The African Development Bank (AfDB) Group has approved a $140 million loan to support a major irrigation and agro-industrialisation programme in Uganda aimed at strengthening food systems, expanding climate-resilient agriculture, and creating rural employment opportunities.
The programme, known as the Uganda Multipurpose Water for Climate Resilient Irrigation Development and Agro-Industrialisation Programme, targets the Bunyoro subregion and is designed to address long-standing constraints in agricultural productivity caused by dependence on rain-fed farming systems.
The initiative will support the development of large-scale water conveyance and irrigation infrastructure covering more than 4,000 hectares in its first phase, with potential expansion to 13,000 hectares in a later phase. It will also introduce climate-smart agricultural technologies, improved seed systems, soil restoration measures, livestock support services, and enhanced water access for farming communities.
In addition to production support, the programme will invest in storage, aggregation, and cold chain infrastructure to reduce post-harvest losses and improve market access for farmers. It will also strengthen agribusiness development through improved access to finance, business services, and cooperative support, helping small enterprises and rural producers integrate into broader agricultural value chains.
The project is expected to directly benefit more than 121,000 households and generate over 13,000 direct jobs. It will also expand opportunities in processing, logistics, and rural enterprise development, with a strong focus on inclusion, as approximately half of the beneficiaries are expected to be women and around 30 percent youth.
School feeding programmes linked to local agricultural production are also part of the initiative, with an estimated 21,000 children expected to benefit from improved nutrition and locally sourced food supply chains.
AfDB officials described the programme as a strategic investment that addresses critical infrastructure gaps while unlocking agricultural potential in Uganda’s rural economy. The initiative aligns with broader regional goals to promote climate resilience, agricultural transformation, and inclusive economic growth.
The programme forms part of Uganda’s national development strategy and reflects AfDB’s wider commitment to supporting sustainable agriculture and rural development across Africa.
