Funding Uganda's Harvest

Stanbic Bank supports this key sector of the economy which accounts for over 80% of GDP by providing financial support in form of loans, credit facilities and overdrafts to farmers, agro processors, corporative and key players in Agricultural value chains across the country. Over the past five years the bank has provided facilities worth an average of XXXX billion annually to the agricultural sector alone. By far the largest of any bank in Uganda. In addition the bank plays an important role providing foreign currency advisory services to farmers and other agricultural players who are dependent of imported inputs to reduce risk by hedging themselves against exchange rate fluctuations.


Uganda is Africa’s, third leading producer and exporter of tea after Kenya and Malawi. The crop is grown by large estates and small growers organised as either small estates affiliated with particular tea factory or small scale out growers. The out-growers produce approximately 28% of the total production of tea with the remaining 72% produced by the tea estates. The current trend in Uganda is for growth in the number of smallholders. The tea industry employs over 70,000 people directly, supporting more than 500,000 extended dependents.

Stanbic Bank is a key player within the tea sector funding both the small factories and large tea estates through revolving credit facilities which are of the utmost importance during the harvests, Agri loans and the provision of financial instruments such as Letters of Credit for importers of agricultural inputs.

Case Study: Rusekere Growers Tea Factory

Rusekere Tea growers is a large scale tea processor and buyer, located in Fort Portal. Stanbic provides about 90% of all the loans and credit needed by the company in its operations and investment activities.

The business relationship between the bank and Rusekere started in earnest 2012 when the owner of the company decided to scale up his operations and requested for and was given a loan of USD 2 million by Stanbic to finance a new production line. This allowed the company to significantly increase its processing capacity which at the time was about 1.5 million tonnes of tea leaves a year.

Today as a result of the owners resilience, foresight and hard work backed by Stanbic’s banks invaluable support, Rusekere Growers Tea Factory exports over 3.5 million tonnes of tea and is in the process of investing in a 3rd tea production line to further increase its export capacity.

Rusekere, Tea growers employs 250 workers directly and 1,200 indirectly through out-growers and other service providers in the process supporting an ecosystem of about 7,000 Ugandans.


Uganda is the largest producer of granular brown sugar in the East African region, accounting for about 500,000 metric tonnes annually as of May 2017. Consumption per capita in the country stands at 11kgs per capita and is expected to grow to about 20kgs in the next 10 to 15 years.

Historically and even more so today Sugar is perhaps Uganda’s most important Agro-processing industry generating revenues in excess of xxxxxxxx and employing xxxxxxx Ugandans. Sugar supports ecosystem of over XXXXXX Ugandans.

Stanbic plays a significant role in the sector as the main banking partner for Kakira Sugar works Ltd and the majority of its employees.


Case study; Kakira Sugar

Kakira is the largest producer of Sugar in Uganda churning out approximately 280,000 tonnes per year, representing 42% of all the sugar produced in the country.

In 1972, Kakira was producing 70,000 tonnes of crushed Sugar annually, today however despite the devastation caused by the Amin years, production has outstripped pre Amin figures many times over. This has been largely due to prudent financial management on the part of the owners and financial support from Stanbic bank with whom Kakira has had a strong business relationship for over 90 years.

Kakira runs a 14,000 hectare farm but also relies on production from 21,000 hectares of out-growers land. It employs 9,500 out growers directly and has 100,000 indirect employees for whom they have built 8 schools and a hospital within the community. Given these numbers in 2006 in order to serve its customers better many of whom are Kakira workers, out growers and suppliers Stanbic set up a new branch in Kakira township which lies within the Sugar estate.