AfDB Backs Uganda Irrigation and Agro-Industry Expansion

A key component of the programme is the development of a large-scale water conveyance and irrigation system that will initially serve more than 4,000 hectares of farmland.

The African Development Bank Group has approved a $140 million loan to support a major agricultural development programme in Uganda's Bunyoro subregion, aiming to improve food security, strengthen climate resilience and create new economic opportunities for rural communities.

The funding will support the Uganda Multipurpose Water for Climate Resilient Irrigation Development and Agro-Industrialization Programme, a large-scale initiative designed to address challenges faced by farmers who rely heavily on rainfall for crop production.

The African Development Fund will provide the majority of the programme's estimated $207 million cost, with additional financing coming from the OPEC Fund for International Development, the End School Age Hunger Fund, the Government of Uganda and local beneficiaries.

Irrigation and Modern Farming to Boost Production

A key component of the programme is the development of a large-scale water conveyance and irrigation system that will initially serve more than 4,000 hectares of farmland. A second phase could expand irrigation coverage to as much as 13,000 hectares.

Farmers participating in the programme will gain access to climate-smart agricultural technologies, certified seeds, soil restoration initiatives and improved livestock support services. The project will also establish watering points and mobile veterinary services to help strengthen animal health and productivity.

To reduce post-harvest losses, the programme will invest in storage facilities, aggregation centres and cold-chain infrastructure. These improvements are expected to help farmers preserve produce for longer periods and improve access to local and regional markets.

Support will also be provided to cooperatives, small businesses and agribusinesses through access to finance and business development services, helping them expand operations and create employment opportunities throughout agricultural value chains.

Thousands of Households Expected to Benefit

The programme is expected to directly benefit more than 121,000 households and create over 13,000 jobs through investments in farming, processing, transport and rural enterprises.

Officials estimate that women will make up around half of all beneficiaries, while young people are expected to account for approximately 30 per cent. The initiative also includes support for school feeding programmes linked to local food production, helping provide nutritious meals to around 21,000 children.

African Development Bank East Africa Director General Alex Mubiru said the programme goes beyond irrigation infrastructure by addressing broader barriers that limit agricultural growth and rural economic development.

The project forms part of the Bank's wider efforts to promote climate-resilient agriculture and inclusive economic growth across Africa. It also aligns with Uganda's national development priorities, which focus on improving infrastructure, supporting industrialisation and expanding private sector opportunities.

By combining water infrastructure, agricultural support and business development, the programme aims to strengthen food systems, improve rural incomes and build greater resilience against climate-related challenges in one of Uganda's key agricultural regions.