AfDB Backs Uganda Irrigation Drive with $140m Loan

The Board of Directors of the African Development Bank Group has approved a $140 million loan to help Uganda expand climate resilient irrigation and reduce the heavy dependence of rural communities on rain fed agriculture in the Bunyoro subregion.

The funding, announced under the Uganda Multipurpose Water for Climate Resilient Irrigation Development and Agro Industrialization Programme, is expected to strengthen food production, create jobs and support agro industrial growth.

The African Development Fund is set to provide the loan as part of the programme's estimated total cost of $207 million. Additional funding will come from the OPEC Fund for International Development, the End School Age Hunger Fund, the Government of Uganda and programme beneficiaries.

The project is designed to tackle some of the major challenges facing Uganda's agricultural sector, particularly the vulnerability of farmers who depend largely on rainfall. Unpredictable weather patterns linked to climate change have increasingly threatened crop yields and food security in many rural communities.

To address this challenge, the programme will develop a large scale water conveyance system connected to irrigation networks covering more than 4,000 hectares of farmland during the first phase. The project also has the potential to expand irrigation coverage to 13,000 hectares in a second phase.

The initiative will support farmers with climate smart technologies for crop and livestock production beyond irrigation infrastructure. Beneficiaries will receive access to certified seeds, soil restoration measures, watering points and mobile veterinary services.

The programme will also improve post harvest management through investments in storage, aggregation and cold chain facilities aimed at reducing food losses and improving access to markets.

Access to finance and business development support will be provided to cooperatives, small enterprises and agribusinesses, enabling them to expand operations and generate employment across agricultural value chains.

More than 121,000 households will benefit directly from the programme, according to project estimates. The initiative is expected to create over 13,000 direct jobs while stimulating investment in processing, logistics and rural enterprises.

It will also support school feeding programmes linked to local food production, reaching about 21,000 children. Women are expected to account for about half of all beneficiaries, while young people will make up 30 per cent.

The Bank's East Africa Director General, Alex Mubiru said the initiative goes beyond irrigation alone, while speaking on the programme's wider impact,

He maintained, “This is therefore not simply an irrigation project. It is a program that addresses a binding constraint, unlocks a clear opportunity, and does so through an approach that is integrated, scalable, and focused on delivery.”

The programme aligns with Uganda's Country Strategy Paper 2022 to 2026 and supports the African Development Bank's efforts to promote climate resilient agriculture, rural development and inclusive economic grow

th across the continent.