Strategic development funds administered by the Bank of Uganda (BoU) provided a critical lifeline to agriculture and small businesses in FY 2024/25, with disbursements under the Agricultural Credit Facility (ACF) and Small Business Recovery Fund (SBRF) seeing dramatic increases.
The BoU received a staggering 7,620 ACF applications from Participating Financial Institutions (PFIs) for financing worth UGX 263.32 billion, a 99% cumulative increase in the number of applications received compared to the previous financial year. Disbursements during the year increased by UGX 253.12 billion, extended to 3,224 projects—a 73% increase in the number of projects supported.
A key highlight was the performance of the “block allocation” model, designed to promote financial inclusion for underserved groups like youth and women. Disbursements under this arrangement increased by 57% to UGX 10.52 billion, reaching 2,500 small-holder farmers who often lack traditional collateral.
The Small Business Recovery Fund (SBRF) also showed remarkable results. The value of loans approved more than doubled, supporting 1,329 SMEs. This led to disbursements of UGX 31.68 billion to 1,100 SMEs, accounting for over 80% of the loans approved during the year.
These funds have had a tangible impact on the economy. A total of UGX 131.08 billion was disbursed to projects engaged in grain trade, which plays a pivotal role in stabilizing prices—a core mandate of the BoU. Another UGX 91.92 billion supported on-farm activities, which form the foundation for grain trade and agro-processing and employ the majority within the agricultural value chain.
The BoU attributes this stellar performance to an aggressive marketing strategy and the automation of the ACF System (ACS), which reduced processing times and improved efficiency. To recognize the efforts of PFIs, the BoU held an award ceremony on May 28, 2025. PostBank Uganda Limited and Opportunity Bank were the overall winners for the ACF and SBRF in Tier I and II, respectively.
These financing initiatives directly support the BoU’s core mandate of maintaining price stability. By increasing agricultural productivity and supporting business recovery, they help stabilize food supply and market activity, thereby reducing inflationary pressures and enhancing economic predictability.
