By Kampala Post Reporter
PostBank Uganda was named Best Financial Institution in advancing Agricultural Financing in the country under the Bank of Uganda Agricultural credit facility program. This was revealed during the awards ceremony for the best performing participating financial institutions under the ACF scheme. The award ceremony was held at Kampala Sheraton Hotel on Thursday 30th May 2019. The Minister of Finance Hon. Matia Kasaija was the guest of honor.
Other dignitaries included the Deputy Governor Bank of Uganda, Louis Kasekende, Prof. Mondo Kagonyera, Wilbrod Owori CEO Uganda Bankers Association and CEOs of the participating financial institutions.
According to award organizers (Bank of Uganda), the ceremony was intended to recognize the significant efforts that have been made by different Participating Financial institutions in the operationalization, advancement, and uptake of the ACF funds. In addition, the awards were designed to recognize the efforts of best performers in achieving the scheme objectives while mobilizing support and growth in Agricultural Lending.
Minister Matia Kasaija applauded PostBank Uganda for taking the lead role in advancing agricultural financing to the people of Uganda. PostBank Uganda beat all the participating financial institution to emerge the overall Best performing financial institution in extending credit facilities under the ACF program.
Post Bank also emerged winner in the following categories;
- Winner in having the highest outreach to small borrowers as evidenced by the number of loans disturb used.
- Winner in having the highest National coverage in terms of the number of loans Disbursed at March 31st 2019
- Winner in having the highest Absorption rate in terms of Number if loans Disbursed
- Winner in showing interest in the scheme as evidenced by the number of loans applications submitted to Bank of Uganda as at 31st March 2019
Mr. Benon Rukundo the Executive Director Credit and Business growth said that the value of loans disbursed under the ACF scheme total to 26,749,278,627 UGX. He further noted that agriculture lending takes 25% of the bank’s loan portfolio. This implies that the bank is focussing on consolidating as a preferred financial institution in agriculture lending.
ACF was set up by the Government of Uganda in partnership with Commercial Banks, UDB and MDIs, and Credit Institutions, all referred to as Participating Financial Institutions(PFIs). The scheme’s operations started in 2009, with the aim of facilitating the provision of medium and long term financing to projects engaged in Agriculture, Agro-processing, and mechanization, focusing on commercialization and value addition.
Loans under ACF are disbursed to Farmers and Agro processors through the PFIs at more favorable terms that are usually available under conventional loans. The scheme is administered by BoU and its operations guided by an MoU signed by all stakeholders. Uganda Bankers Association has signed on behalf of Banks and the other institutions signed separately.
The scheme operates on a refinance basis in that the PFIs disburse all the loan amount required by a client and seek reimbursement from BoU.