KAMPALA — As government ramps up implementation of its Agriculture, Tourism, Minerals and Science & Technology (ATMS) strategy, financial institutions are increasingly being called upon to provide the capital needed to transform Uganda’s largely subsistence-based agricultural sector into a commercially competitive industry.
Among the lenders positioning themselves at the centre of that transition is Pearl Bank Uganda, which has expanded its financing of agricultural enterprises across the value chain, from production and processing to marketing and value addition.
Agriculture remains the backbone of Uganda’s economy, employing more than 70 percent of the population and contributing significantly to export earnings. However, access to affordable financing remains one of the sector’s biggest challenges, limiting investment in mechanisation, irrigation, post-harvest handling and agro-processing.
Pearl Bank has increasingly focused on addressing that financing gap by supporting agribusinesses and farmers seeking to scale up production and improve productivity.
One beneficiary, Equator Seeds Limited, says financing obtained through the bank enabled it to purchase foundation seed, invest in irrigation systems and mechanisation, and expand farmer training programmes. The investments reportedly boosted production and improved incomes for both the company and farmers participating in its out-grower network.
Analysts say access to such financing will be critical if Uganda is to achieve its ambition of transitioning from subsistence farming to commercial agriculture, a key pillar of the government’s economic transformation agenda.
Leveraging Government Financing Programmes
The government’s latest budget places significant emphasis on agricultural commercialisation and agro-industrialisation as drivers of economic growth.
According to the 2026/27 Budget Speech, the Agricultural Credit Facility (ACF) has cumulatively disbursed Shs1.35 trillion to more than 14,000 beneficiaries, while the Small Business Fund has extended over Shs82 billion to more than 4,000 enterprises.
Government has also committed Shs41 billion annually to support interest payments for large-scale commercial farmers cultivating more than 50 acres of grain and animal feed.
Earlier, while presenting the 2025/26 national budget, Finance Minister Henry Musasizi disclosed that government had invested Shs371.1 billion in the Agricultural Credit Facility as co-financing with participating financial institutions.
As one of the participating financial institutions under several government-supported financing schemes, Pearl Bank has become a key channel through which public financing is reaching farmers, cooperatives, processors and agricultural SMEs.
The bank’s extensive footprint has also strengthened its ability to serve rural communities. Pearl Bank currently operates through more than 11,500 agents across 1,935 sub-counties and over 6,150 parishes nationwide, giving it one of the country’s most extensive rural financial networks.
Recognition for Agricultural Financing
The bank’s growing role in agricultural finance has recently attracted recognition from industry stakeholders.
In April, the Bank of Uganda recognized Pearl Bank for its partnership and responsiveness in implementing the Agricultural Credit Facility and Small Business Fund schemes.
The central bank said the programmes have contributed to growth in Uganda’s agricultural and business sectors while supporting objectives outlined in the National Development Plan IV and government’s Tenfold Growth Strategy.
Earlier this year, Pearl Bank was also named Uganda’s Best Agri-SME Lender by Aceli Africa during the Aceli Uganda Stakeholder Roundtable in Kampala.
The awards coincide with strong growth in the bank’s agricultural portfolio. According to the bank, its agribusiness loan book expanded by 24 percent in 2025 compared to the previous year, driven by increased lending to farmers, agricultural cooperatives, processors, traders and small and medium-sized enterprises operating within agricultural value chains.
Speaking after receiving the Aceli Africa award, Pearl Bank Supervisor for Agriculture and Partnerships Julius Akais said the recognition reflected the institution’s commitment to supporting enterprise growth and addressing financing bottlenecks in agriculture.
“The awards signify the contributions Pearl Bank has made to agricultural financing in Uganda and perfectly align with our purpose of fostering prosperity for Ugandans, which is implemented through our two high-impact goals of driving sustainable financial inclusion and stimulating entrepreneurship and enterprise,” Akais said.
Agriculture at the Centre of Economic Transformation
Pearl Bank’s expansion in agricultural lending comes as government places renewed emphasis on commercial agriculture as a foundation for economic growth.
In the recently unveiled 2026/27 budget, government reaffirmed its commitment to the “full monetisation of Uganda’s economy through commercial agriculture, industrialisation, digital transformation and market access.”
With increased public funding flowing into agricultural finance schemes and commercial lenders expanding support to agribusinesses, policymakers hope the sector can generate higher incomes, create jobs and strengthen Uganda’s export competitiveness.
For financial institutions such as Pearl Bank, the challenge now lies in ensuring that affordable financing reaches more farmers and enterprises capable of driving the next phase of Uganda’s agricultural transformation.