The Board of Directors of the African Development Bank Group has approved a $140 million loan to support a major programme aimed at expanding climate-resilient irrigation infrastructure, strengthening agricultural value chains and promoting rural economic development in Uganda's Bunyoro subregion.
The financing, provided through the African Development Fund, represents a significant share of the programme's estimated total cost of $207 million. Additional funding will be contributed by the OPEC Fund for International Development, the End School Age Hunger Fund, the Government of Uganda and programme beneficiaries.
The Uganda Multipurpose Water for Climate Resilient Irrigation Development and Agro-Industrialization Programme is designed to address challenges associated with food insecurity and limited agricultural productivity in rural areas that rely heavily on rainfall. As part of its first phase, the initiative will support the construction of a large-scale water conveyance system and associated irrigation infrastructure serving more than 4,000 hectares of farmland. A second phase could expand coverage to as much as 13,000 hectares.
The programme also includes measures to promote climate-smart agricultural practices, including support for crop and livestock production, certified seeds, soil restoration activities, livestock watering facilities and mobile veterinary services. Investments in storage, aggregation and cold-chain infrastructure are expected to help reduce post-harvest losses and improve access to markets.
Access to finance and business development services will be provided to cooperatives, agribusinesses and small enterprises to encourage growth across agricultural value chains and support job creation.
According to the African Development Bank, the programme is expected to directly benefit more than 121,000 households and generate over 13,000 jobs. It will also support school feeding programmes linked to local food production, reaching approximately 21,000 children. Women are expected to account for around 50% of beneficiaries, while young people will represent 30%.
