From All Africa

After teaming up with the Dutch bank Rabobank, dfcu bank is expected to venture into Uganda’s largely-ignored agricultural sector, a move that could give the sector a much-needed push.

The Dutch bank last week acquired a 27.5 per cent stake in dfcu bank, and announced plans to give preferential attention to agriculture. Rabobanks’s plan to channel more funds towards farmers is bold, for it is intended to go where many banks fear to tread. But it is also a smart business strategy because the market for Uganda’s agricultural products has widened far deeper across the country’s borders.

With the government expected to cut funding to agriculture in the coming fiscal year, Rabobank’s intentions could be even more significant, although they may not do much to blunt overall impact of the underfunding.

“Rabobank sees great potential in further developing the budding agricultural sector in Uganda, while significantly enhancing access to banking services for the rural population at the same time,” said Frank Nagel, who represented Rabobank at the signing ceremony at Sheraton hotel.

He added: “This letter of intent is an important step forward in achieving our mission in the area of agricultural transformation, food security and improving access to financial services in rural Uganda, and reflects the essence of the Rabo Development initiative.”

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