Agricultural MSME Financing in Uganda: A Response to COVID-19
The agricultural sector is the backbone of Uganda’s economy. However, access to finance for these MSMEs is still at risk from market price fluctuations, low market access for agricultural produce, lack of collateral and a significant informal sector.
The challenges also include one of the largest youth populations in the world and their exodus from rural to urban areas. Women are also constrained in accessing finance by a lack of land and property ownership, among other issues.
This case study looks at the current state of financing for the agricultural sector in Uganda, highlighting the initiatives being taken to overcome the challenges presented by the COVID-19 pandemic.