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Social Enterprise announces Shs 66bn to enhance climate-smart agriculture

The Green Agrifood System Programme (GRASP) being unveiled

The Green Agrifood System Programme (GRASP) being unveiled

With climate change becoming a common phenomenon affecting farmers in Uganda today, the Agriculture Business Initiative (aBI), in partnership with the European Union and Denmark, has injected Shs 66.8bn in two programmes to help farmers directly benefit from resilient and smart agricultural programmes.

This announcement was made on May 2, 2024, at Speke Resort Munyoyo as aBI unveiled the Green Agrifood System Programme (GRASP) and Accelerating Adoption of Green and Inclusive Finance (AAGIF), which aim to empower smallholder farmers and promote sustainable agriculture.

This initiative will benefit over 2,000 farmers, be focused on building climate resilience in agriculture, and drive economic growth. The programmes developed by aBi Finance will focus on building the capacity for farmers and agribusiness to adapt to the negative consequences that are brought about by climate change, such as floods and drought, while enabling farmers to continue with their production activities.

The launch was a forerunner to the closeout of the successful project run by aBi Finance, the Uganda Programme for Sustainable and Inclusive Development of the Economy (UPSIDE), which started in 2019 and has supported over 200,000 farmers, 50% of whom are women, to achieve resilience to climate change through expanded and inclusive green agri-food systems.

Moses Nyabila, the aBi Development CEO, said the five-year programme will invest Shs 55.8bn to support farmers and agribusinesses in building capacity to adapt to climate change and continue productive activities.

Mona Muguma-Ssebuliba, the aBi Finance Ltd CEO, added that despite their efforts to empower the agricultural value chain in Uganda through loans, guarantees, and business development services in the last 15 years, the funding gap in the agricultural ecosystem remains significantly high, with a paltry 10% of Ugandan firms accessing loans.

“This new programme (Accelerating Adoption of Green and Inclusive Finance) will add a $11 billion investment to empower the often-overlooked segments of society. There is a strong and urgent need to support Uganda’s agriculture to increase productivity and adapt to and respond to climate change. Denmark is proud to continue more than ten years of support for Ugandan agriculture through aBi Finance and aBi Development. We are very happy to do this as a Team Europe Initiative in collaboration with the EU delegation.”

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