Mr. Michael Mugabi, Managing Director of Housing Finance Bank during the signing the Memorandum of Understanding with the Government.
As agriculture and food security take center stage in Uganda’s national discourse, the Housing Finance Bank (HFB) is pleased to announce the signing of a transformative Memorandum of Understanding (MoU) with the Government of Uganda. This partnership will enable HFB to finance large-scale commercial farming initiatives aligned with government programs that are crucial to the growth of Uganda’s agricultural sector, economic development, and poverty reduction efforts.
“As we embark on this new partnership with the Government of Uganda, through the Ministry of Finance, Planning, and Economic Development (MOFPED), we are excited about the opportunities to further enhance our impact on the agricultural sector. This marks a pivotal moment in the country’s journey toward becoming the leading food basket in the region,” said Michael Mugabi, Managing Director of Housing Finance Bank.
“This partnership is a testament to our unwavering commitment to supporting Uganda’s agricultural revolution. It aligns perfectly with our focus on empowering farmers, agribusinesses, and rural communities through innovative financial solutions, such as our microfinance and SME lending programs for smallholder farmers, as well as our land loans, which enables customers to acquire land that can be put to agricultural use, among other initiatives,” he added
Since transitioning from a specialized mortgage bank to a fully-fledged commercial bank, Housing Finance Bank has positioned itself as a leading partner in Uganda’s agricultural sector. The bank has consistently supported government initiatives aimed at fostering food security and economic development. Over the past five years, HFB has disbursed over UGX 700 billion in loans to more than 600 customers, directly contributing to Uganda’s agricultural growth. The bank has empowered farmers by facilitating access to credit, enabling technology adoption, and supporting value-added initiatives that create a more robust and sustainable agricultural economy.
At the heart of this effort is HFB’s commitment to achieving the United Nations Sustainable Development Goal (SDG) 2: Zero Hunger. The bank’s strategic approach ensures that agriculture remains a priority sector in its mission to alleviate poverty and promote inclusive economic growth.
Housing Finance Bank is dedicated to driving long-term sustainability in the agricultural sector. As part of this commitment, the bank has embedded sustainability practices into its operations. These include financing initiatives that prioritize climate-smart agriculture, water conservation, and soil health. By adopting these practices, HFB aims to ensure that the growth of Uganda’s agricultural sector remains both environmentally and economically viable for generations to come.
Key Partnerships Driving Agricultural Transformation
The success of this initiative is further strengthened by HFB’s strategic collaborations with several key players in Uganda’s agricultural ecosystem. These include:
- Bank of Uganda: Joint initiatives like the Agricultural Credit Facility (ACF) to enhance credit access for farmers.
- aBi Finance: A partnership aimed at providing technical assistance and capacity building to small and medium-scale farmers and agribusinesses.
- Equipment Suppliers: Collaborations with industry leaders such as Cooper Motors Corporation, Engineering Solutions Limited, and Motor Center, enabling the acquisition of modern agricultural machinery to boost productivity.
“We are confident that this initiative will play a vital role in transforming the agricultural sector into a key driver of national growth.”We urge all intended beneficiaries of this initiative to embrace sustainable agricultural practices. Adopting environmentally friendly, economically viable, and socially responsible methods will not only safeguard our natural resources but also ensure profitability for farmers and the long-term success of the sector,” Michael concluded.
The Memorandum of Understanding (MoU) between the Housing Finance Bank and the Government of Uganda is poised to transform the agricultural sector, positioning Uganda as a regional food hub and equipping farmers with the tools, knowledge, and financial resources to succeed. This partnership underscores agriculture’s crucial role in driving the nation’s economic growth and improving the livelihoods of its people. Housing Finance Bank remains dedicated to supporting the sector through innovative solutions, strategic partnerships, and a long-term commitment to sustainability. Together, they are shaping a future where agriculture not only drives Uganda’s economy but also fosters opportunity, prosperity, and food security for all.
