Mayuge, Uganda – Equity Bank, in partnership with the Ministry of Agriculture, Animal Industry and Fisheries, has officially launched the National Oil Palm Project aimed at transforming the agricultural landscape and combating poverty in the Busoga sub-region.
The ceremony was presided over by Hon. Fred Bwino Kyakulaga, the State Minister for Agriculture, Animal Industry and Fisheries, alongside Ms. Catherine Psomgen, Equity Bank’s Director for Public Sector and Social Investment.
As the designated financial partner for the project, Equity Bank has been entrusted with managing the project’s credit facility. In addition to disbursing funds, the Bank is providing financial literacy and investment training to smallholder farmers. This includes risk-reducing enablers such as improved agricultural practices, modern financial solutions, and close monitoring of fund usage.
Oil palm seedlings take approximately 18 months to mature before planting. According to Ms. Psomgen, Equity Bank has already supported 896 farmers with over UGX 1.2 billion in funding over the past two years. These farmers have received hands-on training in land preparation, including how to dig proper planting holes, and have been supplied with pesticides, fertilizers, and ready-to-plant seedlings.
“Equity is leveraging modern banking systems to ensure transparency, trace every transaction, verify beneficiaries, and guarantee that funds reach genuine oil palm farmers efficiently,” Ms. Psomgen told the press during the launch.
Minister Kyakulaga praised the initiative, stating, “This project is a game-changer. It will help lift the people of Busoga out of chronic poverty that has plagued the region for decades.”
The National Oil Palm Project is currently in its first phase, covering Buvuma, Mayuge, Bugiri, and Namayimba. The second phase, expected to roll out next year, will expand into Kamuli, Iganga, Jinja City, Bugweri, Namutumba, Luuka, and Kaliro districts.
To qualify for the funding, individual farmers or farmer groups must have at least five hectares of land. Each qualifying applicant is eligible for up to UGX 25 million in funding. Those with smaller land holdings, such as 2.5 hectares, will receive proportional support.
However, not all funds are disbursed directly to farmers. A significant portion is managed through Equity Bank to ensure proper use. The Ministry of Agriculture pays certified suppliers directly for inputs such as fertilizers, pesticides, and pruning services. The remaining funds are deposited into farmers’ accounts and monitored for accountability.
Minister Kyakulaga highlighted the long-term economic impact of the project: “Uganda already has a strong domestic demand for palm oil products like soap and cosmetics. Once harvesting begins, each farmer could earn an estimated UGX 2.5 million per month, with a production lifespan of 25–30 years. This project directly addresses the issues of poverty and unemployment in the Busoga region.”
