Economic Policy Research Centre (EPRC)
http://hdl.handle.net/10570/1999
EPRC2024-03-28T18:28:12ZAccess and use of credit in Uganda: Unlocking the dilemma of financing small holder farmers.
http://hdl.handle.net/10570/4010
Access and use of credit in Uganda: Unlocking the dilemma of financing small holder farmers.
Munyambonera, Ezra; Mayanja, Musa Lwanga; Nampeewo, Dorothy; Adong, Annet
The study investigates the extent of access and use of credit by small holder farmers in Uganda.
Despite several interventions in agricultural financing by government, access to credit by
smallholder farmers has remained very low and stagnating over the years. In understanding
the extent of the problem, the study uses information from the various agricultural financing
initiatives government has implemented over the years including prosperity for all (PSA) of
2008, the national agricultural advisory services (2001), entandikwa scheme (1996), the recent
agricultural credit facility (ACF) and microfinance support centre (MSCL), among others; it uses
the Uganda Census of Agriculture dataset collected in 2008/09 to provide some insights on
access to credit by agricultural households and examines two successful models of Centenary
Rural Financing Scheme and Uganda Cooperative Alliance-Area Cooperative Enterprise (ACE)
in promoting access to financial services to the rural poor. On the previous interventions by
government in agricultural financing, the study observes that weak institutional framework for
co-ordination, financing and implementation could have affected their impact. Insights from UCA
(2008/09) data show that access to credit by agricultural households remain very low at 11.3
percent. This could be blamed on the policy failures of the various agricultural financing initiatives
that government has implemented over the years, poor response of formal commercial banks to
agricultural lending and weak regulation of the microfinance institutions at (Tier-4) to effectively
deliver credit to small holder farmers. A critical review of two successful models in prompting
access to financial services by small holder farmers suggests that if government is to succeed
in promoting access to financial services by small holder farmers, there would need to have
strong institutional framework for agricultural financing. Exploring the establishment of a rural
or agricultural development bank could be a better option for Uganda.
2014-01-12T00:00:00ZThe Agricultural Finance Year Book 2019
http://hdl.handle.net/10570/7969
The Agricultural Finance Year Book 2019
Economic Policy Research Centre, EPRC
The 2019 Agricultural Finance Yearbook, which is the ninth edition in the series and coincides with the 10th anniversary
of Agricultural Credit Facility (ACF), offers an in-depth analysis of the trends in the sector performance, with particular
emphasis on interventions to promote agro-industrialisation.
Chapter One of the book examines the trends in agriculture lending by both government and private financial institutions,
the performance and implementation of the Bank of Uganda managed Agriculture Credit Facility over the last ten years;
progress and lessons from the Agriculture Insurance Scheme; the rationale for an agriculture finance policy and the
implication of the Tier-4 regulatory framework for agriculture finance.
A key lesson drawn is that implementation challenges notwithstanding, the uptake of agriculture credit facilities offered
by government and partners has steadily increased. This is reflected in portfolio of loans disbursed under ACF amounting
to UGX 331 Billion, extended to 525 projects across the country, as at March 2019, as well as provision of complementary
financial products by private institutions.
Chapter Two of the book critically analyses the innovations that have impacted on the sector with a view to accelerating
financial inclusion, such as the introduction and operationalisation of digital payments across the agriculture value
chain, easing access to agriculture loans through agent banking, developments in collateral financing through the
Warehouse Receipts System. In addition, the book chronicles unique innovations like Centenary Bank’s CenteSupa
Woman club as well as interventions to encourage Agricultural Small Medium Enterprise (SME) lending.
In the third chapter, evidence is provided using case studies, to examine the financing of agricultural value chains. This
includes the role of Public-Private Producer Partnerships in the case of oil palm; financing the country’s integration in the
global value chain referring to the case of cotton and textile industry, modalities employed by the development partners
and private actors in financing the coffee value chain as well as looking at the development partners perspectives in the
case of maize value chain financing in Uganda.
Chapter Four assesses the opportunities for equity investments in the agriculture sector, use of credit guarantees
to finance agriculture, capacities and institutional governance of Savings and Credit Cooperatives Associations
Organisation—all aimed at boosting investments in agriculture sector.
I appreciate EPRC’s role of fostering sustainable growth and development of the Ugandan economy by advancing the role
of research in policy processes. The Ministry of Finance, Planning and Economic Development shall continue to ensure
that financing of agriculture is a priority.
I highly recommend this insightful book to all stakeholders working in, or with an interest in, the agricultural sector in
Uganda.
This ninth edition in the series, offers an in-depth analysis of the trends in the sector performance, with particular emphasis on interventions to promote agro-industrialization. It is divided into four chapters that cover: policy and strategy, innovations and research, financing of agricultural value chains, and financing for agricultural investments.
2019-06-30T00:00:00ZAttracting investments using tax incentives in Uganda: The effective tax
http://hdl.handle.net/10570/9285
Attracting investments using tax incentives in Uganda: The effective tax
Lakuma, Corti Paul
Uganda operates a wide array of tax incentives schemes to attract investments like other countries in East Africa.
However, due to significant amount of revenue foregone due to such schemes, Uganda has embarked on the
process of rationalizing its overall incentive regime. This study examines the tax burden of various tax incentives
schemes operational in Uganda by estimating the effective marginal tax rates (EMTR) and effective average
tax rates (EATR). We find sectoral variations in effective average tax rates due to a selective tax holiday and
preferential income tax. Overall, tax holidays and preferential income tax rates lower the effective tax burden to a
single digit percent and encourage individual tax avoidance strategies. We find that the surge inflation registered
during 2010/11 had an adverse effect on effective tax rates. Furthermore, our results confirm in previous findings
that tax holidays effectively reduce EATR and favour high-profit short-lived (less than 5 years) investment projects
raising doubts about their overall rationale.
2019-03-30T00:00:00ZComparing the performance of Uganda’s intra-East African Community trade and other trading blocs: A gravity model analysis.
http://hdl.handle.net/10570/4008
Comparing the performance of Uganda’s intra-East African Community trade and other trading blocs: A gravity model analysis.
Shinyekwa, Isaac; Othieno, Lawrence
This paper examines factors that determine Uganda’s trade flows and specifically compares the impact and performance of the different trade blocs on Uganda’s trade patterns and flows. The empirical question is whether Uganda’s trade is getting more integrated in the East African Community (EAC) region or is still dominated by other trading blocs, namely European Union (EU), Asia and Common Market for Eastern and Southern Africa (COMESA)? Two analytical approaches are used, namely: trade indicators and estimation of the gravity models using data extracted from COMTRADE for the period 2001 – 2009 (panel). We estimate determinants of export and import trade flows separately using static random, dynamic random and IV GMM models. The results suggest a strong relationship between belonging to a trading bloc and trade flows. Likewise, Uganda’s import and export trade flows have conspicuously adjusted to the gravitational forces of the EAC during the progress of the integration. Whereas exports are being integrated more in the EAC and COMESA regions, imports are more integrated in the Asian and EU trading blocs. Therefore, strong links with trading blocs outside the EAC (i.e. EU and Asia) with regards to imports still exist. The trade indicators demonstrate that Uganda exports largely primary products and imports manufactured products. It is imperative for Uganda to target implementation of regional trade agreements to expand the country’s export markets. The EAC region should attract investment in production of high technology products to increase intra-EAC imports and reduce imports from Asia and the EU.
2013-01-01T00:00:00Z