The Government of Uganda has officially launched the National Oil Palm Project (NOPP), a major agricultural initiative aimed at empowering smallholder farmers and transforming livelihoods in the Busoga sub-region and beyond.
The project, implemented through a government-managed credit facility administered by Equity Bank, has so far disbursed Shs1.2 billion to support 896 oil palm farmers across various districts.
The launch ceremony, held at Mayuge District Headquarters, was presided over by the State Minister for Agriculture, Animal Industry and Fisheries, Hon. Fred Bwino Kyakulaga, alongside Equity Bank’s Director for Public Sector and Social Investment, Ms. Catherine Psomgen.
The colorful event attracted district leaders, local councillors, and hundreds of farmers who gathered to witness the historic unveiling of the project, which is expected to uplift the agricultural and economic profile of the region.
Minister Kyakulaga praised the partnership between the Ministry of Agriculture and Equity Bank, describing it as a model collaboration that combines government support with private-sector efficiency.
“The government of Uganda selected Equity Bank as a partner, specifically to manage the credit facility,” he said. “Through this, the bank is holding and dispensing the funds but also providing capacity-building to the smallholder farmers through various financial and investment solutions, incorporating enablers to reduce risk and maximize success.”
Equity Bank, through this initiative, has extended financial literacy and practical agricultural training to the farmers, ensuring that the credit extended is efficiently utilized and that farmers gain sustainable returns from their oil palm ventures.
Psomgen highlighted that the bank’s approach integrates technology, transparency, and accountability to guarantee that all beneficiaries receive their support fairly and on time.
“Equity is also employing modern banking systems to track every transaction, verify beneficiaries and ensure funds reach the genuine oil palm farmers in record time,” she said.
According to Equity Bank officials, oil palm seedlings take about 18 months before they are ready for planting. In the past two years, 896 farmers have successfully benefited from the Shs1.2 billion funding, enabling them to establish well-prepared gardens with the necessary inputs.
All participating farmers have been trained on modern farming techniques, including how to dig proper planting holes, apply fertilizers, and use pesticides effectively. Each has also been supplied with quality seedlings ready for planting.
Minister Kyakulaga emphasized that the project will have a transformative effect on the region’s economy, particularly in reducing poverty among Busoga’s rural communities.
“This move is going to go a long way in transforming the people of Busoga from the chronic poverty which has affected them for so long,” he said.
The National Oil Palm Project is being implemented in phases. The first phase currently covers the districts of Buvuma, Mayuge, Bugiri, and Namayingo. The second phase, expected to commence next year, will extend to Kamuli, Iganga, Jinja City, Bugweri, Namatumba, Luuka, and Kaliro.
To qualify for the credit facility, each farmer or group of farmers is required to have at least five hectares of land. Those with the full five hectares receive Shs25 million, while those with smaller plots — such as 2.5 hectares — receive proportional funding.
However, Minister Kyakulaga clarified that not all the funds are transferred directly to farmers’ accounts. A significant portion is managed through the bank to ensure proper use and accountability.
“The ministry has suppliers who are directly paid to deliver pesticides, fertilizers, and other materials, as well as to provide training and maintenance services. The rest of the funds are remitted to the farmers’ accounts and tracked for transparency,” he explained.
Highlighting the project’s long-term benefits, Kyakulaga said Uganda already has a large domestic market for palm oil and its by-products, even before exports are considered.
“Uganda alone, minus exports, has a ready market for palm oil, soap, cosmetic products and various items which require palm oil as a raw material,” he stated.
“At harvest each farmer will be directly earning UGX 2.5 million monthly, and that runs for about 25-30 years. So, the Government of Uganda has answered the Busoga poverty and job crisis issue with this National Oil Palm Project,” he added.
The National Oil Palm Project is expected to create thousands of new jobs, strengthen agro-industrial value chains, and support Uganda’s drive toward self-sufficiency in edible oil production.
With the partnership between Equity Bank and the Ministry of Agriculture, farmers are now positioned to benefit from financial empowerment, modern farming knowledge, and a guaranteed market — setting a new chapter for Uganda’s agricultural transformation.
