Equity Bank, agriculture ministry roll out National Oil Palm Project in Busoga

October 11, 2025 in Companies, Land & Agriculture by Editor

The initiative marks a major step in Uganda’s agricultural diversification drive, bringing structured credit, modern farming systems, and long-term income prospects to smallholders across the Busoga sub-region

The National Oil Palm Project  has officially expanded into the Busoga sub-region, with the government and Equity Bank launching the initiative in Mayuge District to boost household incomes and transform rural livelihoods.

The launch event, held at the Mayuge District Headquarters on Ocotber 10, was presided over by Fred Bwino Kyakulaga, the junior minister for Agriculture, Animal Industry and Fisheries, alongside Catherine Psomgen, Equity Bank’s Director for Public Sector and Social Investment.

Under the arrangement, the Government of Uganda appointed Equity Bank as the financial intermediary to manage and disburse project funds to farmers, while also providing financial literacy and capacity-building support. The facility aims to equip smallholder farmers with credit, inputs, and technical assistance to ensure sustainable oil palm production.

“Equity is employing modern banking systems to track every transaction, verify beneficiaries, and ensure funds reach genuine oil palm farmers in record time,” Ms. Psomgen told reporters at the launch.

Over the past two years, the bank has disbursed UGX 1.2 billion to 896 farmers, all of whom have been trained in proper agronomic practices, including land preparation and pest control, and supported with fertilizers and ready-to-plant seedlings. Oil palm seedlings take about 18 months to mature before planting.

Each participating farmer or farmer group is required to have at least five hectares of land to qualify for UGX 25 million in credit, while those with smaller holdings receive proportionate financing. To safeguard funds and ensure proper use, the Ministry of Agriculture pays suppliers directly for inputs such as pesticides and fertilisers, with the remainder deposited into farmers’ accounts under bank supervision.

The initiative’s first phase will cover Buvuma, Mayuge, Bugiri, and Namayingo districts, with the next rollout expected to reach Kamuli, Iganga, Jinja City, Bugweri, Namutumba, Luuka, and Kaliro by next year.

Minister Kyakulaga described the programme as a turning point for Busoga’s agricultural economy, which has struggled with persistent poverty and land underutilisation.

“This move will go a long way in transforming the people of Busoga from the chronic poverty which has affected them for so long,” he said.

According to the Ministry, Uganda’s domestic market already offers high demand for palm oil used in soap, cosmetics, and other consumer goods. Once production stabilises, each farmer is projected to earn around UGX 2.5 million per month for 25–30 years, marking a long-term income source for rural households.

The Busoga expansion represents a major step in Uganda’s broader strategy to localise palm oil production and reduce reliance on imports, while aligning agricultural finance with commercial banking systems for transparency and impact tracking.