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Opposition makes strong case for agro-industrialisation in alternative budget

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Last week, the leader of the opposition, Joel Ssenyonyi, tabled the alternative budget outlining the key issues that the opposition thinks need prioritisation.

Among other issues, Ssenyonyi proposed a significant increase in funding to Uganda’s agro-industrialisation programme in the 2026/27 financial year, arguing that current allocations fall short of national development targets.

He said the proposed reforms are aimed at aligning agricultural spending with the goals set out in National Development Plan IV.

Ssenyonyi said the opposition is pushing for a phased increase in funding to at least 5% of the national budget, equivalent to about Shs 3.6 trillion.

This is more than double the projected Shs 1.745 trillion allocation, which represents only 2.2% of the national budget for the next financial year, down from 2.4% in the current year.

He said the additional funding would prioritise key targets such as increasing agro-processing levels and improving fertiliser distribution.

The opposition has also proposed the creation of an independent agro-budget oversight committee to monitor how funds are used.

The committee would produce quarterly reports on expenditure and impact, while enforcing programme-based budgeting as recommended by the National Planning Authority (NPA).

A major focus of the alternative budget is strengthening agricultural extension services, which the opposition says are currently underfunded and ineffective.

The plan includes recruiting 5,000 additional extension officers through a decentralised system to improve the farmer-to-officer ratio to 1:50 across rural districts.

To complement this, the opposition plans to introduce digital extension platforms, including mobile applications and artificial intelligence tools, to provide real-time agronomic advice to at least two million farmers.

It also proposes training 100,000 farmers in sustainable practices through community-based workshops, with the aim of increasing average crop yields by 20%.

Access to affordable credit is another key pillar of the proposals. The opposition wants to introduce a subsidised agricultural credit scheme worth Shs 2 trillion, offering loans at interest rates below 5% through cooperatives and targeting one million smallholder farmers.

In addition, the plan includes partnerships with microfinance institutions to waive collateral requirements for women and youth farmers, as well as the disbursement of Shs 500 billion in grants for start-up agribusinesses.

An agricultural credit guarantee fund would also be established to cover up to 80% of loan defaults, reducing lender risk and expanding access to credit.

The opposition has further proposed expanding irrigation infrastructure, noting that only about 2% of Uganda’s arable land is currently irrigated, far below national targets.

The plan includes constructing 50 small-scale irrigation schemes covering 100,000 hectares, particularly in drought-prone regions such as Karamoja and Teso.

This would be supported by an investment of Shs 400 billion in rainwater harvesting systems and solar-powered pumps to benefit 300,000 households.

A national irrigation master plan would also be developed with community participation, with the goal of increasing irrigated land to 10%.

The alternative budget also addresses persistent market challenges affecting farmers. The opposition proposes measures to stabilise prices, improve storage infrastructure, and reduce exploitation by middlemen.

It further calls for better policy coordination across sectors to address overlapping mandates, and for strengthening agricultural supply chains to reduce costs and improve competitiveness.

The proposals come at a time when agriculture remains the backbone of Uganda’s economy.

Under NDP IV, the government aims to transition farmers from subsistence agriculture to commercial production, with a focus on value chains such as coffee, dairy, beef, maize and fisheries.

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Staff writer at Lira City Post.

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