Govt Seeks to Borrow USD 99m for the Livestock Sector
In a bid to revolutionize Uganda’s livestock industry, the Ministry of Finance and Ministry of Agriculture presented a groundbreaking proposal to the Parliament’s Committee of National Economy. Led by State Minister of Finance Henry Musaasizi, the officials sought to borrow $99.56 million from the International Fund for Agricultural Development (IFAD) to finance the Resilient Livestock Value Chain Project (Reliv).
The project aims to transform the lives of 400,000 households and 2 million direct beneficiaries, with 40% women and 25% youths, in 55 selected districts. These districts were chosen for their high potential for dairy and beef production, as well as their vulnerability to climate change and poverty.
The Reliv project promises to address critical infrastructure deficits, enhance quality feed and water, and increase productivity. Some of the key interventions include establishing national laboratories for feed and soil testing, constructing animal feed processing plants, and providing farmers with modern equipment and technology.
However, not all committee members were convinced. Some expressed concerns over the country’s growing debt, which stood at $25.55 billion as of June 2024. Others questioned the effectiveness of borrowing for agricultural machinery that often lies idle in ministry stores.
Despite these concerns, Minister Musaasizi assured the committee that Uganda’s public debt is sustainable and that the loan will be properly scrutinized. He emphasized that the project will not only increase productivity but also enhance access to markets and strengthen policy regulation.