Nov 23, 2017 Last Updated 2:37 PM, Apr 10, 2017

Agricultural Credit Should Be Available For Small Scale Farmers

  • Dec 19, 2014
Published in Editorial

THE CONCEPT of microcredit evolved during the 18th century but has received impetus since 1976 when Prof. Muhammad Yunus founded the Grameen Bank in Bangladesh. Mohammad Yunus started by lending small amounts of money (as little as $5), from his personal savings, this was to women who are involved in making bamboo stools in Jobra village. Yunus’ experiment made it evident that not only do the poor pay back their indebtedness’, but that micro loans can successfully tackle and reduce poverty.

 

The Grameen bank expanded this model and has disbursed several small loans over the years to poor entrepreneurs.
It has been observed that these microloans have helped poor entrepreneurs to advance their small scale business units, thus making microcredit to be regarded as one of the best ways to sustain the livelihood of the poor as well as alleviate poverty.

In Uganda, Small scale Farmers is responsible for 90% of the domestic food production. They are among the poorest constituency in Uganda’s demography. Located in the rural communities where necessary infrastructure is either not available or epileptic.

It is time for all of us to make an in-depth evaluation of the potential roles that microcredit can play in small scale agricultural development in Uganda, as well as the challenges of micro credit administration. In summary, making microcredit work for Ugandan small scale farmers is a critical motivating factor for development.

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