Mayuge, Uganda: The Government of Uganda has launched a major poverty eradication drive in Busoga Sub-region through a new oil palm cultivation project, aimed at transforming the livelihoods of smallholder farmers and boosting household incomes.
The initiative, spearheaded by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), will see at least 50,000 oil palm seedlings distributed to farmers across the sub-region, starting with Mayuge, Bugiri, and Namayingo districts.
Speaking during the launch of the seedling distribution at Ikulwe NARO Satellite Station in Mayuge on Friday, State Minister for Agriculture, Hon. Fred Bwino Kyakulaga, said the project is part of government efforts to eliminate poverty by empowering farmers to earn sustainable incomes from cash crops.
“A farmer with five acres of oil palm will be supported with a credit of Shs5 million. Our calculations show that one acre can earn a farmer up to Shs1 million per month when well maintained,” Minister Bwino said.
$210m investment targets Busoga transformation
The government, working with the International Fund for Agricultural Development (IFAD) and private investors, has mobilized up to $210 million (approx. Shs300 billion) to finance the project. The funds will be channeled through Equity Bank, which is acting as the project’s financial manager.
Minister Bwino said the success of oil palm production in Kalangala District had inspired its expansion into Busoga, with plans already underway to include Jinja, Luuka, Iganga, and Bugweri districts in the next financial year.
“We are not undermining sugarcane growing,” he emphasized. “We’re only encouraging farmers to dedicate at least 10% of their land to oil palm so that the rest can be used for food and sugarcane production.”
According to the ministry, Uganda currently faces a deficit of 450,000 metric tonnes of vegetable oil per year, creating a ready domestic market for oil palm products.
Equity Bank takes charge of farmer financing
Ms. Catherine Sonke, Director for Public Sector and Social Investments at Equity Bank, said the bank has been managing funds for the project for the past two years, benefiting over 900 farmers with a total of Shs2.1 billion.
“We are offering loans at an interest rate of 10%, which is well below the market average of 21%,” Ms. Sonke explained. “Farmers have a ten-year repayment window, with a grace period of four years before repayment starts.”
At the launch event, Minister Bwino presented a dummy cheque worth Shs1.2 billion, which is already deposited in bank accounts awaiting disbursement to farmers’ mobile phones in Mayuge, Bugiri, and Namayingo.
He also cautioned farmers against buying counterfeit seedlings, urging them to source only improved varieties provided by the government in partnership with NARO.
Leaders, farmers welcome oil project
Local leaders in Busoga praised the initiative, saying it will complement other government programs such as the Parish Development Model (PDM) in boosting rural incomes.
Bugiri District LCV Chairperson, Mr. Kasaija Davidson Mulumba, commended the Agriculture Ministry for the intervention but called for more sensitization and easier access to seedlings.
“I want to assure you, Hon. Minister, that this project will be fruitful,” Kasaija said. “But the government should intensify awareness and ensure seedlings reach farmers easily.”
Farmers at the launch expressed optimism that the project would lift them from poverty, with many describing it as a “game-changer” for Busoga’s rural economy.
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