Uganda’s Parliament has approved a proposal to borrow up to EUR 168,976,354 from UK Export Finance (UKEF) and Citibank to finance Phase II of the Solar Powered Irrigation System Project, aimed at expanding irrigation infrastructure and boosting agricultural productivity, particularly in coffee-growing regions.

According to the Finance Minister, Henry Musasizi, the project will support the development of 427 solar-powered irrigation systems across the country. The initiative is designed to enhance rural incomes by increasing agricultural production and productivity through irrigated farming, with a strong focus on coffee cultivation.

The project targets 126 districts in Uganda and is expected to contribute significantly to improving yields in the coffee sector by providing reliable water supply for irrigation. This comes at a time when climate change continues to negatively affect rainfall patterns and agricultural output.

Musasizi noted that Phase I of the project is nearly complete at 99% physical progress, with 434 irrigation systems already developed nationwide. These systems have reportedly delivered measurable economic benefits across the country.

He further stated that the earlier phase has improved water security and agricultural productivity for approximately 206,465 households, benefiting a total population of about 908,447 people across Uganda.

Justifying the expansion into Phase II, the Minister highlighted the increasing impact of climate change, which has reduced available water resources for farming and caused prolonged dry seasons. He warned that many farmers are losing crops, affecting household incomes and livelihoods.

Phase II of the project is expected to directly benefit about 2,562 households, translating to approximately 11,785 direct beneficiaries.

The initiative will also strengthen existing agricultural extension services at sub-county, parish, and district levels. Implementation will be carried out through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and its extension programs, including the Coffee Department.

The government says the expanded irrigation investment is intended to build long-term resilience in Uganda’s agricultural sector while ensuring stable coffee production despite worsening climate conditions.