PostBank Grows Agribusiness Lending by 24%

KAMPALA, UGANDA — PostBank Uganda has posted a 24% increase in agribusiness lending over the past year, underscoring its renewed push to support Uganda’s agricultural sector.

Between 2023 and 2024, the bank expanded its agribusiness loan portfolio significantly—thanks to a strategic pivot that now prioritizes entire agricultural value chains and incorporates smarter risk management. The result? Better access to affordable credit for Uganda’s farmers.

“Agriculture is not just an industry—it’s a system,” said Julius Akais, PostBank’s supervisor for agriculture and partnerships. “We’re helping farmers grow, not just survive.”

Value Chain Financing at the Heart of Growth

PostBank’s lending strategy now targets full value chains—especially in key crops such as maize, beans, soybeans, sorghum, and hay. Instead of offering generic loans, the bank is tailoring support to meet the unique demands of each sector.

This includes funding at every stage, from input purchase to harvest and processing.

The result has been a deeper impact in Uganda’s rural farming communities—where nearly 70% of the population depends on agriculture.

Government Partnership Strengthens Lending Muscle

Central to PostBank’s success is its use of the Agriculture Credit Facility (ACF), a government-backed program that de-risks farm lending. Through ACF, the government covers 50% of the lending risk and subsidizes interest payments for qualifying farmers.

This allows PostBank to offer loans at much lower rates, making borrowing more accessible to smallholder and commercial farmers alike.

“This is a game-changer,” said Akais. “Lower interest and risk-sharing mean we can extend support to even the most vulnerable farmers without compromising sustainability.”

Beyond Money: Field Visits and Farmer Support

PostBank isn’t just throwing money at the problem. The bank also conducts field visits, provides technical advice, and phases funding to ensure long-term success.

This hands-on approach helps farmers build resilience, adopt modern practices, and stay financially stable.

Their agribusiness lending isn’t just about profit—it’s also about people and planet. PostBank said it assesses all loans for environmental and social impact, not just financial returns.

Sustainability, the bank insists, remains a guiding principle as it continues to grow its agricultural portfolio.

A Vision for a Modern Farming Economy

With Uganda’s economy still deeply rooted in agriculture, PostBank believes that smarter financing can unlock rural development, food security, and job creation.

As commercial farming gains traction across the country, the bank is positioning itself as a reliable partner—not just a lender.

“Our goal,” said Akais, “is to see farming in Uganda become profitable, dignified, and sustainable. That’s how we’ll transform the economy.”

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