By D E Wasake, FCCA, Principal at

Basic information


·         Farmers and

·         Agro - processors only

Sector focus:

·         Agriculture

Amounts provided:

·         Amounts of up to  UGX 2.1 billion

·         Funding up to 90% of the project cost

·         Long Term loans 6 months - 8 years

·         Grace Period up to 3 years

·         Subsidized lending rate of 12%

Funding type

Subsidized loan financing

Key criteria

The borrower must be an already existing farmer/entity or an agro processor with the following needs:


  • Acquisition of agro-processing machinery and equipment
  • Purchase of fixed assets for agro-processing, agriculture mechanisation and modernisation
  • Development of post harvest handling equipment and storage

Further information

Visit any Crane Bank branch; or

Tel: 256(0)414 345345, +256(0)704 700700



Who is behind the Facility?

As of December 2013, Crane Bank was the 4th largest commercial bank in Uganda, with an asset valuation of approximately US$575.3 million (UGX:1.45 trillion), and shareholders' equity in excess of US$114.2 million (UGX:288.2 billion).

It is a member of the Ruparelia Group. A private conglomerate founded by its chairman Sudhir Ruparelia, estimated by Forbes in November 2012 to be Uganda’s wealthiest individual.

What is the process like?

As the loan interest of 12% is subsidized by the Uganda government since typical commercial Bank interest rates in Uganda are 21- 22% at July/August 14 (per BOU statistics), then it is expected that the loan application process will be very rigorous.

As such, we expect that prior to application; the borrower should have a fairly robust plan to show their past successes (very innovative and excellent returns) as well as most likely a social element to it (to justify access to subsidized rates).

Furthermore as the loan seems to be primarily for purchasing value addition/processing machinery, it will be critical to have already obtained detailed information from the equipment manufacturers including a detailed case for how the purchase will make a difference.

Otherwise as with all products, the process is expected to be as follows:

  • Application
  • Due diligence process including a site/farm visit assessment to validate business activity;
  • Securing of the collateral (and deposit) – most likely via the assets being purchased in the Bank’s name; and
  • Disbursement of funds in line with terms and conditions.

Our view/tips for success?

As mentioned, as the loan is subsidized, the competition for it will be high and so you need a robust business plan including the following:

1. Research to support the move to processing. The loan is subsidized because the Government of Uganda is keen to encourage Agro processing as one of its policy aims. You however need to have sufficient research for your particular sector to justify the impact Agro processing will have on the economy as this will justify the basis of the subsidy.

2. Proper Books of accounts and cash flow analysis: As this is predominantly aimed at active participants in the agriculture value chain, you must maintain proper books of accounts/records for easy assessment of the business – particularly as you will need to justify how the loan will be repaid and that the business with Agro processing will be highly profitable. You probably need to consider having audited accounts as this will support being established and a mature business.

A key element of the loan is that as agriculture is seasonal and you get a grace period of up to 3 years, the forecasts will need to clearly justify how the accumulated loan principle and interest will be easily repaid once the grace period is over.

3.Market partnerships. A key element of agro processing is to show the market that will purchase your products once processed. It is therefore key that as part of the business plan, and in advance of applying, you can enter into some form of partnership with say large supermarkets who can give you a “letter of intent” which provides proof that your product has a market.

Otherwise best of luck!  If you need further assistance or guidance, contact our team


Inachee is not an agent or connected to this entity. It is an independent thought leadership and advisory firm.

The information provided is based on our research, experience and if we are able to contact them, by speaking to this entity’s personnel. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.