Connect with us

FARM NEWS

Agriculture holds key to economic growth – Mutebile

Published

on

BoU governor Emmanuel Tumusiime Mutebile

The value added by the agricultural sector had shrunk from 49% in 1991 to 24% in 2018,

Uganda’s economy could implode unless the government and the private sector carve out meaningful jobs for the country’s bustling youthful population.

Over 70% of Uganda’s 40 million population is under 30 years, with many currently unemployed.

Speaking at the annual Uganda Bankers Association (UBA) at Serena Hotel on Tuesday, Prof. Emmanuel Tumusiime Mutebile, the Governor Bank of Uganda warned that the population is set to hit 102 million in 2050 and 203 by 2100.

Urging government and the private sector players, especially commercial banks to avail low-interest credit facilities to farmers, the governor said: “focus attention on the potential role that finance could play in leveraging finance to defuse the demographic time bomb if Uganda doesn’t produce jobs for the youth.”

Mutebile added that 68% of the country’s populace, currently trapped in traditional and subsistence farming, need the help of all stakeholders, including commercial banks, to transform into modern and commercial farmers.

The governor noted that value added by the agricultural sector had shrunk from 49% in 1991 to 24% in 2018.

Mutebile, however, noted that despite that drop, the percentage of Ugandans employed in the sector had remained almost unchanged from 74% of the total population in 1991 to 71% in 2018.

He said that the formal sector is unlikely to provide employment for the youth, urging the government and the private sector to focus on export-oriented manufacturing and agro-processing to quench the rising demand for food, create jobs and reduce Uganda’s import bill.

Matia Kasaija who represented the Prime Minister Ruhakana Rugunda commended the media for marketing agriculture to the youth and noted that there is a need to strengthen agricultural institutions to spearhead the adoption of modern technology.

He said that the Uganda Development Bank had been allocated sh103.3b to provide low-cost financing to the sector, he noted that the government aims to recapitalize the bank with sh500b. Kasaija urged commercial banks to lend to the sector at affordable rates.

“China is open for agricultural products from Uganda. However, they need quality products and reliable supply,” he said.

Patrick Mweheire, the Stanbic bank CEO and UBA president said that public and private cooperation is needed to bring down the level of non-performing loans in the agricultural sector from 10% of all loans which is higher than the average of 3% for all loans.

Marianne Shoemaker, the Chief Executive Officer of Rabo Bank, who gave a keynote address on de-risking financing and investment in agriculture, urged the government to promote cooperatives and partnering with a bank to ensure easy access of finance to banks.

Source: New Vision

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

FARM NEWS

Govt moves to set up food and agriculture regulatory authority

Published

on

Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026. (Credit: Maria Wamala)

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

KAMPALA – The Government has proposed the creation of a food and agriculture regulatory authority to bring food, animal medicines, agricultural chemicals and related products under one regulatory framework.

Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026.

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

It will regulate food and feed manufacturing, processing and distribution, oversee food and feed safety, develop standards, inspect and certify agricultural inputs, and establish traceability systems for regulated products.

The Bill’s memorandum presents a troubling picture of the current food and agricultural regulatory system, stating that the country is “flooded with counterfeit substandard veterinary medicines and agricultural chemicals.”

It cites concerns over medicines and chemical residues, aflatoxins, harmful microorganisms and heavy metals in food and feed, warning that such contaminants compromise public health and the safety of agricultural exports.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)The memorandum attributes the problem in part to “fragmented regulation”, which it says has resulted in weak and uncoordinated regulation by multiple agencies, duplication of efforts and inefficiencies in enforcement.

It argues that the absence of a single body overseeing the food and agriculture value chain “undermines the effectiveness of regulation” and creates uncertainty for stakeholders.

The proposed authority will inspect food premises, certify meat for public consumption, inspect and certify fish, regulate processed and semi-processed food, and oversee the storage and transportation of food.

The Bill seeks to regulate food packaging, labelling and advertising, while prohibiting the use of radioactive materials, heavy metals and banned substances in food. It provides for residue monitoring to detect harmful substances in food products.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)

For agricultural chemicals, the Authority will license manufacturers, distributors, fumigators and commercial applicators. It would regulate the import and export of chemicals, as well as their packaging and labelling, storage, sale and advertising.

The Authority will have powers to recall agricultural chemicals and deal with prohibited, banned, restricted, falsified or adulterated products.

The Bill proposes inspectors and analysts with powers to access establishments, conduct sampling and analysis, seize adulterated products and oversee the disposal of obsolete, banned, prohibited and expired products.

Inspectors will, in certain circumstances, order the detention, return or destruction of non-compliant consignments.

The proposed authority will be a body corporate with perpetual succession. Its functions include the registration of veterinary medicines, veterinary devices, veterinary equipment, agricultural chemical application equipment and agricultural chemicals for use in Uganda.

The authority will be governed by a nine-member board appointed by the minister. The board will comprise a chairperson, six members with expertise in veterinary medicine, agriculture, pharmacy, standards and environmental science, and two representatives of farmers nominated by a recognised farmers’ federation.

The Bill contains 13 parts, 101 clauses and three schedules. It seeks to amend the Dairy Industry Act, Fisheries and Aquaculture Act, National Coffee Act and Animal Feeds Act, while repealing the Agricultural Chemicals (Control) Act and the Food and Drugs Act.

The proposed law seeks to give the Minister power to issue written policy directions to the authority.

The Government argues that the new framework would improve the quality and safety of agricultural inputs, strengthen consumer protection and help Uganda gain access to regional and international agricultural markets.

The Bill moves to the Agriculture Committee, where MPs are expected to examine its regulatory, institutional and enforcement provisions before it returns to the House for further consideration.

The public, including experts, are expected to provide their views on the Bill.

Continue Reading

FARM NEWS

Concern over low cassava yields in Bukedi region

Published

on

For decades, cassava has been more than just a crop in Bukedi Sub-region in eastern Uganda. It has served as a lifeline, providing a reliable source of food during droughts, a key source of household income and an integral part of the region’s cultural identity.

Across the districts of Budaka, Kibuku, Butebo, Pallisa and parts of Butaleja, cassava gardens once stretched across vast expanses of land. Families harvested the crop throughout the year, processed it into flour and sold surplus produce in local markets.

Today, however, those fields are shrinking. Farmers are increasingly abandoning cassava cultivation in favour of crops they consider more profitable and less risky, raising concerns about food security and the future of one of Bukedi’s traditional staples.

Continue Reading

FARM NEWS

Parliament gives Jinja land office three months to clear backlog

Published

on

Some staff of the Jinja Ministry Zonal Office meet members of the Parliamentary Committee on Land on August 27, 2026. PHOTO/TAUSI NAKATO.

Continue Reading

Resource Center

Legal Framework

READ BY CATEGORY

Facebook

Newsletter

Subscribe to Witness Radio's news and report updates



Trending

Subscribe to Witness Radio's news and report updates