Kampala, Uganda – The agricultural sector, once the backbone of Uganda’s economy, is on the brink of collapse. A toxic cocktail of corruption, neglect, and greed has ravaged the industry, leaving farmers destitute and the country’s food security hanging by a thread.
At the heart of this agricultural apocalypse is a government that has turned a blind eye to the plight of farmers. Despite campaign promises to prioritize agriculture, the ruling party has instead chosen to rely heavily on foreign funds and commercial banks, leaving farmers with expensive and inaccessible loans.
Asinasi Nyakato, the Shadow Minister of Agriculture, has exposed the alarming truth that external financing for agriculture is set to skyrocket from UGX 929.26 billion to UGX 1.048 trillion in the 2025/26 National Budget, while government expenditure on agriculture plummets from UGX 1.135 trillion to UGX 640.06 billion.
“The lack of affordable credit options for farmers has severely impacted agricultural production,” Nyakato said. “The government’s reliance on foreign funds and commercial banks has left farmers with expensive loans that they cannot afford to repay.”
Nyakato also pointed out that the Uganda Development Bank (UDB), which is supposed to provide affordable credit to farmers, has failed to do so. Instead, the bank’s credit remains inaccessible to many farmers due to stringent requirements.
“The UDB is not serving its purpose,” Nyakato said. “We need to establish a dedicated Agriculture Bank that can provide affordable credit to farmers, tailored to their specific needs.”
The Agro-Industrialization Program, once hailed as a flagship program for agricultural development, is now facing a whopping UGX 375 billion budget cut. This move has sparked outrage among farmers and opposition leaders, who argue that it will further exacerbate the crisis in the agricultural sector.
As the agricultural sector teeters on the edge of collapse, the government remains in denial. But the numbers don’t lie. Uganda’s agricultural sector is in shambles, and it’s time for the government to take responsibility and act.
Will the government finally take action to save the sector, or will it continue to ignore the warning signs?
