Business

‘Finance and markets are key to unlocking Uganda’s farming potential’

Smallholder farmers are central to Uganda’s agro-industrialisation agenda because they supply the raw materials that drive processing and value addition. Our role is to help them become more productive, organised and commercially connected.

Robert Anyang, Country Director of Sasakawa Africa Association Uganda
By: Admin ., Journalist @New Vision

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Robert Anyang, Country Director of Sasakawa Africa Association Uganda, speaks to New Vision about the barriers holding back smallholder farmers and the systems needed to turn them into profitable agripreneurs. Below are excerpts.

Q: Smallholder farmers remain central to Uganda’s food system. Why are many still struggling to become commercial farmers?

A: Smallholder farmers remain the backbone of Uganda’s food system, producing most of the country’s food and supporting millions of livelihoods. However, many operate below their potential because of limited access to affordable finance, quality inputs, extension services, mechanisation and reliable markets.

Many farmers produce without clear market linkages, making it difficult to generate consistent income and reinvest in their enterprises. Climate-related risks, post-harvest losses and weak farmer organisations further reduce profitability.

The answer is to strengthen farmer groups and cooperatives, promote climate-smart and regenerative agriculture, expand community-based extension services and link farmers to financial institutions and structured markets.

Q: Why does access to finance remain such a major challenge?

A: Agriculture is often perceived as a high-risk sector because of climate shocks, pests, diseases and fluctuating market prices. Most farmers lack the collateral, financial records and credit history required by formal financial institutions.

In addition, available loans may carry high interest rates and repayment terms that do not align with agricultural production cycles. Weak market linkages also make it difficult for lenders to be confident that farmers will generate sufficient returns to repay loans.

SAA does not directly provide finance. Instead, we act as a facilitator. We strengthen farmer organisations and aggregation models, improve farmers’ business and financial management skills, and link them to financial institutions, input suppliers, off-takers and other service providers.

By reducing the risks that prevent these actors from working together and fostering trust, we help create an environment where smallholder farmers can access finance and grow profitable agricultural enterprises.

Q: How are you positioning farmers to benefit from growing markets and the Government’s agro-processing agenda?

A: Farmers can only benefit if they shift from producing for subsistence to producing consistently for markets, meeting quality standards and responding to consumer demand.

We are strengthening farmer groups, cooperatives and One Stop Centre Associations as local business hubs where farmers can access extension services, quality inputs, mechanisation, aggregation, financial services, business development and market linkages.

Smallholder farmers are central to Uganda’s agro-industrialisation agenda because they supply the raw materials that drive processing and value addition. Our role is to help them become more productive, organised and commercially connected.

Q: Climate change is making farming increasingly difficult. What is SAA doing to help farmers adapt?

A: Climate change is increasing the frequency of droughts, floods, pests and soil degradation. We support farmers through improved seed, soil and water conservation, agroforestry, integrated soil fertility management, water harvesting and other climate-resilient practices.

We have supported Climate-Smart Villages in Nakaseke and other areas as practical learning hubs where farmers can test and adopt technologies.

One of the key lessons is that climate-smart agriculture is most effective when combined with strong farmer organisations, access to markets and sustainable service delivery systems.

Through our Commercial Community-Based Facilitator model, farmers receive continuous coaching and technical support close to their communities.

Q: What about post-harvest losses and aflatoxin contamination?

A: Poor post-harvest handling remains a significant challenge, reducing food quality, threatening public health and limiting farmers’ access to premium markets.

We train farmers in proper harvesting, drying, sorting, grading, storage and safe handling. We also promote tarpaulins, moisture meters, hermetic storage bags, improved stores and aggregation centres.

Quality assurance must be a shared responsibility across the entire value chain. By reducing contamination and losses, farmers can access better markets, increase incomes and ensure safer food for consumers.

Q: What is your vision for the future of agriculture in Uganda?

A: Lasting impact cannot be achieved by working with farmers alone. We must strengthen every ecosystem actor - from research institutions and extension providers to seed companies, financial institutions, processors, traders, cooperatives, government agencies and development partners.

The future of Uganda’s agriculture lies not only in producing more, but in building resilient, inclusive and competitive agri-food systems that create value for farmers, businesses and communities.

By scaling innovation and strengthening ecosystem partnerships, we can create lasting impact that benefits farmers, businesses, communities and future generations.

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Robert Anyang
Sasakawa Africa Association Uganda