Home‎ > ‎News‎ > ‎

UDB Signs MoU with FOL Logistics to Boost Rice Production in Uganda.

posted 24 Nov 2016, 04:24 by David Tamale   [ updated 24 Nov 2016, 05:54 ]
FOL Group's Elizabeth Rumanyika makes her remarks at the UDB-FOL Group MoU signing event on May 24th, 2016

Uganda Development Bank Limited (UDBL) and FOL Logistics Uganda Limited signed a partnership agreement to boost rice production in Uganda by providing a guaranteed market to rice farmers in the country.

The signing ceremony took place at the FOL Logistics, producers of Kingdom Rice at Namanve Industrial Park on May 24th, 2016. UDB CEO Mrs. Patricia Ojangole signed on behalf of UDB whilst Ms. Elizabeth Rumanyika signed on behalf of FOL Group. The event was attended by high ranking government officials, UDB senior management and media.

UDB Support To Rice Farmers

Uganda Development Bank is so far financing over 8,000 small holder farmers with over 30% of its loan book under agriculture and agro processing. The bank is increasing access to low cost credit to small holder farmers through organized and legally existing farmer groups organized and registered as Unions, cooperative societies and associations.

The partnership with FOL logistics is a great approach towards increasing rice production and productivity in Uganda. The approach shall enable farmers access good market of output, access good quality inputs through credit, have capacity to perform all the good agricultural practices on time, technical support among others. These shall guarantee high quantity and quality yield.

About FOL Logistics

FOL Logistics ltd is a subsidiary of FOL group that was established by a group of businessmen associated with international logistics/trade and heavy industry manufacturing businesses. In 2013 the FOL group established a rice plant at Namanve Kampala, producing rice trading under the brand called KINGDOM RICE. Partnership is expected to help the factory meet its capacity to produce 500 metric tons per day; these shall substitute its brown rice imports that constitute 90% of its current input from Tanzania and Pakistan. The factory shall reduce its foreign spending on rice purchases that annually cost the factory about $90 million. More employment opportunities shall be created to add to the current 250 full time staff.

Objective Of The Partnership

UDB/FOL logistics partnership aims at Reaching out and supporting over 25,000 small holder rice farmers all over Uganda with small agriculture loans to enable them produce and supply brown rice to FOL logistics ltd, ensure that over 50,000 acres of rice are planted per annum to produce sufficient rice to feed the factory, Increase yield per acre at farm level to minimum of 1.5 tons of milled rice by providing credit to cater for agro inputs and technical support, achieve minimum annual production of 100,000 Mt supplied to FOL logistics ltd.

Benefits to Farmers

The small holder farming population shall benefit from FOL Logistics ltd technical rice expertise which is expected to be transferred from Pakistan, affordable small holder rice mechanization technology transfer with equipment expected to be introduced from Asia, reliable bulk market to the farmers produce at competitive price. In addition, the rice farming population shall receive new long grain rice varieties from Asia. FOL logistics shall also establish a modern rice scheme in Uganda; these shall also be used as a practical farmer training center.

As a nation the partnership is step towards increasing production and productivity of rice nationally for local consumption which currently stands at 237,000 Mt per annum (MAAIF) and consumption demand of 444,468 metric tons per annum according to figures from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). This will increase house hold incomes of rice farmers.

http://www.udbl.co.ug/news-events