Emata and Netherlands Embassy Expand Partnership to Boost Financing for Ugandan Coffee, Potato Farmers

KAMPALA, UGANDA

Building upon a successful partnership that started in 2022, The Netherlands Embassy in Kampala ("EKN") has announced a substantial increase in its support of Emata to increase the availability of affordable financing for smallholder farmers in Uganda.

The collaboration began with a facility of USD$590,000 (roughly UGX2.2 billion) to fund loans to thousands of smallholder dairy farmers nationwide. EKN now increases its support and expands the facility to include coffee, potatoes and other crops.

Since its founding in 2021, Emata has partnered with 43 agricultural organisations and reached an impressive 38,000 dairy, coffee, maize, and oilseed farmers. The organisation has provided loans amounting to UGX 3 billion ($810,000) to 2,500 small-scale farmers, with UGX 2.5 billion directed towards the dairy sector, and UGX 500 million to coffee, maize, and oilseed farmers.

Emata loans have resulted in an average 25% increase in farmers' productivity for dairy farmers.

Emata's data analysis shows that smallholder lending has a significant impact, as Emata loans have resulted in an average 25% increase in farmers' productivity. Additionally, dairy cooperatives have seen an average increase in milk volumes of 80%, which can be attributed to higher productivity among borrowing farmers, reduced side-selling, and increased cooperative membership due to the appeal of Emata's loans and SMS services.

The collaboration between EKN and Emata is a significant step towards facilitating affordable digital loans to farmers across Uganda.

This is a powerful example of public-sector-led development that is catalytic in mobilising much-needed capital to the agricultural sector without raising interest rates amidst a climate of macroeconomic uncertainty.

This collaboration will provide essential financial support to boost investments in agricultural productivity and promote rural prosperity, thereby accelerating the progress of millions of farmers towards a better life.

Learn more about Emata: www.emata.ug