Christopher Burke

Burke says that while Uganda has made progress in reducing the cost of agricultural finance, millions of smallholder farmers remain locked out because they are invisible to formal lenders.

Agriculture contributes about 24 per cent of Uganda’s GDP, 35 per cent of export earnings and employs 68 per cent of the labour force, according to the World Bank’s latest Economic Update. However, many productive farmers remain almost invisible to formal finance.

A coffee farmer may have years of cooperative deliveries, a known plot, established trees and a credible production plan. The cooperative may know the farmer’s history, a buyer may hold payment records and an agricultural company may understand seasonal requirements. This information is often fragmented or unavailable to banks. The issue is not only whether information exists, but who verifies and standardises what determines access to capital.

This gap has a price. Bank of Uganda reports that the average agricultural lending rate reached 20.7 per cent in the three months to March 2026, above the overall average of 18.65 per cent. At those rates, seasonal borrowing is difficult even where an investment is commercially sound.

Government recognises the problem. The Agricultural Credit Facility (ACF), administered through participating financial institutions, financed 11,358 loans worth UGX1.35 trillion (US$366 million) by December 2025. Government has also established a UGX176 billion (US$48 million) scheme for large commercial farmers, while the national budget prioritises commercial agriculture and digital transformation.

The challenge is not only cheaper capital, but efficient delivery to farmers whose loans are small, seasonal and costly to assess. Public policy can reduce funding costs, but access depends on how market actors translate policy into workable lending standards.

The ACF figures illustrate the imbalance. Micro-enterprises represented 76 per cent of beneficiaries but received only 3 per cent of disbursed value. Large projects represented 6 per cent and received 90 per cent. This reflects the transaction costs of identifying farmers, verifying production, assessing cash flow and monitoring many small accounts.

A practical response is a proportionate farm-credit profile containing information needed for a lending decision: verified identity, farm location, cultivated area, production history, cooperative or buyer records, financing needs, insurance status and the expected source and timing of repayment.

These profiles would not replace appraisal or automatically substitute for collateral. They would give banks a consistent reference point, reduce repeated data collection and help distinguish a functioning enterprise from an applicant about whom little can be verified. The profile would become a common interface through which institutions assess and manage risk.

Cooperatives are essential, but their responsibilities must be defined. They can confirm membership, aggregate applications, validate production and delivery records, support financial literacy and, where legally agreed, facilitate deductions from crop proceeds. Membership should not amount to an automatic guarantee, and cooperatives should not be expected to absorb losses arising from weak appraisal or inadequate monitoring.

Agricultural companies can support farm mapping, production information, input verification and agronomic advice, while insurers cover defined risks. Banks retain responsibility for due diligence, affordability assessment, pricing, disbursement, monitoring and recovery. This distributes governance functions among public, private and cooperative actors without removing accountability.

Bank of Uganda’s block allocation model demonstrates aggregation. During the final quarter of 2025, UGX5.04 billion (US$1.37 million) was disbursed to 1,156 micro-borrowers through loans not exceeding UGX20 million. The model allows lenders to assess clusters and use cash flow, movable assets, credit history and group guarantees rather than relying on titled land.

Women remain underrepresented in the ACF. In December 2025, they accounted for 23 per cent of beneficiaries and received only 3 per cent of disbursed value. Bank of Uganda reports stronger participation under block allocation, which permits consideration of cash flow, movable assets, credit history and group guarantees. This is important for women operating productive farms without formal land ownership.

Picture courtsey of OXFAM GB

Bank of Uganda estimates that at least 80 per cent of farmers lack conventionally bankable collateral. Regulators and banks should develop proportionate approaches to alternative security, seasonal cash-flow lending and cooperative verification while maintaining prudential standards.

Insurance is best integrated when a loan is designed. Under the Uganda Agriculture Insurance Scheme, government subsidises 50 per cent of premiums for small-scale farmers, 30 per cent for large farmers and 80 per cent in disaster-prone areas. The Ministry of Finance reported the annual UGX5 billion (US$1.36 million) allocation was inadequate and recommended UGX10 billion (US$2.72 million).

Insurance does not guarantee repayment, but it can prevent a defined weather event from causing an immediate default. Linking insurance, verified production information and seasonal repayment schedules makes risk more measurable and gives banks a stronger basis for pricing loans. Premium pricing and lending terms can therefore reward risk reduction without requiring a new legal mandate.

Digital technology can lower transaction costs, but more data is not automatically better. A farm profile is not neutral if it determines who becomes visible, insurable or creditworthy. Farmers must know what is collected, why, who can access it and how errors can be corrected.  Any system must comply with Uganda’s data-protection framework, apply informed consent and restrict information sharing to legitimate purposes.

Uganda’s Fourth National Development Plan links agro-industrialisation with science, technology and innovation. Agricultural finance is an obvious place to apply this direction. The priority should not be another stand-alone application or pilot database, but trusted arrangements through which banks, cooperatives, insurers and agricultural businesses use verified information responsibly. The state sets policy and prudential boundaries, while market actors operationalise them through lending, insurance and data standards.

The case is strengthened by the ACF’s reported non-performing asset ratio of 0.57 per cent at December 2025, compared with 3.7 per cent across commercial banks. Agricultural lending is not inherently unmanageable. It performs better when capital, information, technical support, insurance and repayment structures are aligned.

Uganda has begun lowering agricultural capital costs. The next priority is to reduce the cost of identifying, evaluating and financing credible farmers. This missing infrastructure may determine whether affordable finance reaches viable enterprises at scale or remains concentrated among borrowers already visible to banks. It also shows how public objectives can be implemented through market-based systems that coordinate behaviour, allocate responsibility and shape access to essential resources.

Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With over 30 years of experience, he has worked extensively on social, political and economic development issues focused on governance, agriculture, environment, extractives, policy formulation, communications, advocacy, conflict transformation, international relations and peace-building in Asia and Africa.

The post Making Smallholder Agriculture Visible to Finance appeared first on 256 Business News.

A new partnership between Equity Group, the AfricaNenda Foundation and the Gates Foundation is set to accelerate the development of Digital Public Infrastructure (DPI) across Africa, in a move expected to deepen financial inclusion, strengthen digital payments and support regional trade under the African Continental Free Trade Area (AfCFTA).

The initiative, unveiled in Nairobi on Tuesday, will begin in Rwanda before expanding to the Democratic Republic of Congo and other African markets. It aims to bring together governments, regulators and the private sector to build interoperable payment systems, trusted digital identity platforms and secure data exchange infrastructure that makes financial services more accessible and affordable.

The partnership comes as African governments intensify efforts to digitise public services and financial systems despite nearly 400 million people across the continent remaining excluded from formal financial services.

As part of the initiative, Equity Group Managing Director and Chief Executive Officer Dr. James Mwangi has been appointed Africa’s inaugural Continental Digital Public Infrastructure Champion. In the role, he will advocate for stronger collaboration between governments, regulators, development partners and the private sector to accelerate the continent’s digital transformation.

AfricaNenda Chief Executive Officer Dr. Robert Ochola said the partnership reflects the growing importance of private-sector participation in delivering digital public infrastructure at scale.

“Digital Public Infrastructure cannot succeed without private-sector participation. Equity brings the execution capability, market reach and innovation needed to move this agenda from policy to implementation,” he said.

The partners will focus on expanding interoperable payment systems, strengthening merchant and government payment platforms, supporting cross-border payment ecosystems, providing technical assistance and engaging policymakers to speed up adoption across African economies.

Dr. Mwangi described digital public infrastructure as the foundation for the next phase of Africa’s economic transformation.

“Digital Public Infrastructure provides the foundation for inclusive digital financial services that reach every citizen. We will continue working with governments, regulators, development partners and the private sector because this infrastructure has the potential to transform economies, expand opportunity and improve lives across Africa,” he said.

The collaboration is also expected to advance implementation of the African Continental Free Trade Area by enabling seamless cross-border payments, trusted digital identity systems and secure exchange of information among participating countries. These capabilities are expected to lower transaction costs, improve business efficiency and unlock new commercial opportunities for enterprises operating across borders.

The Gates Foundation said its support is aimed at ensuring digital public infrastructure delivers tangible benefits for citizens by making digital services more inclusive and accessible rather than remaining solely a technology initiative.

Senior Advocacy Officer for Africa at the Gates Foundation, Nanjira Sambuli, said the success of digital public infrastructure should ultimately be measured by its ability to improve people’s daily lives and expand access to financial services.

AfricaNenda currently works with more than 30 central banks across Africa to strengthen inclusive instant payment systems and believes the partnership with Equity Group will help accelerate practical implementation models that can be replicated across the continent.

The announcement reinforces growing momentum behind public-private partnerships as African countries invest in interoperable digital infrastructure to drive financial inclusion, regional integration and long-term economic growth.

The post Equity Group, AfricaNenda launch pan-African digital infrastructure drive to boost financial inclusion appeared first on 256 Business News.

For years, Uganda’s financial inclusion agenda has focused on bringing more people into the formal banking system. Increasingly, however, banks are discovering that the fastest route to underserved communities may not be through new branches, but through institutions that rural Ugandans already trust.

That shift was evident as Stanbic Bank Uganda announced a fresh push to finance Savings and Credit Cooperative Organisations (SACCOs) and village savings groups, positioning community-based finance as one of the country’s most effective channels for expanding access to affordable credit.

Speaking during the 28th Annual General Meeting of the Association of Microfinance Institutions of Uganda (AMFIU), Stanbic revealed that its partnerships with SACCOs and Village Savings and Loan Associations (VSLAs) have enabled more than UGX 362 billion in financing since 2021, reaching nearly four million Ugandans, the majority of them smallholder farmers.

The funding has also enabled approximately 780,000 members of community financial institutions to access credit, illustrating the growing role that cooperative finance is playing in Uganda’s rural economy.

But the bank is now raising the stakes.

To accelerate agricultural productivity, Stanbic has reduced its lending rate for agriculture-based SACCOs to 10 percent per annum, a move it believes offers some of the most affordable commercial financing available to the sector.

Multi-purpose SACCOs will access financing at 12.5 percent, with eligible institutions able to borrow up to UGX 7 billion.

According to Stephen Segujja, Head of the Economic Enterprise Restart Fund at Stanbic Bank, the strategy reflects a deliberate move away from viewing financial inclusion simply as account ownership.

“We believe financial inclusion is not simply about opening accounts or providing loans. It is about creating opportunities,” he said.

Stephen Segujja Head, Economic Enterprise Restart Fund,Stanbic Bank

For the bank, those opportunities include helping farmers improve productivity, enabling women entrepreneurs to grow their businesses and creating pathways for young people to build sustainable livelihoods.

Segujja noted that Stanbic’s relationship with SACCOs has changed dramatically over the past five years.

“At the start of 2021, as a bank we barely had any business to talk about regarding SACCOs and VSLAs. Today, the impact has been demonstrated not only within the bank but across the banking industry.”

The initiative forms part of Stanbic’s broader Women, Youth and Farmers (WYF) strategy, under which the bank committed UGX 1 trillion towards supporting Uganda’s productive sectors through tailored financing, business development and strategic partnerships.

Beyond credit, the bank is investing in strengthening the institutions themselves.

Working alongside partners such as aBi Finance, Stanbic is supporting SACCO digitisation while using its FlexiPay platform to extend digital financial services to cooperative members. More than 35,000 women leaders and farmer representatives have also received training in governance, financial management and leadership.

The emphasis on institutional strengthening reflects a wider recognition that sustainable financial inclusion depends as much on capable local organisations as it does on access to capital.

That message resonated throughout the AMFIU gathering.

AMFIU Board Chairperson James Onyutta said microfinance institutions continue to play an indispensable role in serving low-income households, rural communities and microenterprises that remain underserved by conventional banking.

Despite economic headwinds, he said, member institutions have continued expanding financial services to vulnerable groups while supporting enterprise development across the country.

Representing the Ministry of Finance, Planning and Economic Development, Commissioner for Financial Services Moses Ogwapus credited the microfinance sector with extending economic opportunities to millions of Ugandans, particularly women, farmers and entrepreneurs who previously had limited access to formal finance.

The latest announcements suggest Uganda’s financial inclusion agenda is entering a new phase. Rather than competing directly for individual customers, commercial banks are increasingly strengthening the community institutions that already command trust in rural areas.

If that model succeeds, the country’s next leap in financial inclusion may not come from building more bank branches—but from empowering the cooperative networks that have quietly become Uganda’s grassroots financial infrastructure.

The post Stanbic Bets on Community Finance to Unlock Uganda’s Next Wave of Economic Growth appeared first on 256 Business News.

For many young Ugandans, the pursuit of wealth has become increasingly urgent. Social media celebrates overnight millionaires, digital investment schemes promise extraordinary returns, and entrepreneurship is often portrayed as the fastest route to financial freedom.

Business leader Charles Mbire believes that narrative is incomplete. Speaking at the inaugural SBG Securities Investor Day in Kampala on June 26, Mbire challenged aspiring entrepreneurs and investors to rethink what truly attracts wealth in today’s economy. His message was simple but unconventional: before building capital, build character.

“Invest in your character and integrity before you invest in business,” Mbire told an attentive audience of investors, policymakers and business leaders.

According to him, the greatest asset a young entrepreneur can possess is no longer land, machinery or even cash. It is credibility.

Contrary to popular perception, in assessing risk, financial institutions, lenders and investors are increasingly looking beyond collateral to evaluate governance, transparency and reputation before committing capital, Mbire said.

Sharing from his personal experience when he set out looking for his first million-dollar loan 29 years ago, Mbire observed that “financial institutions such as Stanbic Bank will always support individuals with a good reputation, a sound business plan and strong governance,” he said.

Mbire also warned against the growing obsession with quick wealth, saying too many Ugandans have lost their savings—and sometimes their freedom—after chasing unrealistic investment returns.

Instead, he encouraged young people to embrace regulated investment opportunities and focus on long-term wealth creation rather than speculative gains.

“Many people have lost fortunes chasing unrealistic returns,” he said. “Young investors should prioritise well‑governed, regulated portfolios that offer stable, long‑term growth.”

His remarks come at a time when Uganda’s investment landscape is expanding beyond traditional saving.

The inaugural Investor Day, organised by SBG Securities, sought to encourage more Ugandans to participate in capital markets by improving financial literacy and exposing investors to professionally managed investment products.

According to Grace Semakula, Chief Executive Officer of SBG Securities, the company’s Umbrella Fund has grown by 391 percent, while Uganda’s collective assets under management have reached UGX 5.6 trillion, signalling growing confidence in regulated investment vehicles.

“Uganda is gradually shifting from saving alone to embracing investment as a pathway to financial independence,” Semakula said.

Financial experts at the forum reinforced Mbire’s message that wealth creation is a long-term discipline rather than a race.

MTN Uganda Chairman Charles Mbire (centre) poses for a photo with Stanbic Uganda Holdings leaders Sam Mwogeza, Grace Semakula and Catherine Poran during the inaugural Investor Day Forum held in Kampala.

Pumla Nabachwa, Lead Economist at the Bank of Uganda, urged young people to make time their greatest investment advantage by saving and investing consistently from an early age instead of postponing financial planning.

Similarly, Daisy Lynda Nabakooza, Director of Supervision and Market Conduct at the Uganda Retirement Benefits Regulatory Authority (URBRA), reminded workers that retirement planning should begin with their first pay cheque. “It is never too early—and never too late—to start planning for retirement,” she said.

Technology is also making investing easier. Sam Mwogeza, Executive Director for Personal and Private Banking at Stanbic Bank Uganda, said digital platforms are helping remove traditional barriers by allowing customers to access investment services more conveniently and participate in capital markets from wherever they are.

“Clients can now access investment services conveniently without visiting multiple branches,” he said. “Our goal is to remove barriers and make investing simple for every Ugandan.”

Taken together, the discussions painted a picture of a financial ecosystem that is evolving alongside a new generation of investors. While technology is widening access and regulated investment products are becoming more accessible, speakers argued that the qualities most likely to determine long-term financial success remain deeply personal.

For young Ugandans eager to build wealth however, Mbire’s message may have been the event’s most enduring takeaway: in a world searching for shortcuts to riches, character remains the one investment that compounds for a lifetime.

The post Charles Mbire’s Cheat Code to Wealth: Why Character, Not Collateral, Matters appeared first on 256 Business News.

Equity Bank Uganda concluded its nationwide School Bridge Financing campaign June 23 with a high-level engagement for school proprietors, administrators and education leaders at Hotel Africana, reaffirming its commitment to strengthening financial resilience across Uganda’s education sector.

The event marked the culmination of months of outreach promoting tailored education financing solutions designed to help schools navigate cash flow challenges while investing in long-term growth. Participants discussed financing opportunities, sector-specific challenges and practical strategies for building more sustainable educational institutions.

The engagement underscored the growing importance of specialised financial products at a time when many schools continue to face mounting operational pressures.

Brian Ddamba Business Development Manager at the Seminar

Uganda’s second school term is now well underway, but many institutions are still grappling with the familiar challenge of meeting day-to-day operational costs while waiting for parents to complete payment of school fees.

Teachers’ salaries, food supplies, scholastic materials, utilities, maintenance and security all require immediate financing, yet fee collections often arrive weeks or even months later.

Public and government-aided schools similarly grapple with delayed capitation grants, while private schools must balance the need for upfront expenditure against the financial realities facing many households, where school fees are increasingly paid in instalments.

Schools are also contending with rising utility costs, stricter regulatory compliance requirements, growing enrolment, infrastructure expansion needs and sustained pressure to improve academic performance in national examinations.

Teacher retention remains another persistent concern, particularly in rural communities where qualified educators often relocate to urban centres in search of better remuneration.

Infrastructure gaps continue to compound these challenges, with many schools struggling to finance new classrooms, dormitories, science laboratories, libraries, sanitation facilities and technology upgrades needed to deliver quality education.

Against this backdrop, access to timely and affordable financing has become increasingly critical.

Through its School Bridge Financing facility, Equity Bank Uganda provides unsecured loans of up to UGX 500 million, enabling schools to maintain operations during temporary cash flow shortages without disrupting learning.

The financing can be used to meet essential operational requirements including staff salaries, food supplies, scholastic materials, infrastructure maintenance, repairs, security improvements and other day-to-day expenses.

The facility is complemented by Asset Financing of up to UGX 1.6 billion, allowing schools to acquire buses, backup generators, computers, ICT equipment and science laboratory infrastructure.

Institutions planning long-term expansion can also access School Improvement and Expansion Loans to finance the construction of classrooms, dormitories, administration blocks, libraries and other facilities required to accommodate growing student populations.

Recognising the lasting effects of disruptions such as the COVID-19 pandemic, the bank has also extended recovery financing to assist schools in rebuilding and stabilising their operations.

Beyond lending, Equity Bank Uganda offers digital banking solutions that simplify school fee collection through mobile banking, agency banking and digital payment platforms, enabling real-time transactions, improved accountability and greater administrative efficiency.

Schools also have access to insurance solutions that protect infrastructure, financed assets and institutional operations against unforeseen risks.

Through its Public Sector and Social Investments (PSSI) initiatives, the bank further supports school proprietors and administrators through capacity-building programmes covering financial management, budgeting, governance, cash flow forecasting, record-keeping and risk management.

These programmes are intended to strengthen institutional sustainability and equip education leaders with the skills required to manage increasingly complex educational enterprises.

Support extends beyond schools themselves.

Parents and guardians can access School Fees Loans of up to UGX 5 million per child, enabling learners to report to school on time while allowing families to repay through flexible arrangements aligned to their income cycles.

The facility also helps schools receive more predictable fee collections, easing financial pressure and improving operational planning.

As Uganda continues to prioritise investment in human capital, strengthening access to education finance is becoming an increasingly important pillar of educational resilience.

The June 23 engagement concluded the School Bridge Financing campaign, but it also reinforced a broader message: sustainable education depends not only on quality teaching and infrastructure, but also on reliable financial systems that enable schools, parents and learners to plan with confidence despite short-term financial pressures.

The post Equity Bank Concludes School Bridge Financing Campaign with Education Sector Forum appeared first on 256 Business News.

For decades, cocoa was considered an unlikely crop for northern Uganda. The prevailing view among farmers and agricultural experts was that Lira’s climate was too dry to support a crop traditionally associated with the wetter regions of western Uganda and West Africa.

That perception is now being tested by Joseph Ogwal Oyuk, a farmer and director of Acanga Farm Estates in Lira City West, who is using solar-powered irrigation to demonstrate that cocoa can thrive in the region under the right conditions.

The experiment is gaining attention as farmers search for alternatives to traditional cash crops such as cotton and oilseeds, whose returns have often been constrained by price volatility and limited value addition.

On his farm, Ogwal has dedicated an acre to cocoa production and established a nursery with more than 30,000 seedlings destined for farmers across the Lango sub-region.

His journey with cocoa began more than two decades ago but was hampered by a persistent shortage of water.

“When I started, I used a watering can, then a treadle pump, then a petrol pump,” Ogwal said. “We carried water manually from the source. Workers got exhausted, the process was slow, and costs were high.”

The economics changed when he adopted a solar-powered irrigation system that pumps water directly to the nursery and fields.

According to Ogwal, tasks that previously consumed hours of labour can now be completed in minutes, allowing the farm to double nursery production from 15,000 to 30,000 seedlings.

The irrigation system was supplied by Tulima Solar through a Results-Based Financing programme supported by Equity Bank Uganda, an arrangement designed to make productive-use renewable energy technologies more accessible to farmers and small businesses.

The increase in seedling production comes at a time when interest in cocoa is growing. Rising prices have made the crop increasingly attractive to farmers looking for higher-value agricultural enterprises.

Industry players say the experience in Lira highlights how irrigation and climate-smart farming technologies are expanding the range of crops that can be grown outside their traditional production zones.

For Ogwal, the opportunity extends beyond his own farm.

Through a field training centre established at Acanga Farm Estates, he provides practical instruction on cocoa production and farm management. More than 200 farmers have already received seedlings and technical support.

“People come here to learn how to grow cocoa profitably,” he said.

The farm has evolved into a demonstration site for agricultural diversification, showing how technology can reduce production risks and unlock new opportunities for farmers.

Equity Bank Uganda says its support for renewable energy financing is intended to increase access to technologies that improve productivity and rural incomes.

“Our vision is a Uganda where every household and business can access clean energy without taking on unmanageable debt,” said Virginia Semakula, the bank’s Manager for Energy, Environment and Climate Change.

Ogwal is now planning a major expansion, targeting production of up to 300,000 cocoa seedlings and increasing the acreage under cultivation.

If successful, the initiative could accelerate the emergence of cocoa as a commercial crop in a region where it was once considered impossible to grow, creating a new income stream for farmers and further diversifying northern Uganda’s agricultural economy.

The post Solar irrigation helping cocoa take root in northern Uganda appeared first on 256 Business News.

As schools across Uganda grapple with rising operational costs, a growing number are turning to energy-efficient cooking technologies to reduce expenditure, protect the environment and improve working conditions for staff.

One example is St. Andrew’s Secondary School in Rubindi, Mbarara District, where a shift from traditional firewood-based cooking to energy-saving cookstoves is expected to save the institution about UGX11 million annually.

The school, which serves hundreds of learners and staff, had for years relied on conventional wood-fired stoves that consumed large quantities of firewood and exposed kitchen workers to smoke-filled conditions.

According to school administrators, the institution previously used about 45 truckloads of firewood annually at a cost of approximately UGX18 million. Following the installation of improved energy-saving cookstoves and the redesign of its kitchen facilities, annual consumption is projected to fall to about 18 truckloads, reducing expenditure to roughly UGX7.2 million.

The change translates into annual savings of nearly UGX11 million, with school leaders expecting further efficiencies as the system is optimised.

Robert Bayo-the head Teacher of St. Andrews Secondary School Rubindi

“We used 15 lorries of firewood every term, spending UGX400,000 per lorry. This method was inefficient both financially and in terms of the health effects on staff working in the kitchen,” said Robert Bayo, the Head Teacher of St. Andrew’s Secondary School.

“Starting this term, we have only used three lorries and we project to use only six lorries for the entire term. The results have been encouraging.”

The project involved reconstructing the school’s kitchen, installing built-in energy-saving stoves and redesigning the cooking area to improve ventilation and cleanliness.

Beyond reducing fuel costs, the new system has significantly lowered smoke emissions, heat levels and ash production, creating a healthier working environment for cooks.

The Parents Teacher Association says the financial benefits extend beyond energy savings.

“Reduction in the budget spent on firewood means the school can redirect resources to other development projects,” said Timothy, the PTA chairman.

The school has also reduced pressure on its own woodlot, which had previously been harvested for cooking fuel.

Education sector stakeholders say such investments are becoming increasingly important as schools seek ways to manage operational costs without increasing the financial burden on parents.

The transition was supported through the Results-Based Financing (RBF) programme, a partnership involving Equity Bank Uganda, Energising Development (EnDev) Uganda and GIZ.

The programme provides incentives to suppliers of clean cooking and renewable energy technologies, helping institutions overcome the high upfront cost of adoption.

Virginia Semakula, Equity Bank Uganda’s Manager for Energy, Environment and Climate Change, said the initiative is helping schools, households and businesses reduce dependence on traditional fuels while lowering operating expenses.

“Many schools have reduced dependence on charcoal, firewood and kerosene by adopting cleaner cooking solutions. Businesses and households are also embracing solar-powered systems that help reduce energy costs and improve productivity,” she said.

The experience at St. Andrew’s reflects a wider trend emerging across Uganda’s education sector, where schools are increasingly viewing energy efficiency not simply as an environmental initiative, but as a financial management strategy.

With fuel costs continuing to rise and pressure mounting to preserve forest resources, clean cooking technologies are gaining recognition as a practical tool for improving school finances while advancing sustainability goals.

The post Smart kitchens cut school fuel bills by two-thirds as education sector seeks cost savings appeared first on 256 Business News.

A coalition of Ugandan civil society organisations has launched a new campaign calling for debt justice, arguing that rising debt obligations are increasingly squeezing public spending on healthcare, education, agriculture and social protection while exposing deeper inequalities in the global financial system.

The Freedom from Debt Campaign, launched by the Civil Society Budget Advocacy Group (CSBAG) in partnership with AHF Uganda Cares, SEATINI Uganda and the Uganda Debt Network, brings Uganda into a broader African movement seeking reforms in both domestic debt management and the international lending architecture.

Campaigners say the initiative comes at a critical moment for Uganda, whose public debt is projected to reach approximately UGX130 trillion in the 2026/27 financial year, while debt servicing obligations are expected to exceed UGX33.6 trillion or 40pc of budget allocations.

According to the coalition, debt servicing is increasingly competing with investments in sectors that directly affect citizens’ welfare.

“This is not merely a debt crisis; it is a development crisis,” CSBAG says. “Every dollar spent servicing unsustainable debt is a dollar unavailable for medicines in hospitals, classrooms for children, agricultural support for farmers, climate adaptation, infrastructure development, social protection, and job creation for young people.”

The campaign is being launched against the backdrop of what activists describe as an unprecedented global debt burden.

According to figures cited by CSBAG, global public debt reached USD102 trillion in 2024, while developing countries spent more than USD1.4 trillion servicing external debt during the same period.

Africa has been particularly affected. The continent’s external debt now exceeds USD650 billion, with annual debt servicing costs estimated at nearly USD90 billion.

More than 25 African countries spend more on debt repayments than on healthcare according to CSBAG.

For Uganda, campaigners argue that while the country is not yet classified as being in debt distress, the rapid growth in debt obligations raises serious concerns about fiscal sustainability and the state’s ability to finance essential services.

Debt servicing is projected to consume nearly 40 percent of domestic revenue collections in the coming financial year.

Campaign leaders were careful to stress that they are not opposed to borrowing itself.

“The campaign is not against borrowing. It is a call for social justice, equity, responsible borrowing, transparency, accountability and prudent debt management,” said Henry Magala, Country Director of AHF Uganda Cares.

Magala noted that debt can remain an important development tool if managed properly and directed toward productive investments that generate measurable returns for citizens.

He argued that borrowed resources must translate into tangible improvements in healthcare, education, agriculture, social protection and employment creation.

CSBAG Executive Director Julius Mukunda echoed the same position but questioned the fairness of current lending arrangements facing developing countries.

“If you are borrowing externally at 8pc, and the same market is providing loans to other countries at less than 3pc, that is already unfair for a country like Uganda,” Mukunda said.

“We want a better market where if Uganda goes to borrow, it can borrow under almost the same terms as other countries. That is very critical.”

Mukunda added that debt should be directed toward productive investments that improve living standards.

“We can reduce debt dependence by ensuring that the current debt we have acquired delivers the things we want,” he said.

Beyond the size of Uganda’s debt burden, the campaign highlights concerns over how borrowed funds are utilised.

Campaigners point to repeated findings by the Auditor General showing project delays, low loan absorption rates, cost overruns and weak implementation of debt-financed projects.

According to the coalition, Uganda paid approximately UGX73.9 billion in commitment fees on undisbursed external loans during the 2023/24 financial year.

The campaign argues that the challenge is therefore not simply how much government borrows, but whether borrowed resources generate sufficient economic and social returns.

“Debt should finance roads, hospitals, schools, irrigation systems, energy infrastructure, and productive investments that transform livelihoods,” CSBAG says. “It should not finance inefficiencies, avoidable delays, and poor project management.”

The coalition is also calling for greater transparency around borrowing decisions, including public access to loan agreements, debt sustainability assessments and project performance reports.

A central pillar of the campaign is the concept of “debt justice” — the idea that responsibility for the debt crisis does not rest solely with borrowing governments.

Campaigners argue that developing countries face disproportionately high borrowing costs, limited access to concessional financing and debt restructuring mechanisms that are often heavily influenced by creditor interests.

“Debt Justice requires accountability from both borrowers and lenders,” the campaign argues.

The coalition says African countries frequently borrow to respond to climate-related disasters, food insecurity and public health emergencies despite contributing little to the causes of those crises.

“Africa should not have to choose between paying creditors and achieving development,” the campaign declares. “Development must come before debt.”

Among the reforms being advocated are the establishment of a Borrowers’ Forum to strengthen collective bargaining power among debtor nations, automatic debt-service pauses during public health emergencies and climate disasters, and expanded debt-for-development swaps that redirect repayment resources into healthcare, education and infrastructure.

The campaign is also supporting proposals for a one percent global artificial intelligence capital levy dedicated to debt relief and financing essential public goods.

At its core, organisers say, the Freedom from Debt Campaign seeks to place citizens at the centre of debt governance.

Public debt, they argue, ultimately creates obligations that are borne by taxpayers and future generations, making transparency and public participation essential.

The coalition plans to conduct debt sustainability research, monitor debt-financed projects, produce citizen-friendly debt information and engage Parliament on debt oversight.

“We believe that debt should be a tool for development rather than a barrier to development,” the campaign states.

As Uganda’s debt trajectory continues to climb, campaigners hope the initiative will shift public debate away from abstract fiscal statistics and toward the real-world consequences of borrowing decisions.

The post Uganda joins continental push for debt justice as public debt soars to UGX130 trillion appeared first on 256 Business News.

The Bank of Uganda (BoU) has announced sweeping changes to cheque transaction limits and over-the-counter (OTC) cash withdrawals as part of its strategy to accelerate the country’s transition towards a digital-first financial system.

In a circular dated May 29, 2026, and addressed to chief executives of commercial banks, credit institutions and microfinance deposit-taking institutions, the central bank said it would significantly reduce interbank cheque value limits while introducing new caps on cash withdrawals conducted at banking halls.

According to the directive, the maximum value for interbank cheques denominated in Uganda shillings will be reduced by half, from UGX 10 million to UGX 5 million. Similar reductions have been applied to foreign currency cheques, with limits for US dollar, Euro, Pound Sterling and Kenyan Shilling transactions also cut by 50 percent.

The Bank of Uganda said the measures are aligned with its e-payments strategy and broader national digitalisation agenda, which seeks to promote a cash-lite economy and encourage greater use of secure electronic payment channels.

“These interventions align with our strategic commitment to fostering a modern, digital-first financial landscape by encouraging a shift from traditional paper-based instruments to secure electronic channels,” the circular states.

The new framework also introduces cash withdrawal limits for customers accessing funds directly from bank counters. Individual account holders will be restricted to daily cash withdrawals of UGX 50 million and weekly withdrawals of UGX 250 million. Corporate and business accounts will face daily limits of UGX 500 million and weekly caps of UGX 2.5 billion.

Industry observers say the move reflects growing efforts by regulators to reduce the costs and risks associated with cash handling while increasing the adoption of electronic transfers, mobile money, real-time payments and other digital financial services.

The central bank has provided a transition period before implementation. The revised cheque limits and cash withdrawal caps will take effect on January 1, 2027, allowing banks and customers time to adjust and clear existing instruments.

The reforms are expected to have significant implications for businesses that still rely heavily on cheque payments and large cash transactions, while potentially accelerating Uganda’s shift towards a more digitised payments ecosystem.

The post Bank of Uganda slashes cheque limits, caps cash withdrawals in push for digital payments appeared first on 256 Business News.

The Bank of Uganda has approved the sale of Standard Chartered Bank Uganda’s Wealth and Retail Banking (WRB) business to Absa Bank Uganda, clearing a key regulatory hurdle in a transaction expected to reshape competition in Uganda’s retail banking sector.

The approval allows Absa Bank Uganda to acquire Standard Chartered’s retail and wealth banking portfolio while enabling Standard Chartered to sharpen its focus on corporate and investment banking, in line with its global strategy.

The transaction represents one of the most significant developments in Uganda’s banking industry in recent years and reflects growing confidence in the country’s financial sector and regulatory framework.

Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani said the approval validates the role both institutions have played in Uganda’s banking industry while supporting the bank’s long-term strategic direction.

“This approval is a testament to the strength and contribution of both institutions to Uganda’s banking industry. We are proud of the retail franchise we have built and are confident that Absa is well positioned to take it forward,” said Rughani.

He stressed that the transaction does not signal Standard Chartered’s exit from Uganda, noting that the bank remains committed to supporting economic growth through trade facilitation, capital mobilisation and advisory services.

“Our commitment to Uganda remains unchanged. We will continue to support growth by facilitating trade, mobilising capital and advising clients across key sectors of the economy,” he added.

For Absa, the acquisition strengthens its position in the retail and wealth banking segments while expanding its customer base and market reach.

Absa Bank Uganda Managing Director David Wandera described the regulatory approval as a major milestone for both the transaction and the wider banking sector.

“This approval is a significant milestone and underscores confidence in Uganda’s banking system as well as Absa’s long-term commitment to the market,” Wandera said.

“Drawing from our experience during the Barclays transition, we have the capability to manage complex integrations while ensuring customer continuity and operational stability.”

The acquisition comes at a time when Absa is posting strong financial performance. The bank recently reported profit after tax of UGX 222 billion for 2025, up from UGX 178 billion the previous year, while customer deposits rose to UGX 4.66 trillion and total assets surpassed UGX 7 trillion.

Industry analysts say the acquisition could strengthen Absa’s presence among affluent customers and deepen its wealth management proposition while enhancing its ability to leverage its growing deposit base.

The deal also marks the next phase of Standard Chartered’s strategic repositioning in Uganda. Rather than competing aggressively in retail banking, the lender is expected to concentrate resources on corporate banking, trade finance, treasury services, project financing and investment banking.

The bank has increasingly focused on connecting Ugandan businesses and institutions to international capital and trade flows, while supporting major investments in infrastructure, energy and other strategic sectors.

Both banks said there will be no immediate changes for customers, with services continuing through existing channels during the transition period.

Any future changes, they said, will be communicated in accordance with regulatory requirements and customer protection guidelines.

The transaction will take effect once the remaining conditions under the sale agreement have been fulfilled, with both institutions continuing to engage regulators and stakeholders throughout the process.

Beyond the transfer of a retail portfolio, the deal highlights a broader trend within Uganda’s banking sector, where institutions are increasingly specialising around their core strengths while pursuing scale in strategically important market segments.

For Absa, that means expanding its retail and wealth banking footprint. For Standard Chartered, it means deepening its role as a corporate and investment banking partner in Uganda’s evolving economy.

The post BoU approves StanChart retail business sale to Absa in major banking sector shift appeared first on 256 Business News.