PostBank Uganda has recorded a 24% growth in its agribusiness loan book between 2023 and 2024, reflecting the bank’s robust commitment to transforming Uganda’s agricultural sector.
This growth is a testament to the success of PostBank’s strategic shift toward value chain financing and risk management in agricultural lending. By recognizing agriculture as a complex ecosystem rather than just a production process, PostBank has positioned itself as a key partner in the sector’s transformation. This new approach supports not only large-scale commercial farmers but also smallholder farmers engaged in critical value chains such as dairy, poultry, and coffee.
Key to this transformation is the government’s Agriculture Credit Facility, which has been instrumental in mitigating risks associated with farming. Through this program, PostBank offers loans at reduced interest rates, with the government sharing 50% of the associated risks. The government’s role in subsidizing interest payments for qualifying farmers further strengthens the financial foundation for agribusiness growth.
PostBank’s increased focus on supporting specific value chains, including maize, beans, soya beans, sorghum, and hay, has proven to be a successful strategy, further solidifying its position as a leader in agricultural financing. The bank’s active involvement in the agricultural development process includes regular field visits, technical support, and staged funding, making it more than just a lender but a key partner in ensuring long-term success for Ugandan farmers.
According to Julius Akais, PostBank’s Supervisor, Agriculture and Partnerships, the growth comes amid a broader push to promote food security, rural development, and commercial farming in Uganda. With 70% of the population engaged in agriculture, PostBank’s efforts are expected to have a transformative impact on the country’s economy, creating new opportunities for economic growth and job creation in rural communities, which aligns with our purpose of fostering prosperity for Ugandans.
As PostBank continues to grow its agricultural portfolio, it remains focused on sustainability, evaluating loans not just for financial returns but also for their broader impact on the environment and society. The bank’s approach is set to continue driving the transformation of Uganda’s agricultural landscape, fostering prosperity for farmers and the economy alike.
