Stanbic Bank Uganda is helping to reduce the financing gap in the agribusiness sector.

What is the role of Stanbic Bank Uganda in the agribusiness sector?

Stanbic Bank Uganda’s agribusiness segment works with all customers within the agriculture space. We look at the value chain from input suppliers, smallholder farmers, aggregators, and processors. We also engage with non-government organizations (NGOs), development institutions and ministry agencies working together to make a difference. Our role is running through that whole value chain to understand the needs of different actors and develop solutions to meet the requirements. We ensure that the solutions help them achieve their needs, and in case they require long term support, we work and walk with them along that journey.

How is the bank facilitating access to finance for the agribusiness sector? 

The bank has several initiatives in place to facilitate access to finance for the agribusiness sector.

First, we’ve got a new initiative called the One Farm platform. Here, we partner with Agri-techs, who collect data from farmers and agribusinesses, analyze it to understand their requirements and provide solutions through the platform. Some of the services offered include input financing, agronomy training, insurance and information on markets. This initiative has helped to improve financial inclusion for several actors in the agribusiness value chain.

The bank has come together with several funding partners to provide affordable loans to Savings Credit and Cooperative Societies (SACCOs) and farmer groups.  SACCOs receiving these funds can offer affordable loans to their members as well. We are also helping the SACCOs and farmer groups digitize records for a faster lending process.  Funding partners include Agricultural Business Initiative (aBi), International Fund for Agricultural Development (IFAD) and United Nations Conference on Trade and Development (UNCTAD).

The third initiative is through the bank’s conventional offerings, which cut across the different value chain players from actual farmers, input providers to processors. Essentially, we have short-term and long-term loans, invoice discounting, stock financing, and versatile asset financing. We also have the Flexi pay wallet that enables users to receive and pay for services and commodities from one electronic wallet to another at no charge.

What can SMEs do to overcome disruptions resulting from the pandemic effects?

We all understand the impact of the pandemic, and we need to protect ourselves and keep safe. It means we have to go into the digital marketplace. Embracing digital tools will keep you safe and enable you to reach more customers than opting for face to face interactions.

Suppose businesses want to last and withstand the pandemic effects. In this case, they need good business plans, financial records and a strategy to follow through during this period. It will ease access to financing that they can use for operations to adapt to the current and future changes.

Financial institutions also need to play more in this space by supporting SMEs prepare the necessary records and plans to access the financing required.

For more information and access to Stanbic Bank’s Agri-banking Team;

Call: 0800250250

WhatsApp: 0770588623

Website: www.stanbic.co.ug

Visit any of our over 60 branches countrywide!