PostBank and Agence Française de Développement (AFD) have announced a 13-year strategic partnership to support sustainable agricultural financing.
The partnership, which was formalized today at the bank’s Nansana branch in Wakiso, aims to expand financial access in agricultural and rural sectors by developing innovative financing solutions, promoting gender equality with products tailored for women and youth, and strengthening the capacity of local actors to drive sustainable, climate-resilient agriculture.
AFD has extended UGX60 billion as a concessional line of credit and an additional UGX4 billion technical assistance grant to PostBank, designed to enable agricultural MSMEs, smallholder farmers, and SACCOs, with a specific focus on women- and youth-owned businesses, to participate in the agricultural value chain.
The funding by AFD will also enable PostBank (gradually rebranding to PearlBank) to expand its climate-smart agriculture finance products and deepen financial inclusion in rural communities. The technical grant will enhance the bank’s capacity to offer affordable and sustainable financing to underserved communities.
“PostBank’s purpose is to Foster Prosperity for Ugandans, and this has been showcased through the financing portfolio that we extend to the different sectors that continue to inspire economic growth. Among these is the agriculture sector, which employs about 70% of Uganda’s population,” Mr. Julius Kakeeto, PostBank Uganda MD, said while highlighting how the bank continues to play a key role as a financing partner in Uganda’s agricultural transformation, especially in supporting rural communities, women-led farming groups, and informal farmer cooperatives.
Kakeeto told the press that the bank’s partnership with AFD reaffirms its commitment towards creating an enabling environment for Ugandans to participate in the rich agriculture value chain, which comprises sector actors like agro-input suppliers, mechanization dealers, irrigation solution providers, and regulatory institutions like the Bank of Uganda.
Marc Trouyet, the Country Director for AFD in Uganda, applauded the partnership. He noted that the Agence Française de Développement (AFD) is proud to launch a long-term partnership with PostBank. “This collaboration aims to unlock new energy and investment across Uganda’s agribusiness sector from smallholder farmers and SACCOs to women and young people while driving the adaptation of agriculture to the realities of climate change,” he said.
H.E. Virginie Leroy, Ambassador of France to Uganda, witnessed the partnership and emphasized that through this initiative, France reaffirms its commitment to supporting Uganda’s farmers, cooperatives, and rural entrepreneurs, who remain at the heart of the nation’s agricultural sector.
PostBank’s impact on Agriculture has not gone unnoticed. In June this year, the bank was recognized at the Bank of Uganda’s Agriculture Credit Facility and Small Business Recovery Fund Awards, where it gained 5 awards, a demonstration of its continued support for the sector with innovative approaches and inclusive agricultural lending that are a catalyst to the country’s broader development agenda. And last week, the Bank was awarded a prestigious sustainability certificate by the European Organization of Sustainable Development.
These recognitions are a testament to the Bank’s effort towards championing sustainable initiatives in its operations, and its partnership with AFD solidifies this.
