By Our Reporter
The Governor of the Bank of Uganda, Michael Atingi-Ego, has urged communities in Moroto and the wider Karamoja region to take advantage of the affordable funding opportunities provided by the government through the Agricultural Credit Facility (ACF) and the Small Business Recovery Fund (SBRF).
The call was made during a recent speech delivered on his behalf at the Moroto Town Hall meeting in Moroto Municipality, where senior staff from the Bank of Uganda engaged local politicians, religious and cultural leaders, as well as other stakeholders, to discuss Karamoja’s evolving economic landscape, the importance of financial inclusion, and the community’s role in driving development.
Governor Atingi-Ego expressed optimism about the region’s growing economic potential. “Unlike in the past, Karamoja is emerging as a centre of economic opportunity. We at the Bank of Uganda are delighted to be here in Moroto, a district that is rapidly developing as a hub for economic activity. Karamoja has long been seen as a challenging region for development, but today, we are witnessing a transformation driven by mining, trade, and agriculture,” he said, adding that the Bank of Uganda is committed to making financial services more accessible in the region through the ACF and SBRF.
The Governor highlighted the significant impact of the ACF, a public-private partnership that has directed over one trillion shillings to more than 6,000 beneficiaries across Uganda. “In the northeastern region, over 500 projects have received Shs 62 billion in support. These loans serve various purposes, such as enhancing agricultural productivity and supporting farmers. They have been used to purchase tractors for farming efficiency, provide working capital for grain purchases, finance grain trade, and improve agricultural operations through facilities like greenhouses and storage units. Additionally, the funds have been used to acquire agro-inputs, purchase cattle and livestock for farming, and invest in agricultural machinery. These initiatives collectively aim to increase food security and improve the livelihoods of farmers across neighbouring districts,” he explained.
In addition, the Governor discussed the role of the SBRF, which was introduced following the reopening of the economy after the COVID-19 pandemic. The SBRF has provided nearly Shs 69 billion in support to over 3,400 businesses across Uganda. “In the districts neighbouringMoroto, 186 businesses have benefited, with a total of Shs 3.1 billion in support. These funds are helping small businesses recover and grow, from pharmacies to schools to hotels,” he added.
Governor Atingi-Ego further emphasised that both the ACF and SBRF are designed to promote inclusive finance through block allocations that enable smallholder farmers and micro-entrepreneurs to access credit without the need for traditional registered collateral. Instead, these facilities rely on factors such as the borrower’s character, cash flow, and movable property. However, he acknowledged that not everyone who could benefit from these funds has yet accessed them. “We have not yet seen significant demand or uptake of the ACF and SBRF funding from Moroto. We are aware of your concerns regarding complex application processes and limited awareness,” he said.
To address these challenges, he assured the audience that the Bank of Uganda and its partners are working to simplify eligibility criteria, enhance financial literacy programmes, and encourage banks to serve all regions equitably. This will allow repeat borrowing to support sustainable growth and ensure that no eligible beneficiary is left behind. “We strongly encourage farmers, businesses, women, and youth in Moroto and the wider Karamoja region to take full advantage of the funding available under the ACF and SBRF to address the region’s limited access to financial services,” he urged.
He concluded by encouraging local communities to engage with banks and explore the opportunities available. “We urge you to use these funds to improve the quality and quantity of your livestock through value-added activities such as fattening and restocking. Please also consider using the ACF alongside the Government’s Parish Development Model funds to join and thrive in the money economy,” he said.
