Norwegian bank to spur agriculture

Uganda’s agricultural sector could be boosted after DFCU Limited and Netherlands’ Robobank joined hands to develop better agricultural business models.

Governor Bank of Uganda Emmanuel Mutebille, propelling him to describe Ugandan farmers as the laziest in the world, saying they have no excuse for the low agricultural output yet they are endowed with good soils and climate.

“There is no intrinsic reason why agriculture in Uganda which has some of the most fertile land in the world should continue stagnating, provided that we implement a comprehensive strategy to improve agriculture,” he said, adding that Ugandan farmers are the laziest in the world because they have the lowest yields and lowest use of fertilisers which is unacceptable.

DFCU is a leasing company established by government in the 1960s and listed on Uganda’s stock exchange. In 2001, it purchased a small bank in Uganda, renaming it DFCU bank where the Norwegian Development Fund acquired 10 per cent shares.
Mr Albert Johnkergouw, the global investment manager at Robobank says they intend to put farmers in groups and lend them in that way after assessing their needs.

According to Mr Juma Kisaame, the DFCU managing director, Robobank has acquired 27.5 per cent shares from the bank through the Norfund and this has enabled the bank expand its capital portfolio where they intend to open a dedicated agricultural department.

“Within the bank, we are going to open a department dedicated specifically to the agricultural products,” he said.

Meanwhile, the slow growth and poor productivity of Uganda’s agricultural sector has been challenged.

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