Agriculture financing has been a big challenge for the microfinance industry because of the various risks associated with it. However, recent years have seen an increase in the number of MFIs, donors and wholesale lenders interested in promoting agriculture financing. Uganda, being a majorly agricultural based country, there is no way this sector can be ignored.
A number of studies to improve financing in this sector have been undertaken and AMFIU has added to the knowledge of agriculture financing by conducting a study of agricultural products offered by the microfinance institutions in Uganda and developed a product catalogue that can be accessed by stakeholders. Additionally, a product development tool has been created to assist MFIs in developing tailored financing products for agriculture.
One of the major challenges identified through the various studies AMFIU has conducted is the poor record keeping practices by small scale farmers. To address this, AMFIU with support from USAID/Feed the Future – ISS Activity, AMFIU developed a farm record keeping module for MFIs/SACCOs to train their clients and a simplified record book meant for the clients of members to improve farm record keeping. These resources also include modules on financial literacy and entrepreneurship, which are meant to enhance the entrepreneurship skills of the clients of our members and also provide them with information that will making informed financial decisions.
The impact of these initiatives is already being felt, with over 3000 smallholder farmers trained in record-keeping best practices. Institutions across the sector are embracing these innovations, ensuring that smallholder farmers are equipped with the tools and knowledge needed to access vital financial support