Parliament demands renegotiation of $204.8million agriculture loan

Parliament of Uganda has directed the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to renegotiate the terms of a proposed US$204.8 million (approximately shs717.195 billion) loan intended to boost cattle production across the country.

The call came after legislators discovered that a significant portion of the loan was being allocated to administrative costs instead of the core activities meant to improve livestock productivity.

According to the National Economy Committee’s findings, more than shs15.648 billion is earmarked for consultancy services, shs14.402 billion for training and workshops, and another shs9.791 billion for the purchase of vehicles.

Members of Parliament expressed concern that while these areas are important, they should not consume such a large portion of borrowed money, especially when critical components of the Resilient Livestock Value Chain (RELIV) Project remain underfunded.

They argued that the priority must be on activities that directly benefit farmers and strengthen cattle production, such as pasture improvement, veterinary services, and disease control.

The recommendation to renegotiate the loan was presented by John Bosco Ikojo, Chairperson of the Parliament’s National Economy Committee, during the plenary session on September 9.

He emphasised that government borrowing must deliver tangible results to citizens rather than being drained by inflated administrative expenses.

The loan under consideration includes up to US$99.56 million from the International Fund for Agricultural Development (IFAD) to finance the RELIV Project.

Lawmakers, however, insisted that the Ministry revisit the agreement to ensure more funds are redirected towards the actual implementation of livestock projects that would uplift rural farmers and contribute to food security.

The debate highlighted Parliament’s increasing scrutiny of loans, with MPs warning that failure to align spending with priorities risks burdening the country with unsustainable debt without meaningful returns.