By Mulengera Reporters
Nine in every 10 agribusinesses supported through the Agricultural Credit Facility (ACF) are operating on a commercial basis, pointing to a strong shift from subsistence farming towards market-oriented agriculture among beneficiaries of the Bank of Uganda-managed facility.
The National Planning Authority (NPA) independent evaluation found that 90% of sampled ACF-funded agribusinesses were commercially oriented, with 40% operating fully at large scale and 50% combining subsistence and commercial production.
Only 10% of the sampled enterprises remained primarily subsistence-based, according to the evaluation commissioned by the Ministry of Finance, Planning and Economic Development and released in May 2026.
The findings suggest that ACF financing is largely reaching agricultural enterprises with the capacity and intention to produce for the market, expand operations and generate income beyond household consumption.
The high level of commercialisation is significant because it indicates that the facility is supporting Uganda’s broader transition from subsistence agriculture towards agriculture as an enterprise.
The evaluation says the 40% share of fully commercial, large-scale operators demonstrates the ability of ACF financing to support businesses already operating at a significant scale.
Another 50% of beneficiaries were classified as medium-scale enterprises, combining subsistence and commercial farming.
The remaining 10% operating primarily at subsistence level, however, point to a different financing challenge.
The NPA says some of these enterprises may not yet be sufficiently prepared to generate meaningful development outcomes from credit alone, particularly where they lack the technical, managerial or commercial capacity required to expand.
The evaluation therefore recommends that the ACF avoid applying a uniform financing approach to agribusinesses operating at different levels of maturity.
For large commercial enterprises, financing should increasingly support competitiveness, innovation and export growth, allowing established businesses to move further up agricultural value chains and compete in larger markets.
For semi-commercial and subsistence-oriented enterprises, the NPA recommends combining finance with targeted technical assistance and enterprise development support.
Such support could help less-developed businesses improve their operations and transition towards commercially viable models before or alongside accessing larger amounts of credit.
The findings suggest that the ACF has already established a strong commercial orientation, but that its future impact could depend on how effectively it responds to the different needs of its beneficiaries.
Rather than measuring success only by the amount of money disbursed, the evaluation points to the importance of ensuring that financing is matched to the operational capacity and growth ambitions of each enterprise.
The NPA report says a tiered approach would allow the facility to strengthen high-performing commercial businesses while helping smaller and less-developed enterprises build the capacity needed to participate effectively in the market.
This, it argues, would reduce the risk of underperformance among less-prepared borrowers while ensuring that ACF-funded businesses contribute more meaningfully to Uganda’s agricultural transformation.
For the Bank of Uganda and participating financial institutions, the findings provide a positive indication that ACF financing is reaching a predominantly commercial agricultural base, while also highlighting the need for differentiated support as the facility seeks to deepen its development impact under Vision 2040. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
