24 February 2024

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Relief as Stanbic bank promises to give unsecured loans to Busoga sugarcane farmers

As part of activities for the day, the Bank officials, farmers and workers of KSL joined in a tree planting exercise and later donated an assortment of medical items like Mama Kit to Kakira Hospital.
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Some of the cane farmers during the Wednesday meeting. Photo by Nelly Otto/TND News.

Last Updated on: 24th May 2023, 08:20 pm

Jinja, May 24, 2023: Stanbic Bank, the biggest banking institution in Uganda in collaboration with Kakira Sugar Ltd has launched a new partnership that is intended to facilitate sugar cane farmers to be more prosperous.

Farmers will, in this new arrangement, be able to borrow up to UGX100m without depositing any collaterals like land titles and car log books as has always been the case with nearly all banking and financial institutions.

The launch ceremony was held at the Cinema Hall inside the head office of Kakira Sugar Ltd on May 23, 2023, and was witnessed by representatives from KSL, Busoga Kingdom, Kakira Town Council and the bank.

The Busoga Kingdom was represented by the Foreign Affairs Minister Joan Machora who applauded the efforts the Madhvani Group of Companies has continually put in place to improve the quality of life in Busoga and the country at large.

The head of Informal Eco System Mathias Jumbo took the attentive farmers through the numerous solutions with an emphasis on digitised banking to make banking easy and safe.

The solutions include an everyday banking account which allows a farmer to transact whenever he wants without the usual irritating monthly charges and flexible lending where a farmer gets unsecured loans from as low as UGX350,000 to UGX100M to be paid back within 24 months.

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“…Stanbic would like to help players within the industry to exploit the existing opportunities to expand their businesses by providing a variety of personalised services and products…,” Jumbo told the farmers who included their leadership under the Busoga Sugar Cane Out growers Association (BSGA) led by Hajji Abubaker Ojwang Omboko.

He was formerly called David Ojwang-Omboko before converting to Islam a few years ago.

Jumbo named more solutions offered to the cane farmers, some of whom may not be interested in picking loans as investment opportunities like government securities, fixed deposit accounts and insurance, crop insurance plus financial literacy, among others.

“…fire outbreak is a big risk, so with our fire and special perils cover for sugarcane crop 3%insurance premium rate of loan amount advanced to the farmer and collected upon loan disbursement…” he assured.

The Joint Managing Director of Madhvani Group of Companies Kamalesh Madavani welcomed the innovation saying it will greatly give a boost to the farmers who are the main suppliers of cane to the factory.

“…make sure you explain all the details to the farmers to help them make informed choices on which products they can opt for, otherwise this is something positive…” Kamalesh said in a brief speech.

As part of activities for the day, the Bank officials, farmers and workers of KSL joined in a tree planting exercise and later donated an assortment of medical items like Mama Kit to Kakira Hospital.

Stanbic Bank officials like James Damulira the Regional Manager that covers the traditional Karamoja up to Busoga and Buikwe and Kayunga, the bummy Manager Corporate Social Investment Diana Ondoga and the ever shy-looking Jinja Area Manager Bruno Agaba, among others, graced the occasion.

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