MSC Brings Affordable Loans to Drought-Stricken Rubanda Farmers

Rubanda District, a region heavily reliant on agriculture, is facing significant economic hardship due to prolonged drought. Staple crops like Irish potatoes, bananas, and beans have seen drastically reduced yields, leading to food scarcity and diminished incomes for many households. Local leaders have noted a severe depletion of food reserves, with some farmers unable to store even 100 kilograms of beans after harvest.

In response to this crisis, the Microfinance Support Centre (MSC) has launched regional loan clinics in Rubanda, offering government-backed financing with interest rates as low as 8% per annum. These clinics provide training in savings, responsible borrowing, and loan management, empowering farmers and local groups to access credit for productive ventures.

Hillary Bindeeba, the Assistant Rubanda Resident District Commissioner, highlighted the timeliness of MSC’s intervention. He emphasized the need for farmers to explore alternative income streams beyond rain-fed agriculture, suggesting enterprises like piggery and sheep rearing, which have proven viable markets in the region. He also stressed the importance of collective action, encouraging farmers to work in organised groups rather than individually to maximize their potential.

Rubanda District Vice Chairperson Prossy Kesafari echoed these sentiments, pointing out the severe food and income crisis. She welcomed the affordable financing from MSC as a crucial alternative to high-interest moneylenders. Kesafari also appealed to the government for irrigation infrastructure to mitigate the impact of drought and ensure year-round food security.

Williams Okweda, MSC Regional Manager for Western Uganda, stated that the initiative aims to help communities adapt to climate-related challenges and increase household incomes. MSC offers agricultural loans specifically designed to help organised groups acquire small-scale irrigation systems and other necessary equipment. He emphasized MSC’s commitment to capacity building, including enterprise development and financial literacy training, ensuring beneficiaries can invest funds productively.

This engagement in Rubanda is part of MSC’s broader effort to bring affordable financing closer to communities, promoting economic resilience in the face of climate change. The combination of accessible credit, diversification into alternative enterprises, and potential government support for irrigation is seen as a vital strategy for Rubanda’s farming households. https://nilepost.co.ug/news/372844/msc-takes-affordable-financing-to-drought-hit-farmers-in-rubanda