Sasakawa Africa Association, VisionFund partnership opens financing opportunities for Kibuku farmers

Smallholder farmers in Kibuku District are gaining access to agricultural loans, improved farming services and produce markets through a partnership between Sasakawa Africa Association (SAA) and VisionFund Uganda.

The initiative seeks to address challenges that have long prevented rural farmers from expanding their businesses, including limited access to credit, costly agricultural inputs and unreliable markets.

Under the arrangement, community-based facilitators connect farmers to financial institutions, train them in loan management and help them secure services needed to improve production.

One of the facilitators, Yoweri Zungu, has already linked eight farmer groups in Kibuku to VisionFund's financial services.

Zungu, who received training from SAA, works as a Commercial Community-Based Facilitator (CCBF). His responsibilities include identifying farmers who need financing, preparing them for borrowing and monitoring how they invest the money.

SAA deputy country director Joseph Paschal Bbemba said the programme seeks to ensure that farmers receive more than financial assistance.

“His work begins before borrowing. He profiles farmers and their businesses, helps prepare groups and supports financial literacy training alongside VisionFund,” Bbemba said.

He explained that facilitators remain in contact with farmers after they receive loans to ensure the money supports agricultural activities.

They also help borrowers address repayment challenges and maintain communication with financial institutions.

The partnership further connects farmers to planting, weeding, spraying and produce marketing services through Pallisa Agribusiness Training Association (PATA), which operates under the One Stop Centre Association model.

Crispus Kadondi, the acting manager of VisionFund Mbale, said working with SAA has enabled the institution to reach farmers who previously struggled to obtain financing.

He said many rural households have viable agricultural activities but lack the capital required to purchase seeds, hire labour and maintain their gardens.

“One thing I would like to say about Sasakawa is that they have really opened that visibility in the communities. There are farmers who are in need of money, and they are limited in doing their services,” Kadondi said.

Through the facilitators, VisionFund can identify potential borrowers and assess their financial needs.

Kadondi said farmers who have received loans are investing in production activities and recording improvements in their harvests.

“They are getting money, they are putting it into planting, weeding and at the end of the day, they are benefiting, they are harvesting, their yields are going high,” he said.

However, he stressed that farmers must undergo financial literacy training before accessing loans.

The training helps borrowers understand loan conditions, plan their spending and establish repayment arrangements.

Kadondi said existing farmer groups require less time to complete the process because they already understand the lender's requirements.

“For existing groups, even one day or two days are enough for training. Because we have been with them, they know what we need, it is a matter of refinancing them,” he said.

New groups undergo additional assessments to establish their ability to manage loans and repay the money.

Kadondi said involving trusted community facilitators has also improved relations between borrowers and the lender.

“When they see their own, someone from their area, linking them to us, and is telling them, get this money, use it, and make sure it is paid within this time frame, they can easily listen to him,” he said.

The facilitators also remind farmers about repayment deadlines and help resolve difficulties before they affect loan recovery.

Besides linking farmers to loans, Zungu helps them find buyers and avoid selling produce at unfavourable prices.

He said some farmers lose potential income because they lack proper drying equipment or sell their harvest immediately to meet urgent financial needs.

To address this, he provides tarpaulins, commonly known as capelas, which farmers use to dry crops such as groundnuts.

“What I do is support farmers in accessing markets. I provide capelas to some farmers in the villages. A farmer may be harvesting groundnuts but does not have a capela for drying,” Zungu said.

He also connects farmers to marketing services at the One Stop Centre, where they can assess available buyers and prevailing prices.

Zungu said he sometimes advises farmers to delay selling when prices are low, provided they can safely store their produce.

“When we see that the prices of these products are low, I talk to the farmer and tell him to give it some two weeks for the prices to go high. When they go high, we sell at a high price and bring money to the farmers,” he said.

The approach helps farmers make marketing decisions based on available opportunities rather than selling immediately after harvesting.

Zungu also connects farmers to agricultural inputs and service providers to support their production activities.

Bbemba said the arrangement creates opportunities for community facilitators to earn income by providing services to farmers.

This gives them an incentive to continue supporting agricultural businesses beyond the duration of individual development projects.

Smallholder farmers across Uganda continue to face challenges that affect productivity and earnings.

These include inadequate financing, limited access to quality agricultural inputs, poor storage facilities, weak market connections and changing weather patterns.

Such challenges often prevent farmers from expanding production or earning reasonable returns from their harvests.

To address these gaps, SAA has been implementing the One Stop Centre Association (OSCA) model, which brings agricultural services closer to organised farmer groups.

The model supports cooperatives by improving access to inputs, mechanisation, training, storage facilities, value addition and produce markets.

It also promotes climate-smart agricultural practices to help farmers respond to changing weather conditions.

Through the partnership with VisionFund, SAA is combining these services with access to agricultural financing.

The arrangement allows farmers to obtain loans while receiving guidance on production, financial management and marketing.

For VisionFund, the partnership provides a network of community facilitators who can identify potential borrowers and maintain contact with them throughout the loan period.

With eight farmer groups already connected to financial services through Zungu, the partners hope to strengthen rural agricultural enterprises and help more farmers move from subsistence production towards commercial farming.