WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-09-21 Time: 19:00:03 Posted By: News Poster
By Paul Mwijagye
Kampala, Uganda – The agricultural loan scheme which was introduced in the 2009/10 national budget to help farmers in value addition has been boosted with a further UShs30billion (about US$15m) to make it UShs90billion.
Initially the scheme started with UShs60b (about$30m). The government was supposed to contribute UShs30b whereas other commercial banks would contribute another UShs30b to make it UShs60b.
The money would then be lent to farmers at an interest rate of 10%. “The government has signed an agreement with the Uganda Bankers’ Association to raise the agricultural farmers’ facility from UShs60b (about$30m) to UShs90b (about$45m).
This will also help farmers in value addition,” noted Lamin Manjang the Managing director Standard Chartered Bank who also doubles as the chairman of Uganda Bankers’ Association.
He, however, said unlike before where the interest rate was 10%, the interest rate is going to be slightly higher.
Manjang made the remarks while speaking at a customer event for commodity traders in Kampala last week organised by Standard Chartered Bank.
Very few farmers have shown interest in seeking bank financing because of the conservative bank requirements which are unrealistic as far as farming is concerned.
They are characterized by high interest rates, delayed processing by which time the weather pattern may not be favourable yet the banks would insist on accruing interest on the principal. It unlikely that even with this development, farmers will respond positively.
Manjang said Standard Chartered Bank will start financing farmers for the whole value chain.
“With most farmers struggling to access credit to invest in agriculture, Standard Chartered Bank has come up with two products to enable farmers access financing.
“The government came up with the agricultural loan scheme that was meant for value addition only.
As Standard Chartered Bank, we have decided to finance the whole value chain,” Manjang said. “If farmers come up with the right product they will be able to get financing from the bank,” Manjang noted. He also the bank will be financing the buyers and off-takers to purchase the farmers’ produce.
The two products developed are Input Financing and Warehouse Receipt Financing. Under Input Financing, the bank will be financing farmers to buy inputs like pest sides.
“Under this arrangement we will not rely on the traditional method of looking at the balance sheet. We shall be looking at the value of the
commodity,” said Godfrey Mundua the head of commodity traders and agriculture. He said they will give a maximum of up to 65% to the farmer based on what the farmers expect to from the crop at harvest.
Under Warehouse Receipt Financing the bank will provide the financing after harvest with commodities in a warehouse. Mundua said the bank will mainly be targeting farmers in organised groups with off takers and individuals who produce on a large scale; especially commodities such as coffee, cotton and tea.
He said the bank is negotiating with insurance companies in Uganda to provide the multi peril insurance cover to farmers.
Original date published: 21 September 2010
Source: http://allafrica.com/stories/201009210985.html?viewall=1