The Agricultural Credit Facility (ACF) was set up by the Government of Uganda (GoU) in partnership with Commercial Banks, Uganda Development Bank Ltd (UDBL), Micro Deposit Taking Institutions (MDIs) and Credit Institutions all referred to as Participating Financial Institutions (PFIs). The Scheme’s operations started in October 2009, with the aim of facilitating the provision of medium and long term financing to projects engaged in Agriculture and Agro processing, focusing mainly on commercialization and value addition.

Loans under the ACF are disbursed to farmers and agro-processors through the PFIs at more favorable terms than are usually available under conventional loans. The scheme is administered by the Bank of Uganda (BoU) and its operations are guided by the Memorandum of Understanding (MoU) signed by all the stakeholders. The GoU is represented by the Ministry of Finance, Planning and Economic Development (MFPED). The scheme operates on a refinance basis in that the PFIs disburse all the loan amount required by a client and seek for a re-imbursement from BOU.

Terms &Conditions of Getting Loan

Sub-loan amounts are determined on the basis of assessment and appraisal of project costs and genuine credit needs in accordance with the lending policy of the PFI and the ACF Memorandum of Understanding. The loans are designated in Uganda shillings. The PFIs disburse the total loan amount (100%) to the final borrower (Sub-borrower) on the following terms:

1. Loan amount

The maximum loan amount to a single borrower is up to Shs.2.1billion. However, this amount can be increased up to Shs.5billion on a case by case basis (for eligible projects that add significant value to the Agriculture sector and the economy as a whole). There is no designated minimum loan amount to the final beneficiary (farmer/ agro-processor) but BoU can only reimburse a minimum of Shs 10million to the PFIs.



Objectives of the Loan

The main objective of the ACF is to promote commercialization of Agriculture through provision of medium and long term financing to projects engaged in agriculture, agro processing, modernization and mechanization.

The Origial copy of MOU Scanned

The Agricultural Credit Facility Brocure

Brief to Clients on ACF

Collateral Requirements

The primary security for the credit facilities is the machinery and equipment financed, where applicable, and any other marketable securities provided by the borrower/final beneficiary. ReadMore

Eligibility for Refinance/Sub Loans


Eligible projects include acquisition of agricultural machinery, post harvest handling equipment, storage facilities, agro processing, mechanization and any other related agricultural and agro-processing machinery and equipment.


Financing the Grain Trade

The scheme shall also provide financing for Working capital and infrastructure for projects engaged in grain trading. The terms will be as follows. ReadMore

Eligible Purposes for Sub Loans

The Following is the Criteria for Eligible Purposes 


The Scheme shall not be used for financing working capital for purchase of land, forestry, refinancing existing loan facilities and trading in agricultural commodities with the exception of grain. 

Procedure of Accessing the  Loan

The Procedure for Acquiring the Agricultural Credit Facility Loan is as follows  ReadMore