Uganda: US$99.6 million livestock loan to benefit 55 districts

Government can now borrow up to US$99.6 million to finance the proposed Resilient Livestock Value Chain Project (ReLiV) in 55 districts.

The loan, approved by Parliament, will be borrowed from the International Fund for Agricultural Development (IFAD).

The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, presented the loan request during plenary sitting on Tuesday, 09 September 2025 chaired by Speaker Anita Among.

“The goal of the project is to contribute to improved livelihoods of smallholder livestock farmers in Uganda. The project development objective is to enhance income, nutrition and resilience of smallholder dairy and beef producers,” said Musasizi.

He added that the ReLiV project will benefit the 55 selected districts in the cattle corridor selected based on high incidence and density of poverty, food insecurity and malnutrition, among others.

“The project will directly benefit 400,000 households and 20,000,000 beneficiaries indirectly through the different components with a minimum target of 40 percent women and 25 percent youths,” Musasizi said.

Presenting the report of the Committee on National Economy, Committee Chairperson, Hon. John Bosco Ikojo recommended approval of the loan, but quickly called for its re-negotiation.

“The loan should be re-negotiated to move resources from consumptive items to acquisition of goods, services and inputs, as well as equipment and materials,” he said.

Ikojo stated that the committee’s observation indicated that Shs600 million was earmarked for purchase of vehicles, wherein he argued that such expenditure is not necessary.

The committee further noted that whereas the loan was highly concessional, they were not given adequate time to scrutinise the loan.

“The committee notes that the proposed financing terms of IFAD are highly concessional with long-term maturing and grace periods. Of recent, government has not been having access to such concessional loans,” Ikojo said.

Hon. Ibrahim Ssemujju (FDC, Kira Municipality), however, urged the lawmakers not to approve the loan, saying that Parliament should consider the committee’s recommendation on re-negotiation.

“With the proposals that the committee has made, they have left us with no options but to say no to this loan request. I think they are only polite not to make government look bad,” said Ssemujju.

Musasizi, however, justified the urgency of the loan, saying that the timelines dictate that it should be signed by 12 September 2025.

“To allay Hon. Ssemujju’s fears, I would like to clarify that this loan has the best terms. The interest rate is zero and the repayment period is 50 years,” Musasizi said.

Hon. Muhammad Muwanga Kivumbi (NUP, Butambala County) questioned the project finance components, saying that most of it supports government entities, citing that US$59 million out of US$99 has been earmarked for projects under the National Agricultural Research Organisation and Kawanda Agricultural Research Institute, among others.

“You do not see a farmer, you only see government ranches being financed. So, who is benefiting from this loan?” he asked.

According to the committee’s report, US$8 million will be spent on management and Muwanga Kivumbi criticised the proposed expenditure, saying it is misplaced.

“This looks like a classical failed project that is intended to benefit only the elite, and I am not convinced that this committee has had time to look at the benefits of this project,” he added.