Business
Agriculture lender seeks to empower micro finance institutions with farming knowledge
Ms. Mona Mugumya, CEO aBi Finance
aBi Finance Limited, a major lender to agribusinesses has revealed plans to build capacity of microfinancial players in understanding the dynamics of the agricultural sector so as to enable them to design appropriate products.
The aBi Finance CEO Mona Muguma Ssebuliba acknowledged the valuable contributions of some microfinance institutions in supporting smallholder farmers and agribusinesses over the past 14 years but noted that financial institutions are slow to meet new market demands.
Speaking at a Stakeholder’s Engagement to recognise key partners committed to supporting Uganda’s smallholder farmers and agribusinesses, Ssebuliba expressed optimism that aBi Finance’s training initiatives will drive appropriate green financing responses from the financial institutions for economic growth, wealth creation and employment opportunities for farmers and other vulnerable groups.
“It is slow, but it is growing. So we need to be patient and that is why for instance with our knowledge partner, Uganda institute of Banking and finance services, we are developing a green finance curriculum because we realized that this training and capacity building is needed ….and it’s needed on a continuous basis,” Ssebuliba said.
Ssebuliba committed that aBi Finance will continue to build their capacity, adding hopefully we will see a lot more uptake and appreciation of the changes in the market.
“Because the financier of today nearly has to be an agronomist, they need to understand Agriculture, they need to understand what is affecting Agriculture, the changes in the climate, and the seasons, so it takes time to appreciate the knowledge,” Ssebuliba stressed.
As a wholesale impact investment company that channels funds to support sustainable development in Uganda’s agricultural sector, since its inception Abi finance Limited has reached out to 2 million beneficiaries through this program.
Now aBi Finance aims to deploy UGX 750 billion between 2024-2028, targeting 83,000 smallholder farmers and agribusinesses, though suitable partners in Northern and Eastern Uganda are still lacking. And of the 83000 the company targets to support 40 % women and 30 % youth’s smallholder farmers and agrobusinesses access funds.
Ssebuliba said that the challenge aBi finance limited is facing, there not being enough partnerships to work with.
We want to work with more institutions and so for us the issue is for them to come on board, to hold hands with us and let’s walk together, so our issue right now is suitable partnerships particularly with people who can go to northern and Eastern Uganda”-she said.
She explains that aBi finance is looking for indigenous institutions within Northern and Eastern Uganda whose capacities can be built to serve because it takes understanding the area intimately in order to serve the clientele there (northern and Eastern Uganda).
The organization collaborates with over 52 financial institutions to enhance resilience through climate change adaptation, mitigation, biodiversity conservation, and social inclusion (reaching the underserved like women, youths and refugees that have no collateral).
The company is working with the Uganda Institute of Banking and Financial Services and the Uganda Microfinance Regulatory Board to develop the capacities of the institutions to improve the service to the demographics that have no collateral.
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