The Uganda Development Bank (UDB) has embarked on a loaning scheme to cotton farmers in the Eastern and Northern parts of Uganda.
The bank has taken the initiative in order to revive the production of cotton in the country, which has dipped over the recent years.
UDB has recently repositioned itself as a partner of the Government of Uganda for delivering the National Development Plan.
The bank has offered nearly US$ 170,000 to 4400 cotton farmers in the eastern part of Uganda, reports East African Business Week.
A part of the loan that has been lent would go to building capacity in processing and marketing so that farmers can take advantage of the growing local market.
According to UDB, 638 cotton farmers from the Balitwegomba Cooperative Farmers society were the first beneficiaries of the loan which is extended on a seven month rotational basis.
The money has been let at the competitive interest rate of 12 percent per annum.
The farmers would be able to access additional funding in the subsequent seasons after they effectively meet with their loan repayment obligations.
Source:
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