District leaders, councillors, and hundreds of farmers gathered at the Mayuge District Headquarters on Friday for the official launch of the National Oil Palm Project, a major government initiative aimed at transforming livelihoods in the Busoga sub-region.
The ceremony was presided over by Hon. Fred Bwino Kyakulaga, Minister of State for Agriculture, Animal Industry and Fisheries, alongside Catherine Psomgen, Equity Bank’s Director for Public Sector and Social Investment.
Under the project, the Government of Uganda has partnered with Equity Bank to manage the project’s credit facility. The bank will not only disburse funds but also offer financial literacy, capacity-building, and risk management support to smallholder farmers.
“Equity is employing modern banking systems to track every transaction, verify beneficiaries, and ensure that funds reach genuine oil palm farmers promptly,” said Psomgen during the launch.
The bank revealed that within two years, 896 farmers have already benefited from the programme, accessing funds worth Shs1.2 billion. Each beneficiary has received quality seedlings, pesticides, fertilisers, and training in proper cultivation techniques.
Oil palm seedlings take 18 months to mature before planting, marking a significant long-term investment for participating farmers. According to Kyakulaga, the initiative will play a key role in tackling poverty across Busoga.
“This project will go a long way in transforming the people of Busoga from the chronic poverty that has held them back for so long,” he said.
Currently in Phase One, the project covers Buvuma, Mayuge, Bugiri, and Namayimba districts. The next phase will expand to Kamuli, Iganga, Jinja City, Bugweri, Namutumba, Luuka, and Kaliro in 2026.
To qualify, individual farmers or groups must have at least five hectares of land, entitling them to a Shs25 million facility. Those with smaller holdings receive proportional funding.
However, most funds are channelled through the bank to approved suppliers who provide inputs such as fertilisers, pesticides, and extension services—ensuring accountability and proper utilisation of resources.
Kyakulaga further noted that Uganda has a strong domestic market for palm oil and its by-products, including soap, cosmetics, and food processing.
“At harvest, each farmer will earn an estimated Shs2.5 million monthly for up to 25–30 years. This project is a sustainable solution to Busoga’s poverty and unemployment challenges,” he said.
