Farmers have started to reap the benefits of the government’s lifting of movement restrictions, new data shows.
According to data by the Uganda Bureau of Statistics, food prices have been increasing over the past months, helped by the resumption of people’s movement.
In September for example the food crop price index, which measures changes in food prices, recorded a 1.2% rise compared to a similar rise in August 2020.
The increase in the Monthly Headline Inflation is attributed to the Food Crops and Related items Inflation that rose by 1.2 percent in September 2020 compared to 1.2 percent rise in August 2020.
The increase in Monthly Food Crops and related Items Inflation was due to Fruits Inflation that went up by 6.2 percent in September 2020 compared to the 4.6 percent rise recorded in August 2020.
Even better changes were witnessed the previous months of June and July according to UBOS data which showed that food prices improved by 5% in the month of June.
The positive changes in prices is a welcome sign not only for the farmers but also to bankers who have lent to farmers.
Evans Nakhokho the Chief Manager Agribusiness at Centenary Bank argues that the changes in prices is a positive thing as it points to improving economic sentiments and generally the entire economy.
Speaking at a thought-leaders forum hosted by Centenary Bank under the theme: Interventions for Agribusiness Development, Nakhokho that; “Financing plays an instrumental role in boosting agricultural activities.
Nakhokho adds that the structured ecosystems that focuses on both financial and non-financial services has enaeebled utilization of credit extended.
“This year, we have disbursed close to 600 billion shillings of which 60% has
“Beyond the financing, we have offered guidance to our customers in relation to managing their credit and how this can be rightly invested for the desired return on investment,” Nakhokho explained.
Mona Ssebuliba, the Chief Operating Officer Agricultural Business Initiative (aBi) Finannce Limited Mona Ssebuliba revealed that the compnay has focused on stabilizing and strengthening Financial Institutions to ensure that agribusiness financing is supported.
“Key lessons have been drawn, which the farmers have to adjust to not limited to; the ability to swiftly adapt to improved business models, digitizing for improved resilience, business monitoring, putting in place business continuity plans for the unexpected occurrences, have a plan to guide prompt decision making, among others which are designed to manage any potential risk that might pose a threat to the business,” Ssebuliba noted.