At the heart of Uganda’s push for sustainable development lies a crucial goal — to make agriculture less risky and ensure small and medium-sized enterprises (SMEs) can access climate-conscious financing.
During the Uganda Green Enterprise Finance Accelerator (UGEFA) Green Finance Dialogue 2025 at Mestil Hotel, Kampala, Olivia Mugaba, Head of SMEs at Equity Bank Uganda, reaffirmed the bank’s commitment to building a resilient green economy through partnerships and innovative financing models.
Mugaba explained that Equity Bank’s efforts are anchored in the Africa Resilient Recovery Plan, a continental strategy promoting economic revival through sustainable finance. “For Africa to be truly resilient, we must prioritise financing agriculture,” she said. “However, lending to farmers is risky due to unpredictable weather, market instability, and external shocks — making credit costly and hard to access.”
To overcome these challenges, the bank uses what Mugaba calls a “tri-engine model” — focusing on social impact, investment growth, and sustainability. The sustainability arm connects the bank with partners such as UGEFA, the European Union, and other development agencies that help de-risk agricultural lending through grants, training, and technical support.
“These partnerships allow us to train farmers in sustainable farming, irrigation, post-harvest management, and financial literacy,” Mugaba said. “We are building resilience from the ground up — turning agriculture into a reliable, sustainable enterprise.”
The UGEFA–Equity Bank partnership has been especially impactful. UGEFA identifies and trains promising green enterprises before connecting them to banks for financing. “After UGEFA prepares the businesses, we assess their risks and work together to close any gaps,” Mugaba explained. “This ensures that our financing creates lasting, sustainable results.”
Equity Bank currently supports over 200,000 SMEs in sectors such as agriculture, manufacturing, and renewable energy. Within the UGEFA programme, the bank finances 80 percent of the 120 supported enterprises, cementing its position as a key player in green financing. Mugaba said the bank plans to use its 50-branch network and digital platforms to reach more clients, including those in remote areas.
Mugaba noted that while progress is being made, challenges remain. Many farmers still rely on outdated methods with little focus on soil conservation or climate adaptation. “We need major investment in training and behaviour change to make sustainability part of everyday farming,” she said.
High interest rates on agricultural loans also remain a major barrier. Despite subsidised lending under the Agricultural Credit Facility, many farmers are locked out due to collateral demands and risk perceptions. “Agriculture is risky, which is why some microfinance institutions charge up to 32 percent interest,” Mugaba said. “We must strengthen partnerships with global funds and expand insurance schemes to make credit affordable.”
She also called for stronger public-private partnerships, stressing that sustainability cannot be achieved through scattered efforts. “We need long-term, inclusive partnerships that scale up green initiatives nationwide,” she said.
Market access and infrastructure gaps further hinder progress. “Middlemen still exploit farmers,” Mugaba noted. “We must create direct market channels, improve rural roads, storage facilities, and digital platforms to connect farmers to fair markets.”
Equity Bank plans to deepen its investment in green financing, focusing on digital innovation and financial inclusion for underserved communities.
“Our mission is clear,” Mugaba said. “We’re not just financing businesses — we’re building a sustainable future for Uganda and Africa. Through collaboration, innovation, and inclusive finance, we can turn agriculture into a resilient, green growth engine that supports livelihoods and protects the planet.”
