| dc.description.abstract | This study examined access to the Agricultural Credit Facility (ACF) in Uganda, focusing specifically on a case study of Equity Bank; The study was premised on three objectives; to assess factors influencing the access of ACF on the various agriculture value chains, to examine the challenges and barriers faced by farmers and agribusinesses in accessing and utilizing the ACF and to examine the strategies that can be utilized to improve accessibility and utilization of credit through the ACF for agricultural activities. The study employed a cross sectional and descriptive research with a mixed study approach which involved collecting numerical data from 351 beneficiaries of ACF and interviewing 5 key informants (officials from Equity Bank). Quantitative Data was analyzed using the SPSS version 27. The study identified several factors influencing access to Agricultural Credit Facility (ACF) loans, with agricultural risks such as weather, pests, and diseases being significant barriers to loan repayment. Membership in farmer cooperatives was found to facilitate easier access to credit, while the ACF application process and collateral requirements were manageable. However, economic stability in Uganda and price volatility were less significant concerns. Challenges such as high collateral demands, high interest rates, a complex application process, and limited access to financial information hindered farmers' ability to access and utilize ACF loans. To improve accessibility, the study recommended reducing collateral requirements, providing more training and information, leveraging farmer cooperatives, offering risk mitigation tools like insurance, and introducing flexible repayment terms. The findings suggest that addressing agricultural risks, simplifying the loan application process, and reducing collateral requirements could enhance farmers' access to ACF loans. Therefore, the study recommends strong consensus on these strategies, emphasizing their importance in enhancing credit access for smallholder farmers and agribusinesses. Therefore, the study recommends reducing agricultural risks through comprehensive risk management tools like insurance and climate resilience training to help farmers manage risks and improve loan repayment. It also suggests strengthening farmer cooperatives to provide collective guarantees and support, making credit more accessible for smallholders. | en_US |
