Credit access for Ugandan farmers rises with fintech
The Agricultural Credit Facility (ACF) has disbursed more than Ush800 billion ($221 million) loans to various agricultural sector borrowers since 2012.
Even as questions swirl over the real impact of increased documentation on Ugandan farmers’ ability to secure loans from banks, financial technology firms have continued to invest in the sector, ushering in easier access to credit and higher production levels.
Unstable weather patterns, fluctuating commodity prices, inadequate documentation among local farmers, low literacy levels evident in the farming community, and relatively high loan default rates have scared many financial institutions away from massive lending to the agricultural sector.
