The Impact of Value Chain Finance on Agriculture Productivity in Uganda: Case Study of Kaliro Sugar Cane Outgrowers Association

Abstract

The objective of the study was to assess the impact of value chain finance on agricultural productivity in Uganda : a case study of KASOGA. The study was guided by three objectives including examining the contribution of value chain finance on agricultural productivity :establishing the factors that make value chain finance risky and un profitable and finding out the factors the factors affecting agricultural productivity in Uganda . The study adopted across sectional survey and used a sample of 43 respondents . primary data was collected through interviews and use of questionnaires while secondary data was established through documentary review. Data analysis involved the qualitative approach of identifying the major themes from the respondent’s answers ,classifying of the major responses under the main theme and integrating the response into the report in a more descriptive and analytical manner. From the study finding the researcher recommended that a wide range of innovative financial products and services was required to reach chain actors such as producers, traders, processor. And agric-companies. There was a need to build a vertical linkages in the financial sector to provide sufficiently comprehensive financial services to value chains ,value chain loans require monitoring ,including client visits among others, Include areas for future research . The study suggested further research to investigate the determinants of loan repayment the best practices , and challenges faced by financial institutions and which incentives would be required(and at what cost) to entice financial intuitions to participate in agricultural value chain financing in Uganda. Key concepts: value chain finance , chain actors , chain supporters agricultural productivity