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Agriculture rebounds as economy recovers

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Prices of agricultural products are starting to rebound as the easing of lockdown measures in Uganda open up places of food consumption.

Evans Nakhokho, the chief manager, Agribusiness at Centenary bank, said during a thought-leadership forum hosted by the bank that economic recovery interventions had triggered a five per cent increase in food prices.

“The five percentage point price improvement is largely attributed to the gradual recovery of activities in the agricultural sector and the economy as a whole. A case in point is the improved price of matoke and other foodstuffs,” Nakhokho said.

Key to this recovery is the role that has been played by both financial and non-financial services in helping to ease the access of credit to framers, which, according to Nakhokho, raised the fortunes in the sector.

“Financing plays an instrumental role in boosting agricultural activities. The structured ecosystem that focuses on both financial and non-financial services has enabled the utilization of credit. This year, we have disbursed close to Shs 600 billion, of which 60 per cent has been issued to smallholder farmers.”

The symbiotic relationship shared by the banking sector and agriculture means that both have been pivotal to each other’s recovery efforts, according to Nakhokho.

“Agriculture financing contributes about 12 per cent of the total lending to all sectors in the banking industry, which is approximately Shs 2 trillion,” he said.

Beyond the financing, banks have also offered guidance to their customers in relation to managing their credit and how it can be invested for a strong return on investment, according to Nakhokho. He said they had reviewed business projects and even restructured the loans to make it easier for customers to pay back the money.

LESSONS

Mona Ssebuliba, chief operating officer, Agricultural Business Initiative (aBi), said their focus as an organization has been on stabilizing and strengthening financial institutions to ensure that agribusiness financing is supported.

“This has been implemented by rescheduling lines of credit (principal and interest) for a period of 12 months, reduced interest rate from an average of 13.5 per cent to 8.2 per cent on all running facilities…”

Ssebuliba said. Ssebuliba said farmers have to improve their businesses if they are to survive other challenges. He advised commercial farmers to have “the ability to swiftly adapt to improved business models, digitizing for improved resilience, business monitoring, and putting in place business continuity plans for the unexpected occurrences…”

ASSESSING COVID IMPACT

Martin Fowler, the agriculture adviser, United States Agency for International Development (USAID) Uganda, recently stated that the Covid-19 lockdown presented mixed results in the prices of food. According to Fowler, there was a slight spike in staple food prices between March and April, followed by a slight decline, though, to August.

“Maize prices rose rapidly in the early weeks of Covid-19 lockdown (mid- March to April) from Shs 1,129 to Shs 1,458 per kg. This trend was caused by a combination of panic buying, speculation, government purchases and supply-chain disruptions. Other staples mirrored this trend,” Fowler said.

According to Fowler, food prices currently remain close to (significantly above, in the case of beans) 2019 levels and the five-year (2015-2019) averages, which shows that the sector has for the meantime managed to weather the storm from the impact of Covid-19 on the agricultural sector.

Effecting of the lockdown by the government, therefore, led to a decline in effective demand for food, which reduced household incomes, according to USAID.

Agriculture experts have now projected that the significant loss of formal sector jobs and incomes as a result of the impact of Covid-19 will continue to impact negatively the domestic demand for food, and their prices on the market. Similarly, international and regional demand prospects for agricultural commodities remain uncertain despite the improvement in food prices.

Original Post: The Observer

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FARM NEWS

Govt moves to set up food and agriculture regulatory authority

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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.

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FARM NEWS

Concern over low cassava yields in Bukedi region

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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.

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FARM NEWS

Parliament gives Jinja land office three months to clear backlog

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

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