The key interventions required are to alleviate the market failures which impede the delivery of financial services to farmers. For example, it is necessary to strengthen the institutional environment for loan security to reduce the credit risks of lending to farmers. Strengthening land rights to allow farmers to use land as loan collateral would help to make farmers more creditworthy.
The proposed establishment of a Collateral Securities Registry and the enactment of the Chattel Securities Bill, which is currently before Parliament, will help to widen the range of assets which are acceptable to lenders as collateral. Promoting the warehouse receipt system set up by the Uganda Commodity Exchange would also be a useful measure to support lending to agriculture.