,090,994,786 Repayments - GOU Contribution 8,412,152,484 8,434,741,544 5,209,895,570 4,404,299,893 Amount in Arrears (GOU Contribution) 8,180,713,226 2,357,684,307 5,694,835,437 2,693,840,855 Number of Delinquent Loans 15 14 24 24 Value of Delinquent loans (UGX) 2,903,164,929 2,879,510,429 5,821,898,740 5,821,898,740 Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 16

Figure 11: Promoting mechanisation; Milk Processing Plant in Wakiso District

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 17

10 Impact of COVID-19 on loans advanced under the ACF

As mentioned earlier, the outbreak of the Covid-19 pandemic has affected major sectors of the economy and agriculture has not been spared. Therefore, in order to ensure credit availability to viable enterprises and to address the issue of credit facilities that may be at risk of going into distress as a result of the pandemic, Bank of Uganda issued guidelines to all Supervised Financial Institutions (SFIs) on Credit Relief and Loan Restructuring measures. The guidelines permitted SFIs to restructure loan facilities granted prior to April 01, 2020 for a period of up to 12 months. Following this pronouncement, a number of loan facilities under the ACF have been restructured which ultimately impacted on expected recoveries as at September 30, 2020. The table below highlights status of ACF loans that have been restructured during the quarter;

Table 10: ACF restructured loans as at 30th September 2020 in UGX

PFI No of Projects Outstanding Loan Amount - GoU Contribution (UGX) Post Bank 43 5,848,466,947 Housing Finance Bank 7 373,250,000 Centenary Bank 6 1,487,621,698 Top Finance Bank 2 245,059,052 Finance Trust Bank 2 321,000,000 Equity Bank 5 1,809,339,095 Absa Bank 2 1,213,333,333 DFCU Bank 12 10,220,928,786 Pride Microfinance 4 56,000,000 Grand Total 83 21,574,998,911 Source: Bank of Uganda

Figure 12: Promoting mechanisation for SMEs

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 18

11 Marketing and Publicity of the Scheme

In October 2019, BoU contracted NOMAD Advertising Limited to Provide Consultancy Services and implement the Agricultural Credit Facility Marketing Strategy in all the five (5) regions of the country. The publicity materials - a deliverable from the contract, were presented for approval and the pretesting exercise was undertaken in Kampala, Mukono, Lira and districts. NOMAD was unable to conduct the Training of Trainers workshops and media buy-in due to challenges presented by the COVID -19 lockdown and has since put the pending activities on halt. However, BoU in conjunction with the Consultancy Firm is in the process of carrying out a publicity drive aimed at increasing the uptake of the ACF in the Northern and Eastern regions of the country.

In line with the ACF Annual Work plan for FY2019/2020 and Marketing Strategy, the BoU-ACF team previously undertook a series of awareness activities, pre-covid and during the lockdown; that included radio and television talk-shows, stakeholder engagements such as conferences, workshops and farm clinics; among others. Details of the publicity activities undertaken in the FY2019/2020 are listed in Table 11 below and Appendix 2.

Table 11: Marketing activities undertaken in the FY2019/2020

ACTIVITY DATE Radio talk shows

Buddu FM, Masaka Aug 19, 2019 Voice of Kigezi, Kabaale Aug 20, 2019 South Rwenzori Messiah Radio, Kasese Aug 22, 2019 Radio One Ltd, Kampala Aug, 22 2019 CBS FM, Kampala Aug 23, 2019 Radio Two Ltd, Kampala Aug 23, 2019 Radio Bugwere, Kamuli Aug 28, 2019 Basoga Baino FM, Jinja Aug 29, 2019 NBS Kodh'eyo, Jinja Aug 29, 2019 Mighty Fire FM, Kitgum Sept 02, 2019 Radio Amani LTD, Ajumani Sept 04, 2019 Radio Pacis, Lira Sept 04, 2019 Messiah Radio, Kasese Nov 13, 2019 Etop FM - Nov 21, 2019 KFM Radio talk show July 4, 2020 Television Talk Shows Bukedde TV talk show - Akabbinkano Sept 17, 2019 Spark TV Breakfast show Sept 8, 2019 NTV virtual Breakfast show April 29, 2020

Print Media Engagements advert July 04, 2019 Bukedde TV live talkshow Aug 26, 2019 Africa Broadcasting(U) Ltd telecast advert Sept 25, 2019 Monitor Publications advert Sept 09, 2019 Observer Media Ltd advert Sept 11, 2019 The Farmer Magazine-article Oct 4, 2019 Manifesto Review Handbook article Jun 24, 2020 Business Information Directory, E.A Edition 2020 - Article July, 2020 Other stakeholder Engagements

Bank of Uganda ACF Progress Report as at September 30, 2020 19

Launching the Agricultural Year Book July 11, 2019 Annual Source of the Nile Agricultural Show July 12, 2019 Uganda-Germany Investment Symposium (West Nile and Gulu) Aug 6, 2019 West Nile Investment Symposium Aug 8-9, 2019 ACTIVITY DATE Stakeholders Engagements Contd. NOMAD Co-creation Workshop Aug 8-9, 2019 Seeds of Gold Farm Clinic Aug 10, 2019 NOMAD Consultancy Services 1st Tranche Sept 03, 2019 Masaka Seeds of Gold Farm Clinic Sept 07, 2019 Tax Payer’s Appreciation Week Sept 25-27, 2019 Rotary Club of Kampala- Farmer Sensitization Oct 8, 2019 Mukono Seeds of Gold Farm Clinic Oct 11, 2019 Lugogo International Trade Fair Oct 28, 2019 Rotary Club of Farmer Sensitization Oct 28, 2019 Lira Seeds of Farm Clinic Nov 11, 2019 Seeds of Gold Farm Clinic Dec 2, 2019 Uganda Warehouse Receipt System Authority site vists to grain traders Dec 10, 2019 Annual Exporter’s Conference Jan 22, 2020 Linza Farm Workshop - Wakiso Jan 25, 2020 Annual Harvest Money Agricultural Expo - Namboole Feb 14-16, 2020 EA Crude oil Pipeline Districts Conference Feb 28, 2020 Agri-Business Alliance Youth Forum Feb 27-28, 2020 CTI Africa Model Farm March 6, 2020 ABIVisit stakeholder - Buyikwe ForumDistrict March 7, 2020 Oil and Gas Conference 2020 March 17, 2020 AFRACA Virtual Meeting 02-04th June 2020 June 02-04,2020 ABSA Virtual workshop August 20,2020

Since inception, the Scheme has received a total of UGX 1,800,586,800 from MoFPED to undertake marketing and publicity of the Scheme. Total expenditures for activities undertaken as at September 30, 2020 amounted to UGX 845.65 million and the balance on the MoFPED funded ACF Operations account was UGX 954.94 million. The funds will be utilized to cover the ongoing activities by NOMAD Advertising Limited and planned activities in the ACF Marketing plan for the FY2020/2021. A breakdown of the marketing funds utilization is detailed in Table 12 below.

Table 12: Utilization of the MoFPED Marketing funds as September 30, 2020

MOF Expenditure Particulars/Activity UGX Total Source of funds for ACF Marketing 1,800,586,800 Workshops/Seminars/Exhibitions 529,434,378 Adverts in Media-Tv, Radio, Print 282,499,572 Printing Awareness Raising Material 15,426,988 Tv & Radio Broadcasts 18,290,000 Total utilization 845,650,938 Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 20

12 Major Challenges

i. Inadequate Capitalisation

The borrowers’ projects under the ACF have been refinanced by the GoU contribution and the reflows made via PFI repayments. These reflows provide a buffer for onward lending to viable projects, albeit on a half yearly basis. Table 13 below highlights the ACF Fund position as at September 30, 2020 with a deficit of UGX 65.14 billion.

As at September 30, 2020, cumulative GoU recapitalization amounted to UGX 153.56 billion [including UGX 1.8 billion funds for publicity], reflows amounted to UGX 141.98 billion, of which UGX 267.19 billion has been disbursed while cummulative commitments totalled UGX 46.09 billion; resulting in a cash deficit of UGX 17.74 billion. Details of the ACF cashflows are summarized in the table below:

Table 13: ACF Cash Flow Position - September 30, 2020

Details Amount(UGX) Transfer from the Escrow Account to ACF Capital Account 153,563,913,0488 Add: Total repayments from PFIs to date (reflows) 141,984,742,615 Less: Disbursements to date (267,198,362,881) Actual Cash Available (Fund Balance) 28,350,292,782 Less: Total BoU Commitments (46,090,994,786) Cash Deficit at September 30, 2020 (17,740,702,004) Less: Pipeline at BoU (47,395,433,678) Cash Deficit (65,136,135,682) Source: Bank of Uganda

The situation depicted above in Table 13 above calls for urgent recapitalisation of the Scheme in order to eliminate the total Cash Deficit of UGX 65.14 billion and to support the ACF continued drive in addressing a major impediment of access to long term agricultural finance at concessionary terms in Uganda.

ii. Covid-19 Impact

The prevalent COVID-19 pandemic had significant negative impact on agricultural production and agri- businesses which resulted in low production levels, reduced savings and business cashflows; that disrupted the ability of several borrowers to service their loan facilities. Following the issuance of guidelines by BoU to all Supervised Financial Institutions (SFIs) on Credit Relief and Loan Restructuring measures; a total of 83 loans have been restructured amounting to UGX 21.57 billion, which ultimately impacted on expected recoveries as at September 30, 2020.

Bank of Uganda ACF Progress Report as at September 30, 2020 21

13 Way Forward

In order to improve access and use of the ACF, the following recommendations are made among others:

i. Urgent Recapitalisation of the Scheme to refinance projects in the pipeline and additional applications for refinance. ii. Establish a Legal framework for credit guarantees to enable speedy processing of claims. iii. Design a Strategy for tier-4 institutions to access medium and long term finance available under the ACF after addressing the issue of recapitalization. iv. De-risk the agricultural sector with agriculture insurance in order to encourage the private lenders to increase lending to agricultural value chains. v. Provide for a holistic set of support mechanisms dealing with the entire production and value chains from land rights, quality control, timely provision of inputs, information and extension services to post harvest handling and market linkages. vi. Enhance capacity building and skilling in agribusiness lending for staff of the PFIs with focus on value chain risk analysis, appraisal of agricultural loans and loan management. vii. Improve the financial literacy of the small holder farmer especially in the area of records management and business proposal writing. viii. Given the Covid-19 new normal innovations, encourage farmers and other stakeholders in the agricultural value chains to adopt new measures of digital technology through which they can conduct their businesses and minimise losses in production and returns. Such measures include digital information access via virtual platforms, e-payment systems to reduce risks in lending, e- commerce platforms to increase access to a more diversified range of buyers and sellers, and warehouse receipt system for quick access to investment capital.

Bank of Uganda ACF Progress Report as at September 30, 2020 22

14 Conclusion

The ACF has continued to provide the much needed financing to the agricultural sector; in spite of the COVID-19 pandemic effects as well as limited funding. The Scheme has demonstrated to be a well performing key driver of medium to long term agriculture finance in the country with an NPL of 2.21 percent. By September 30, 2020, the ACF loan portfolio held 813 agriculture projects worth UGX 525.99 billion financing agricultural value chains in primary agriculture production, agro-businesses and the grain trade; in line with the commercialisation, modernization and agri-led industrialisation in Uganda.

Notwithstanding the capitalization status and the effects of Covid-19, the ACF maintained its prominence as a recognized distribution model in partnership with PFIs; well positioned to supply medium to long term financing to agricultural value chains in the agricultural sector at more affordable terms to farmers and agro-processors. Improvement in operational efficiency has attracted a rating of 85.23 percent for the ACF from the Budget Monitoring and Accountability Unit of the MoFPED in their FY 2019/20 Agricultural Sector Semi- Annual Budget Monitoring Report making the Scheme one of the best performing Government funded programmes with steadily increasing absorption capacity and a proven track record in efficient provision of medium to long term finance for agricultural value chains.

Bank of Uganda ACF Progress Report as at September 30, 2020 23

Appendix 1 Salient Features of the ACF Scheme

1 The Role of BOU The key role of BOU under the ACF is that of the administrator.

The responsibilities include:

i. Review of the loan applications against the terms and conditions of the Scheme in accordance with the MoA.

ii. Disburse funds (refinance) to the PFIs in respect of the eligible projects.

iii. Ensure timely collection of repayments from PFIs and a sound database on the lending activities.

iv. Provide reports and other information to the Stakeholders of the Scheme.

v. Ensure repayments of the GoU contribution from the PFIs which are made on a half-yearly basis.

2 Role of the PFIs The PFIs are charged with:

i. Sensitising the clients on the Scheme since they are the first point of contact.

ii. Appraising/analysing the projects to ascertain eligibility, viability, feasibility.

iii. Managing collateral requirements.

iv. Ensuring the recovery of the loans. The MoA governing the administration of the Scheme place full responsibility of loan recovery on the PFIs.

v. PFIs submit reports (on the performance of the projects) to BOU on quarterly basis.

3 Procedure of Accessing the Fund All ACF loan applications are channelled through the PFIs. The PFIs analyse the loan requests as per their credit policy to ensure that only eligible projects are financed. The PFIs disburse their own funds to eligible projects and subsequently request for re-imbursement of the GoU contribution from BOU.

4 Terms and Conditions of Sub-Loans The terms and conditions of the Scheme are stated in the Memorandum of Agreement (2018). Sub-loan amounts are determined based on assessment and appraisal of project viability and genuine credit needs of the clients in accordance with the lending policy of the respective PFIs. The loans under the ACF are denominated in Uganda shillings.

Bank of Uganda ACF Progress Report as at September 30, 2020 24

5 Loan Amount The maximum loan amount to a single borrower is UGX 2.1 billion. However, this amount can be lifted on a case-by-case basis for eligible projects that add significant value to the Agricultural sector and the economy as a whole, as may be determined by the BOU upon justification by the PFI.

6 Loan Term The maximum loan period should not exceed eight (8) years and the minimum should be six (6) months.

7 Grace Period The grace period is up to a maximum of three (3) years.

8 Interest Rate The interest rate charged by the PFI to the final borrower under ACF I and III is capped at 10 percent per annum, whereas for ACF II and IV interest rate is capped at 12 percent. The PFIs are not required to pay interest on the GoU contribution reimbursed to them.

9 Facility Fees Facility fees charged by PFIs to eligible borrowers should not exceed 0.5 percent of the total loan amount. Legal documentation and registration costs are borne by the borrower.

10 Eligibility for Refinance/Sub Loans

10.1 Eligible Purposes Eligible purposes include activities such as commercialisation, modernisation, mechanisation and value addition in the agricultural sector at any stage of the agricultural value chain.

10.2 Eligible Projects Eligible projects include the acquisition of agricultural machinery and post-harvest handling equipment, storage facilities, agricultural inputs that include; pesticides and fertilizers, land opening, paddocking, biological assets that include; Banana suckers, fruit seedlings, chicks, piglets, cows and goats for restocking the farm, agro processing facilities, and any other agricultural and agro-processing related activities.

Working capital required for operating expenses is considered provided this component does not exceed 20% of the total project cost for each eligible borrower. These will include among others; wages for hired farm labour, overhead costs like utilities and installation costs, and hiring of specialized machinery for farming activities. The maximum loan amount to an eligible borrower for biological assets shall not exceed UGX 80 million.

The Scheme does not finance working capital for purchase of land, forestry, refinancing existing loan facilities and trading in agricultural commodities with the exception of grain.

Bank of Uganda ACF Progress Report as at September 30, 2020 25

11 Financing Grain trade The Scheme provides financing for Working capital and infrastructure for projects engaged in grain trading. The terms are as follows:

The maximum financeable amount to a single borrower is UGX 10 billion and the GoU contribution is 50 percent of the eligible amount for Commercial banks, MDIs, CIs and UDBL. However, this amount can be lifted on a case-by-case basis for eligible projects that add significant value to the Agricultural sector and the economy as a whole as may be determined by the BOU upon justification by the PFI.

The maximum tenure of a loan for working capital for an eligible project under the grain facility is twenty four (24) months from the date of disbursement to the borrower.

The maximum tenure of a loan for capital expenditure for an eligible project under the grain facility shall be eight (8) years from the date of disbursement to the borrower with a maximum grace period of three (3) years.

The applicable interest rate for loans advanced to finance working capital for grain trading under the Scheme shall be a maximum of 15% per annum.

The applicable interest rate for loans advanced to finance capital expenditure under the Scheme shall be a maximum of 12% per annum.

12 Major Achievements of the ACF:

The Scheme has achieved the following:

i. Extended Credit worth UGX 526 billion to 813 clients [incl. large aggregators with out growers’ schemes reaching approx. 15,000 micro & small holder farmers country wide] ii. Enhancing farmers and agro processors’ access to affordable credit facilities from PFIs [incl Micro loans up to UGX 20 Million; that do not require traditional collateral]. Alternative collateral arrangements are considered such as chattel mortgages, cash flow based financing; etc. iii. Promoting commercialization, mechanization and modernization of the agricultural sector. iv. Increasing value to agricultural projects resulting into import substitution of produce that attract better prices locally thus increasing farmers’ income in line with the BUBU National Policy. v. Boosting export promotion of agro-processed Ugandan made products as depicted in the Dairy, Tea and Grain milling Sectors; among others.

vi. Increased level of confidence in agricultural finance to PFIs resulting into increased lending to the agricultural sector.

vii. Improved agricultural productivity thus contributing to increased national food security. viii. Development of innovative financial products in agricultural finance & improved risk management tools by PFIs and development partners. Bank of Uganda ACF Progress Report as at September 30, 2020 26

ix. Increasing employment levels as more people are employed in commercial farms and other funded projects. A review of a Sample of 100 funded projects revealed employment generation and establishment of farmer linkages to markets totaling to 24,548 jobs and 209,482 rural farmers were linked to the market through the out-growers’ schemes of large aggregator projects financed under the ACF. x. Prompted Development partners to initiate guarantee packages and agricultural insurance to support financial institutions on-lend to high risk areas in the agricultural ecosystem.

xi. ACF has maintained its prominence as a proven distribution channel under a Public-Private- Partnership [PPP] approach; for medium to long term financing to value chains in the agricultural sector at more affordable terms.

Bank of Uganda ACF Progress Report as at September 30, 2020 27

Frequently Asked Q &A on ACF in key local languages

13 Runyankole/Rukiga

13.1 Agricultural Credit Facility (ACF) n’ikimanyisa ki? Ahabw’okwenda kumaraho oburemeezi bw’abahingi n’abariisa kuremererwa kwehisyaho esente z’okukozesa omumirimo yaabo, Gavumenti ya Uganda ekwataniise na za banka z’eby’obushubuzi , ebitongore ebirikubiika sente, ebitongore ebirikuguza sente, hamwe na Uganda Development Bank Limited (byona hamwe birikumanywa nk’ebitongore by’esente ebyejumbiremu, nibyo byatandikireho enkora y’okuguza abahingi n’abariisa esente omumwaka 2009, kugira ngu abarikukozesa obuhingi n’oburiisa nk’eky’obushubuzi aharurengo orwa rwagati kuhikiza kimwe aharurengo orwahaiguru babaase kugira amaani g’okwongyera omutindo ahamirimo yaabo. Esente eziri omunkora egi, niziruga omu Gavumenti ya Uganda, na za PFI ahakicwero ekibaikiriize.

13.2 Ekigyendererwa ekikuru ky’enkora ya ACF narishi enkora y’okuguza abahingi n’abariisa sente nikiiha? Ekigyendererwa kya ACF naingashi enkora y’okuguza abahingi n’abariisa esente n’okutunguura eby’obushubuzi omubuhingi n’oburiisa , barikuraba omukuheereza sente omu purogyekiti ezirikukozesa obuhingi n’oburiisa nk’eky’obushubuzi na munonga hariho ekigyendererwa ky’okwongyera omutindo hamwe n’okukuratira enkora ey’omurembe.

13.3 Nimihandaki eyorikurabamu okubaasa kutunga esnte z’kweguza kuruga omunkora ACF? Enkora y’okushaba esente z’okweguza yoona neeraba omu PFI naingashi ebitongore by’esente ebirikujunanizibwa ahakushwijuma rooni erikuba eshabirwe kurugirira ahabiragiro ebibaheirwe hamwe n’endagaano ya Minisiture y’eby’obuhingi erikukwata ahari za rooni ezirikuhebwa abahingi

,kugira ngu purogyekiti ezihikiriire zibe nizo zatunga sente.

13.4 Rooni z’eby’obuhingi n’oburiisa ziine mbaganisa ki kuruga aha rooni ezindi? Ebiragiro bya rooni ezirikuhebwa abahingi n’abariisa byanguhi kukira ebya rooni ezindi zoona kurugirira ahabwingi bwa senteezirikuhebwa, amagoba, obwire bw’okuzishashuriramu, emirimo erikukorwa esente ezo ,hamwe n’ebindi bingi.

13.5 Ebiragiro ebi ebyanguhi nibiiha? Omuhendo gwes’ente ez’orikweguza: Obwingi bw’esnte z’omuntu arikubaasa kweguza ezirikukirayo ahaiguru ni shiringi obutabarwa 2.1 eza Uganda kandi nizibaasa kweyongyeraho kurugirira ahakuhikiirira kwa purogyekiti ey’orikuba oine , erikwongyera omutindo ahaby’obuhingi hamwe n’entasya okutwariza hamwe.

Bank of Uganda ACF Progress Report as at September 30, 2020 28

Obwire obworikumara noshashura: Obwire oburikukirayo ahaiguru n’emyaka 8 kandi oburikukirayo ahansi n’emyezi 6. Rooni y’okushuubura ebyomire nogishashurira omumyaka 2

Amagoba: Amagoba agarikushabwa kurugira kimwe ahabitongore ebirikuguza sente, kuhika ahamuntu wahamuheru orikuzeeguza, nigahika ebicweka 12 ahari 100 buri mwaka. Amagoba aha sente z’okushubura ebyomire agarikukirayo ahaiguru n’ebicweka 15 ahari 100 buri mwaka.

Ebigyendererwa ebihikiriire: Haihi emirimo yoona omuby’obuhingi obwo harimu okugura ebyoma by’okukozesa omubuhingi, ebyokukozesa ahanyima y’okusharuura, , okushukyera, okuhunika nka; emibazi y’okufuuhirira obukooko hamwe n’orwezo, okutemuurura, okuzitira, embibo z’okubyara nk’emitumba, obusigo bw’emiti y’ebijuma, obwana bw’enkoko, obwana bw’empunu, ente n’embuzi by’okutunga, ebyoma by’okukozesa omukwongyera omutindo, okugura embibo y’enjuma, hamwe n’ebindi byona eby’okukozesibwa omubuhingi ebikwatiraine n’okwongyera omutindo.

Ebishare ebirikushashurwa waaza kutunga rooni: Ebishare ebirikushashurwa kasitoma yaaza kutunga rooni y’byobuhingi n’oburiisa narishi ACF, tibishemereire kuhingura 0.5 ahari 100 aha sente zoona ezarikweguza.

13.6 Hariho emirimo omubyobuhingi etarikushashurwa esente ez’omunkora ya ACF nainga ezabahingi nabatungi barikweguza? Enkora ya ACF naingashi esente ezi abahingi barikweguza tizirikukora: ahakugura eitaka, Okuhinga Emiti

Okushubura ebintu ebitari bimwe n’abimwe (Oihiremu okushubura ebihingwa ebyomire) hamwe nokushashura ezindi sente eziwayegurize kare.

13.7 Omuntu nabaasa kwegza sente ateine musingoogurikureebeka? Kasitoma nabaasa kweguza obukaikuru 20 ateine musingo kurugirira ahamuringo ogu banka erikumumanyamu. Banka ezimwe nizibaasa kushaba omusingo nk’ebitungwa ebitari itaka , kurugirira ahabihandiiko ebirikworeka enkora yaawe ey’enyima, hamwe n’ebindi.

13.8 Enkora ya ACF neheereza sente abahaingi n’abariisa ab’aharurengo rw’ahansi nainga abarikweguza esente nkye? Ego,enkora ya ACF neeguza sente abahingi n’abariisa boona , obwo otwariiremu naabo abari aharurengo rw’ahansi , aba rwagati hamwe naabo abari aharurengo rw’ahaiguru . Hariho ekicwero ekirikwingana akatabarwa 1.5 ekirikuhebwa ebitongore by’esente ebyetongoire bitari bya Gavumenti kugira ngu bigume nibiguza abarikwenda esente nkye omunkora ya ACF.

13.9 Omurimo gwa Banka ya Uganda enkuru niguuha omunkoa ya ACF? Banka ya Uganda enkuru, niyo erikureeberera esente z’okuguza abahingi n’abariisa ezirikumanywa nka Agricultural credit Facility (ACF) . Nejwekyera Gavumenti Ya Uganda omukushoronzya enkora egi.

Bank of Uganda ACF Progress Report as at September 30, 2020 29

13.10 Omuntu nabaasa kutunga rooni y’okukozesa omu by’obuhingi n’oburiisa arikuraba omu Banka ya Uganda enkuru? NGAAHA! Okushaba kwona okwesente eza ACF narishi ezateirweho kugira ngu abahingi n’abariisa bazeeguze kukozesa omumirimo yaabo , kushemereire kurabira omukitongore ky’esente eky’omuntu arikenda.

13.11 Ebitongore by’esente ebi omuntu arikubaasa kurabamu nibingahi? Ebitongore by’esente byona, ebirikugyendera ahabiragiro bya Banka ya Uganda enkuru hamwe na UDBL.

Figure:13 Financing Long horned cattle

14 Runyoro/Rutooro 14.1 Ekitongole kya Agricultural Credit Facility nikikwataho ki? Mu kwenda kugarukamu ebizibu ebiri mu kutunga sente entaito ez’ebyobulimi, gavumenti ya Uganda (GOU) obu nekoragana na bbanka, n’ebitongole ebindi ebya sente na Uganda Development Bank Limited ekatandikaho entegeka y’okuhereza abalimi amabanja (Agricultural Credit Facility Scheme) mu mwaka gwa 2009 kusagika abalimi abakulima eby’okuguza kumara akaire kaingiho hamu nabo abakumara obwire bwingi nukwo basobole kugobamu mu eki ekibarukukora. Ensimbi eziri mu mpereza enu niziruga mu Bbanka ya Uganda hamu n’ebitongole ebindi ebya sente ha bucweka cweka oburagainwe.

14.2 Ekigendererwa ekikuru ekya ACF nikiha? Ekigendererwa kyayo ekikuru nukwo kukuza kwiha sente muby’obulimi obu nibaraba mu kuhereza obuyambi bwa sente obwa haraho hamu n’obwa hara hali abo abali muby’obulimi hamu n’abakuhindura eby’obulimi bakakoramu ebintu bindi obu nibafaaho kufoora ebintu byaabo by’omuhendo, kubifoora by’omulembe/kukozesa ebyooma.

Bank of Uganda ACF Progress Report as at September 30, 2020 30

14.3 Osemeriire kukora ki kutungi ensimbi za ACF? Kwijuza ebipapura by’okutunga ibanja lya ACF nikukorwa mu bitongole bya sente ebiine obujunanizibwa bwoona obwokwikiriza okusaba kw’ibanja obukuraaba nikuhikiriza amateeka g’abo hamu n’okwikirranganiza kwa ACF nukwo abalimi abahikire nubo basobole kuhebwa ensimbi zinu.

14.4 Ibanja lya ACF lineho mbaganiza ki ha mabanja agandi? Amateeka g’amabanja ga ACF nigasoboka kandi amabanja niganguha kutungwa kukira agandi goona ha katale kusigikirra ha sente ezirukugabwa, amagoba, obwire ibanja lisemeriire kusasulirwamu, akaire akatairweho kukozesa sente nukwo osasule iraho, ebintu eby’ensimbi zisemeriire kukora hamu n’ebindi.

14.5 Mateeka ki ganu agakusoboka? Sente ez’ibanja: Ibanja erikumalirrayo ery’omwohoza asemeriire kutunga nubwo obuhumbi bubiri n’akakaikuru kamu baitu zinu nizisobora kwongerwaho kakuba kisangibwa ngu emirimo enu y’omugaso gw’amaani muby’obulimi neby’obugaiga bwa Uganda mu kutwaliza hamu.

Amateeka g’ibanja: Obwire obukumalirrayo kusasura ibanja myaka 8 kandi obutaito myezi 6. Obwire bw’okukozesa sente otakazisaswire myaka 3. Obuhereza hali abo abakutunda oburo rundi omugusa nibugarukira ha myaka 2.

Amagoba: Amagoba agatairweho ebitongole bya sente ha mwohoza owokumalirra nigagarukira ha bucweka 12 ha 100 buli mwaka. Baitu, amagoba ag’abalimi b’oburo n’omugusa nigagarukira ha bucweka 15 ha 100 buli mwaka

Emigaso eyehikire: Buli kintu kyona haihi mu bintu by’obulimi nk’okutunga ebyooma by’okulima, eby’okukozesa mu magesa, ebikufuhirra amaizi mu misiri, ebyokwahuramu ebikozesebwa nk’emibazi n’ebikuteekamu orweezo, eby’okutemesa emiti, ahokwahura ebisoro, ebikozesebwa ebindi nk’emikonde y’ebitooke, ensigo z’ebijuma, obukoko, obwana bw’empunu, ente hamu n’embuzi ez’okuteeka mu kiraaro, eby’okuhindura eby’obulimi kubifoora bintu bindi, kugura oburo n’omugusa hamu n’ebintu bindi byoona ebikukwatagana n’obulimi hamu n’okuhindura eby’obulimi.

Sente ez’obuhereza: Sente ez’obuhereza ezikusasurwa omwohoza hansi ya ACF tizisemeriire kuhingura mu 0.5% ey’ibanja lyoona.

14.6 Haroho ebintu bindi byoona muby’obulimi ebya ACF etakusasurra? Ekitongole kya ACF tikikusasurra kugura itaaka, kubyara emiti

Kutunda ebintu bindi byoona (kwihaho oburo hamu n’omugusa) n’okusasura amabanja agaikaireho (amabanja amabi)

14.7 Omuntu nasobora kutunga ibanja ataine ebyokumwemera?

Bank of Uganda ACF Progress Report as at September 30, 2020 31

Omuntu nasobora kutunga sente ezikuhika mu bukaikuru 20 ataine kyokumwemera kurugirra ha nkoragana ye na bbanka. Bbanka ezimu zisobora kwetaaga ebintu ebindi ebisobora kumwemera nk’ekintu kyoona ekyakusasurra mu bbanka ekisobora kwihwaho kikatwarwa, ensasura ye mu bbanka n’ebintu bindi.

14.8 ACF nesobora kuha ensimbi abohoza abaine sente ntaito? Ego, ACF neha sente abalimi ababuli mulingo nk’abalimi ab’ebintu bitaito, bingiho rundi bingi muno. Haroho sente ezikuhebwa ebitongole ebirukugaba sente ezikuhika mu kahumbi kamu n’obukaikuru ataano ezokuha abohoza abaine sente ntaito mu buhereza bunu.

14.9 Bbanka ya Uganda (BoU) nekora mulimo ki mu buhereza bwa ACF? Bbanka ya Uganda niyo erukurolerra sente zoona eza ACF. Nekora nk’omukwenda wa Gavumenti ya Uganda mu nkora y’obuhereza bunu.

14.10 Omuntu nasobora kutunga ibanja lya ACF obu naraba mu Bbanka ya Uganda? NANGWA! Okusaba kwona hansi ya ACF nikuraba mu bitongole bya sente eby’omwohoza acwamu kukozesa wenka.

14.11 Bitongole ki ebya sente eby’omuntu asobora kurabamu? Ebitongole byoona ebya sente ebikuhondera amateeka ga Bbanka ya Uganda hamu na UDBL.

Figure 14: Commercial agriculture for export

Source: Bank of Uganda

Bank of Uganda ACF Progress Report as at September 30, 2020 32

15 Kiswahili 15.1 Je, Taasis ya kutoa mikopo kwa wakulima (ACF) inahusuana na nini? Katika hali ya kutaka kupambana na changamoto ya ugumu wa kupat mikopo ya kilimo, Serikali ya Uganda ikishirikiana na mashirika ya Fedha kama Benki ya Uganda, Mashirika yanayokopesha pesa pamoja na Benki ya maendeleo Uganda yanayojulikana kama Mashirika tendaji ya Fedha yalianzisha Taasis ya kutoa mikopo ya kilimo (ACF) mnamo mwaka wa 2009 ilikusaidia wakulima wa kiwango cha kati na wenye mashamba makubwa na kuwawezesha kuzidisha wingi na mtindo w mazao yao. Pesa katika fuko hili hutolewa na Benki ya Uganda pamoja nay ale mashirika ya Fedha kwa riba inayoafikiwa.

15.2 Lengo kuu la Taasis ya kutoa mikopo (ACF) ni nini? Lengo kuu la Taasis ni kuendeleza kilimo cha biashara kwa kuwap wakulima mikopo ya muda mfupi na mrefu kwa miradi ya kilimo na vifaa vya kutengenezea bidhaa za kilimo wakitetea hasahasa kuongeza mtindo na kufanya kilimo cha kisasa kinacho pelekea wakulima kuwa wa kisasa kw kutumia mashine za kilimo.

15.3 Mtu anapataje Pesa kutoka kwenye Mfuko wa Taasis? Maombi yote ya kupata mikopo ya Taasis hupitia katika mashirika yanayohsika na Fedha yanayohusika kikamilifu kwa kutoa mikopo ikiuatilia sheria la Mikopo na Azma la Taasis ya kutoa mikopo (ACF) ilikuhakikisha kwamba miradi inayofaa ndiyo inayodhaminiwa.

15.4 Je, Kuna tofauti gani kati ya mikopo ya Taasis na ile inayotolewa na mashirika mengine? Jinsi mikopo ya Taasis inavyotolewa ni nafuu na rahisi kupata kuliko mikopo mingine kulingana na marsharti ysnsyohusu iddi ya mkopo, muda wa nyongeza kabla haujaanza kulipa deni, muda wa nyongeza unaoruhusiwa baada ya siku ya kudaiwa kupitana wingi wa shughuli zinazo fadhiliwa na taasis miongoni mwa nyingine.

15.5 Mashatri yenye kufaa ni yapi? Idadi ya mkopo: Upeo wa mkopo kwa mkopaji ni bilioni 2.1 lakini idadi hii inaweza kuongezw kulingana na ustahilifu wa mradi inayoongeza thamani kwenye sekta ya kilimo pamoja na jinsi itakavyo kuwa kwa jumla.

Muda wa mkopo: Upeo wa muda wa kulipia mkopo ni miaka 8 na kikomo cha chini ni miezi 6. Muda wa nyongeza unaoruhusia baada ya siku ya kudaiwa kupita ni miaka 3. Ya vifaa vinavyotumiwa katika biashara ya fanaka ni mpaka miaka 2.

Riba: Kiwango cha Riba inayotozwa na mashirika yanayokopesha fedha hadi kwa mkopaji ni asilimia 21% kwa mwaka. Walakin, kiwango kinachotozwa kwa vifaa vya nafaka ni mpaka asili mia kumi na tano (15%).

Bank of Uganda ACF Progress Report as at September 30, 2020 33

Azma stahiki: Karibu shughuli zote zinazofanyika kuongeza mtindo wa mazao mkiwemo kupata vifaa vya kilimo, vifaa vya nafaka, mitambo ya kunyunyizia maji shambani, kupanda nyasi za mifugo, ndizi nche, miche ya miti ya matunda, vifaranga, vitoto vya nguruwe, ng’ombe na mbuzi kwa kuongeza wingi wa mifugo, mitambo inayotumiwa kutengeneza vitu vinginevyo kutokana na mazao, ununuzi wa nafaka na kwa ajili ya kufanya shughuli yoyote inayohusiana na kilimo.

Ada ya Taasis: Ada ya Taasisi anayotozwa mteja wa taasis ya kutoa mikopo kwa kilimo ni asili mia 0.5% ya kiasi cha mkopo wote uliopewa.

15.6 Je, kuna shughuli nyingine zilizomo kwenye mkondo wa kilimo zinazopewa mikopo? Taasis haitoi mikopo kwa ajili ya : Ununuzi wa ardhi na kwa mtaji wa kupanda miti

Kujishughulusha katika biashara nyingine (isiyokuwa ya nafaka) na kutoa mkopo mwingine ili kulipia mkopo uliotwaliwa hapo awali.

15.7 Je, mtu aanawea kupata mkopo bila a kuwa na dhamana taslimu? Mteja anawea kupata mkopo wa hadi million 20 bila ya kuwa na dhamana nah ii inategemea jinsi mtu anavyohusiana na benki hasa katika kulipi mikopo iliyotangulia. Anaweza akahitaji dhamana ya vifaa vya nyumbani pia miongoni mwa nyingine,

15.8 Je, Wakopaji wa pesa ndogo ndogo wanahudumiwa? Ndiyo, Taasis ya kutoa mikopo inatoa mikopo kwa wakulima wa viwango vyote mkiwemo wale wadogo wadogo, wakima cha kati na wale wenye mashamba makubwa.Kuna fungu lililotengwa kando la hadi bilioni moja unusu zinazopewa mashirika ya fedha kwa ajili ya kukopesha wanaohita mikopo midogo midogo chini ya utaratibu uliopo,

15.9 Jukumu la benki ya Uganda in nini ndani ya taasis la kutoa mikopo ya kilimo? Benki ya Uganda ndiyo inayosimamia fungo la Taasis ya kutoa ikopo kwa kilimo inawakilisha serikali ya Uganda katika utekelezaji wa utaratibu huo

15.10 Je, mtu anaweza kupata mkopo wa Taasis ya kutoa mikopo akipitia mikopo ya Benki ya Uganda? La, Maombi yote ya Taasis yanapitishwa katika shirika la fedha analolipendelea mteja.

15.11 Mashirika ya fedha mtu anayoweza kuyatumia ni yapi? Mashirika yote ya kifedha yanayofuata taratibu za benki ya Uganda pamoja na Benki ya Maendeleo Uganda (UDBL).

Bank of Uganda ACF Progress Report as at September 30, 2020 34

Figure 15: Promoting Food security

Source: Bank of Uganda

16 English 16.1 What is the Agricultural Credit Facility (ACF) all about? In a bid to address the challenges of limited access to Agricultural finance, the Government of Uganda (GOU) in partnership with Commercial Banks, Micro Deposit-Taking Institutions (MDIs), Credit Institutions & Uganda Development Bank Limited (collectively known as Participating Financial Institutions (PFIs)) set up the Agricultural Credit Facility (Scheme) in the year 2009 to support the medium to long term scale commercial farmers and enhance capacity for value addition. The funds under the scheme are contributed by both the GoU and the PFIs at an agreed percentage.

16.2 What is the main objective of the ACF? The main objective of the ACF is to promote commercialization of Agriculture through provision of medium and long term financing to projects engaged in agriculture and agro processing focusing mainly on value addition, modernization / mechanization.

16.3 What is the procedure of accessing the ACF Fund?

Bank of Uganda ACF Progress Report as at September 30, 2020 35

All ACF loan applications are channelled through the PFIs which are fully responsible for the appraisal of the loan requests in line with their credit policy and the ACF Memorandum of Agreement (MoA) to ensure that only eligible projects are financed.

16.4 How are ACF Loans different from other loans? The loan terms under the ACF are more favorable than available on the market in terms of the Loan amount, interest rate, loan period, Grace Period, scope of activities financed among others.

16.5 What are these Favorable Terms? Loan Amount: The maximum loan amount to a single borrower is UGX 2.1 billion but this amount can be increased on a case by case basis for eligible projects that add significant value to the Agriculture sector and the economy as a whole.

Loan Term: Maximum loan period 8 years and the minimum is 6 months. The grace period is up to a maximum of 3 years. Facilities for the Grain trade are up to a maximum of 2 years.

Interest Rate: The interest rate charged by the PFI to the final borrower is capped at 12 percent per annum. However the interest rate for the Grain facility is up to a maximum of 15% per annum

Eligible purposes: Almost all activities under the Agricultural Value Chain that include; acquisition of agriculture machinery and equipment, post-harvest handling equipment, Irrigation system, storage facilities agricultural inputs such as; pesticides and fertilizers, land opening, paddocking, biological assets that include; Banana suckers, fruit seedlings, chicks, piglets, cows and goats for restocking the farm, agro processing facilities, purchase of Grain and any other agricultural and agro- processing related activities.

Facility Fees: Facility fees charged to the client under the ACF should not exceed 0.5% of the total loan amount.

16.6 Are there any activities along the Agricultural Value Chain that the ACF does not finance? The ACF does not finance: Purchase of Land, Planting of Trees

Trading in various activities (apart from the Grain Trade) and Refinancing other existing loan facilities(bad loans)

16.7 Can one get a loan without tangible Collateral? A client can get up to UGX 20 million without collateral depending on his /her relationship with the bank. Some banks may require alternative collateral like Chattel Mortgage, previous performance records, among other things

16.8 Does the ACF finance Small and Micro Borrowers?

Bank of Uganda ACF Progress Report as at September 30, 2020 36

Yes the ACF finances all categories of farmers that include small scale, medium and Large Scale Farmers. There is a Block Allocation of up to UGX 1.5 Billion that is given to the PFIs for on lending to the Micro borrowers under the scheme.

16.9 What is the role of Bank of Uganda (BoU) under the ACF? The Bank of Uganda is the Fund administrator of the ACF. It represents the GoU in the operations of the scheme.

16.10 Can one access the ACF Loan through BoU? NO! All applications under the ACF are channelled through a Financial Institution of one’s choice.

16.11 Which Financial Institutions can one go through? All the financial institutions regulated by the Bank of Uganda as well as UDBL

17. ACHOLI

LAPENY MA KI PENYO POL KARE

16.1 Lon me Pur (ACF) kwako ngo? Pi mito ni ocob peko me nwongo cente me pur, Gamente me Uganda (GOU) kun tio kede Benki me Biacara, Dulle ame Kano Cente (MDIs), Dulle ame Deno cente bot lwak kede Uganda Development Bank (ame gin ducu otye alwongo ni Participating Financial institutions (PFI) onyo Dulle me Lim ame oye tic Karacel obin okato kede yuba me Lon me Pur imwaka 2009 pi konyo opur ame tero kare abubor kede en atero kare abor i puro cem onyo gwoko leyi irwom me acata wek omed gupu kede rwom me jami opur gini. Gamente kede Dulle me Lim ame oye tic Karacel aye miyo pacen apapat me cente magi.

16.2 Tyen kop ango ame omiyo ACF tye? ACF tye pi tyen kop me medo loko pur doko biacara kun beo iyore me miyo cente pi kare aboco kede kare abor idyere dyere bot purujek ame tye ipur onyo gwoko leyi kede yubu jami aya ikom pur kede nenno me medo rwom, kede pur kun itio kede cuma apapat.

16.3. Yore ango ame myero ilub ka imito cente me ACF? Kwac me lon me Pur (ACF) ducu beo ibot Dulle me Lim ame oye tic Karacel (PFIs) dok gin aye tye kede twero me moko lon alubere kede cik gi me miyo lon karacel kede Cikere me Niang me ACF me neno ni purujek ame opore keken aye onwongo cente.

16.4 Lon me Pur (ACF) pokere kede lon okene ningo? Cik me lon ame tye ite (ACF) ber tutwal akato moro keken ame itwero nwongo icuk ka ineno wel lon, wel magoba, kare me culu lon, kare ame itero abongo cako cullu lon, kede jami adii ame itwero gamo lon pire kede en okene apol. 16.5 Cik amwonya magi obedo mene? Wel Lon: Wel lon amalu aloo ame dano acel twero deno obedo bilion 2.1 ento wel man otwero medo alubere kede purujek ame opore ka twero kelo alokaloka iguti me pur kede lim lobo wa alutu. Kare me cullu Lon: Mwaki 8 obedo mwaki adwong aloo eka dwete 6 obedo kare anok aloo, Bank of Uganda ACF Progress Report as at September 30, 2020 37

Kare me cako cullu lon adwong aloo obedo mwaki 3. Lon me cato biacara me nyig cem tye kede mwaki aromo naka 2. Wel magoba: Wel magoba ame Dulle me Lim ame oye tic Karacel (PFI) mio bot agam den omoko i pacen 12 pi mwaka acel. Ento, wel magoba ikom lon me gero wudi gwoko cem anyige tye otunu naka i pacen 15 pi mwaka acel. Tyen kop Ame Oye: Cocok jami atima ducu ame tye me medo rwom me cem opuro calo ba: wilo cuma me pur kede nyonyo okene, wilo jami konyo opur iyonge kac, jami kiro pii, wudi me gwoko cem, jami ame mite calo ba: yat kiiro kuddi kede patilija, yabo poto, gero wuddi leyi, jami akwo calo; tyen abolo me anaka, koti me tyen yen acama, otin gwen, otin punni, dok, dyegi, wilo cuma buku cem, wilo nyig cem kede kit ticcoro keken ame medo rwom acem ame opuro. Wel ame myero icul ka imito lon: Wel ame myero icul ka imito lon me ACF myero pe kat pacen 0.5 me wel lon ame igamo.

Figure 16: Rice growing in Amulu

Source: Bank of Uganda 2019

16.6. Tye tic me pur mogo ame ACF pe yee keto cente iye? ACF pe miyo cente me; Wilo Lobo, Pito Yen Kit cato wil moro keken (apat kede wilo nyig cem) kede cullu lon ame onwo odeno con (lon areco)

16.7 Dano twero nwongo lon abongo cekiriti ame makere? Kacitoma twero nwongo cente aromo milion 20 abongo cekiriti ame makere alubere kede wat ame tye ikine kede benki. Benki okene twero kwayi ni iter cekiriti mogo calo ba gin ame twero kobere, rikod alubu kit ame ibedo cullu kede lon okato, ikine jami okene.

Bank of Uganda ACF Progress Report as at September 30, 2020 38

16.8 ACF dang miyo cente bot joo adeno cente atitiino? Eyo, ACF miyo lon bot kwone opur ducu kadi bed ni puro poti atitiino, idyere-dyere onyo puro poti adongo. Tye cente ame omiyo aromo bilion 1.5 bot Dulle me Lim ame oye tic Karacel me wek mii lon bot opur atititiino.

16.9. Tic a Benki me Uganda ite yuba me ACF obedo ngo? Benki me Uganda aye loo kit ame cente me ACF otye atic kede. En aye obedo awang gamente me neno kit ame yuba man tye awot kede.

16.10 Dano twero gamo lon me ACF kun beo i Benki me Uganda? PE! Kwac me lon ducu ame tye ite ACF myero bee-ibot benki moro keken ame yin iyero.

16.11. Benki kede dulle me lim mene ame dano twero tickede? Dulle ame mako lim ducu ame tye ite Benki me Uganda karacel kede UDBL. The Executive

18.LUGBARA

18. ZITA ‘BANI OZILE TUTU ‘DIYI

18.1 Mari Amvu ‘yaza azini anyapa tambaza ni omvle geri alisi (ACF) ri a’du ma dria ya?

E’yo ewaru robia amvu ‘yaza azini anyapa tambaza ni capi ku ‘diyi aza kozu, Gamete Uganda driri eciti ero robia tambazu tujara dri ‘diyi pie, ongulumu robia were ‘bazu ‘diyi ‘dupi omvele geri alisi (MDI) ‘diyi, ongulumu mari ni ‘diyi azini amuti ero robia ma zota niri (tuwalu omvele ongulumu robia dri pari ‘dupi ‘diyi geri alisi (PFIs)) ‘diyi ‘ba ki otita Mari amvu ‘yaza azini anyapa tambaza niri eli 2009 si okpo aga vusi ri atizu erini cazu omgbo angiri ‘ba amvu ‘yapi vini anyapa tambapi tujara siri ru azini orodri ma omgbo otuzu. Robia otita ‘di ma alea ri eritro Gamete Uganda oku ongulumu omvele geri alisi ‘PFI’ dri be omgbo atile ra esele turu alu ma dria risi.

18.2 Asisile amboru ACF driri a’du ni ya? Asisile ambo ACF driri tujara amvu ‘yaza azini anyapa tambaza driri otuzu geriko agavusi azini robia feza otita azi ngazu saa ezuru amvu ‘yaza azini anyapa tambaza si azini afa amvua ‘diyi ma edeta si asisile tutuniri orodri o’baza, e’yo o’diru/ afa aya kaniku masini ru ‘diyi ma ayuta si

18.3 Geriko ‘bani robia ACF esuzu ri ngoni ya? Waraga woro ‘bani mari ACF dri ‘diyi fezu ri ‘ba eyi fe ongulumu PFI dri ‘diyi alea si ovupi azi mari aile ‘diyi ma ale yazu e’yo ru bipi azita mari ni ‘diyi be azini e’yo sile tiecima alea omvele geri alisi (MoA) ru rini ‘bazu adaru otita edele ecopira ‘diyi esu robia ra

18.4 Mari ACF dri ‘diyi ndundu mari azi ‘diyi beri ngoni ya? E’yo mari dri ACF ma alea ‘diyi muke fe nde aga cu alea ‘diyi ra weriko omgbo, robia o’bale drinia, saa mari ofeza, saa asianzu driri, omgbo robia fezu azi edele ‘diyi dri risi afa azi ‘diyi ma eselea

Bank of Uganda ACF Progress Report as at September 30, 2020 39

18.5 E’yo muke fepi ‘diyi ngoni ya? Ombgo Mari dri: Omgbo mari dri ndeni fele ‘ba alu aipiri ni ri robia bilioni UGX 2.1 te ‘ba omgbo ‘di ‘ba eco otuzu e’yo alu alu ri ma vusi otita edezaru ecopira orodri fepi kililiru esele amvu ‘yaza azini anyapa tambaza ni azini lonyi si woro ru. E’yo Mari dria ri: Saa ezu nde mari driri eli 8 azini saa were ndeni ri emba 6. Saa asianzu fezu angiri ndeniri eli 3. Afa anya tujara ni ‘diyi eyi tujara ni ndeni ria eli 2.

Omgbo robia o’bale drinia ri dri: Omgbo robia dri ongulumu omvele geri alisi PFI ri o‘bale ‘ba mari aipi asizu ri ma dria ri 12 eli alualu si. Tedi, omgbo robia o’bale afa anya niri kpere 15 esele turu alu ma dria

Asisile ecopira: Azi ‘yezuru pari orodri o’baza efupi afa amvua kaniku anyapa dri ‘diyi ma palea indi ‘diyi; aya kaniku masini amvu ‘yazu azini afa ayule ‘diyi esuta si, afa ayule oriamvua ri okuzu ‘bo ri ma vutia ri, geriko yi sezu amvua ri, pari afa amvu dri ‘diyi tambazu ri ekile; aro nzeya azini ori ma nyakaru ‘diyi, angu nziza, anyapa jo sile ale be alizaru ri, afa orodriru edri be alenia endi ‘diyi; a’bua ma mva eyi, pati nyaza aka be ‘diyi ma mva eyi, au anzi yi, ngurube anzi yi, ti yi azini endri tambazaru amvua, pari afa amvua ‘diyi edezu ‘diyi, anya jeza azini azi ru bipi amvu be azini afa amvua ‘diyi ma edeza pie ‘diyi. Fizi Pari driri: Fizi pari dri ‘bale ‘ba orodri azi driri esupi ri dri ACF ma palaa ri ma agaa esele 0.5 turualu ma dria omgbo mari driri woro ri ku.

18.6 Azi azi orodri amvu niri ma palaa ACF ni robia fezu ani ku ‘diyi ci ya? ACF fe robia Nyaku jeza, Pati saza ni ku Tujara ‘yele azi edele ndundu ‘diyi alea ‘diyi (pelu tujara anya veleri) azini robia fezu dika mari ofele ku (mari onzi ‘diyi) si ‘diyi

18.7 Ba azi eco mari esuzu ageitema kililiru ni kokoru ra ya? ‘Ba orodri azi niri esupiri eco robia Uganda driri esu kpere cazu milioni 20 ageitema kokoru agi erini ero robia tambazu ri driri ma wura vusi. Ero robia tambazu azi ‘diyi eco ageitema wura azi ekile afa komeru kaniku anyapa ru ‘diyi, e’yo mima dria oko ‘diyi, afa azi ‘diyi ma eselea

18.8 ACF ni robia fe ‘ba mari were azini were nyanya ‘diyi ni ra ya ? Ee, ACF ni robia fe ‘ba amvu ‘yapi wura ndundu ‘diyi ni woro alenia endiri omgbo were, aga vusi azini ambo ‘diyi. Robia ‘bani ‘bale woro ri robia Uganda dri bilioni 1.5 ‘bani fele ongulumu omvele geri alisi PFI ‘diyi ni robia fezu ‘ba aipi were nyanya ‘diyi ni otita nde ma palaa rini

18.9 Azi ero Ambo robia tambazu Uganda driri ACF ma palaa ri a’duni ya? Ero ambo robia tambazu Uganda driri eri robia ACF driri dri cezu. Sopa Gamete Uganda driri ma paria azi ngaza otita ‘di dri ma alea.

Bank of Uganda ACF Progress Report as at September 30, 2020 40

18.10 ‘Ba azi eco mari ACF driri esu geriko ero ambo robia Uganda driri tambapiri ma alea si ra ya? YO! Waraga afa aizu woro ACF ma palaa ‘diyi ‘ba eyi fe geriko ongulumu robia ni ‘ba alualu ni pele ri vusi. 18.11 Ongulumu robia ni ‘ba azi ni ecozu mu alenia siri ngoi ya?

Ongulumu robia ni woro ero ambo robia tambazu Uganda driri ni ocele ‘diyi ekile vini UDBL le ‘diyi

Bank of Uganda ACF Progress Report as at September 30, 2020 41