While the GoU has launched several schemes to support access to credit and insurance for farmers, more needs to be done to promote financing and risk transfer in the agriculture sector; government interventions should be geared toward addressing the unmet needs of smallholder farmers (85 percent of farmers) and SMEs while applying MFD principles to crowd in private investment throughout the value chains. The ambitious goal of agriculture transformation requires the financial sector to play a bigger role. Strengthening resilience for different farmer segments in Uganda through financial products such as savings,
insurance, and credit is important. Government investments are also needed to catalyze the private sector financing and investments. In this regard, six areas of investments for the GoU to consider have been identified: (i) expanding investments in high-quality agro-meteorological data; (ii) scaling up and adjusting the public schemes promoting agriculture finance; (iii) expanding investments in digital financial services; (iv) adopting a smart premium-subsidies regime for farmers and pastoralists; (v) expanding investments in financial education and awareness creation; and (vi) investing in private sector capacity development by establishing a technical support unit (TSU); see further details in section 5 on investment components.