Shs 64 Billion availed for Ugandan agriculture SMEs, SACCOs in PostBank-AFD deal

PostBank, which is currently undergoing a transition to Pearl Bank, has today formalised a strategic 13-year partnership with Agence Française de Développement (AFD), the French government’s public development bank. 

The collaboration, announced at PostBank’s Nansana Branch, will inject €16 million (approximately UGX 64 billion) into Uganda's agricultural sector. 

The  funding is earmarked to boost sustainable financing for agricultural micro, small, and medium enterprises (MSMEs), smallholder farmers, and Saving and Credit Co-operative Societies (SACCOs), with a distinct focus on women- and youth-owned businesses. 

The initiative aligns closely with the government's National Development Plan IV (NDP IV), which champions agro-industrialisation as a key anchor for employment, currently engaging around 70% of the Ugandan population.

The total UGX 64 billion commitment from AFD is structured in two parts to maximise impact. The core of the funding comprises a €15 million (UGX 60 billion) concessional line of credit, designed to expand PostBank’s climate-smart agriculture finance products and deepen financial inclusion within rural communities. 

Complementing this is an additional €1 million (UGX 4 billion) technical assistance grant. 

PostBank Uganda Managing Director, Julius Kakeeto, told press that the grant would strengthen the bank’s capacity to deliver affordable and sustainable financial solutions, particularly to underserved groups. 

Mr Kakeeto noted that this alliance reaffirms PostBank’s core purpose of Fostering Prosperity for Ugandans by enabling participation across the rich agriculture value chain, from agro-input suppliers to mechanisation dealers.

“PostBank continues to play a key role as a financing partner in Uganda’s agricultural transformation, especially in supporting rural communities, women-led farming groups, and informal farmer cooperatives,” he said

“This collaboration is an enabler of achieving this through tailored financial solutions and a portfolio designed to enable different sectors to attain their full potential.”

The partnership’s objectives are manifold, targeting both financial access and sustainable development. Key goals include expanding financial access in the agricultural and rural sectors, supporting the development of innovative financing solutions, and promoting gender equality through tailored products for women and youth. 

The alliance will also build local capacity in sustainable, climate-resilient agriculture. 

H.E. Virginie Leroy, the Ambassador of France to Uganda, expressed her enthusiasm, stating that through this initiative, "France is investing in Uganda’s farmers, cooperatives, and rural entrepreneurs—the driving forces behind the country’s agricultural sector." 

AFD’s Country Director, Marc Trouyet, added that the collaboration aims to unlock new energy and investment while driving the adaptation of agriculture to the realities of climate change.

PostBank recently secured a prestigious sustainability certificate from the European Organisation of Sustainable Development (EOSD). 

Just months earlier, in June, the Bank received a total of five awards at the Bank of Uganda’s Agriculture Credit Facility (ACF) and Small Business Recovery Fund (SBRF) Awards. 

Managing Director Kakeeto concluded by appreciating the French delegation for walking this journey, which he believes will create a tangible impact on the agriculture sector and inspire sustainable development across the nation.