Press release

Pearl Capital Partners Launches UGX23.9 billion Dairy-Horticulture Credit Fund to Boost Smallholder Farmers in Uganda

October 27, 2023

Pearl Capital Partners (PCP) is delighted to announce and launch a UGX23.9 billion (€6 million) Fund with
support from The Embassy of the Kingdom of the Netherlands (EKN). The Agro-SACCO-focused credit
facility fund will support smallholder farmers in the dairy and horticulture value chains through various
access to finance initiatives. The Dairy-Horticulture Credit Limited (‘DHCL Fund’), managed by PCP
Uganda Ltd, is a UGX23.9 billion credit facility for wholesale lending to SACCOs, other Cooperatives and
SMEs working with and supporting smallholder farmers in the dairy and horticulture value chains. The
DHCL fund has two separate credit lines – the Uganda Dairy Credit Facility (UDCF) and Horticulture Credit
Line; each capitalized with UGX11.9 billion (€3million).

The credit fund will lend efficient medium-term loans to SACCOs and Cooperatives in Uganda’s central,
Eastern, Western and Southern regions for onward lending to the dairy and horticulture smallholder
farmers and farmer groups. The objective of the Fund is to provide affordable and accessible capital to
SACCOs and cooperatives that work with and support smallholder farmers in the dairy and horticulture
value chains, with a focus on promoting inclusive and sustainable development in the dairy and
horticulture sectors.

The product is designed to enable SACCOs to offer loans to their members that are tailored to the needs
of smallholder farmers, with a range of loan products that cater to different requirements such as
animal feeds, quality agro-inputs, quality breeding, water harvesting systems, pre and post harvesting
systems among others.

The DHCL fund impact and focus areas will include increased inclusion of women and youth in access to
credit, improved technical and governance capabilities of SACCOs to deliver affordable credit to farmers,
growth in SACCO membership and supporting SACCOs in the development of products that minimize the
impact of climate change. The DHCL fund will also seek co-investment opportunities and partnerships
with existing similar funds.

In implementing this Fund, PCP Uganda collaborates with the SNV Netherlands Development
Organization to provide technical support to the dairy sub-sector under the Integrated Smallholder Dairy
Development Program (ISDAP).ISDAP is an integral component of The Inclusive Dairy Enterprise (TIDE-II)
project implemented by SNV. On the side of horticulture, PCP Uganda has a collaborative working
relationship with TechnoServe Uganda, which provides technical support under the Horticulture Market
Acceleration Project (HortiMAP).

The major role of TIDE-II and HortiMAP in the implementation of this fund is the provision of technical
assistance to SACCOs, cooperatives, farmers, and local value chain actors to strengthen their
management and entrepreneurial capacities. The two partners also play the role of technical advisor
and monitoring the use of the facility by SACCOs and farmers.

Hans Raadschilders, First Secretary Food Security & Nutrition Netherlands Embassy said “Lack of
access to credit is one of the major hurdles for smallholder agricultural development. If credit is
available, then it often does not align with the needs of smallholder households. The embassy is happy to
be part of this project that links access to credit with the development of appropriate credit products that

align with the needs and priorities of smallholder and thereby stimulate the needed investment and

Edward Isingoma Matsiko, a Managing Partner at PCP, said: “Securing EKN’s support is a significant
milestone and an endorsement of PCP’s strategy regarding solving the access to finance issues for the
less privileged smallholder farmers in Uganda’s key Agri-sectors. Dairy and Horticulture credit fund
presents an opportunity for small-scale farmers to improve production and productivity for economic
growth in the two sub-sectors. Uganda has a favourable climate with evenly distributed rainfall and a
moderate climate that allows dairy, tropical fruits, and vegetables to flourish. While the natural
conditions are favourable, the potential of the two sub-sectors has not been maximized. Some of the key
limiting factors, such as low productivity, quality, food safety, and access to relevant lines of credit, will
be addressed by this Fund.”

Phomolo Maphosa, the Country Director of SNV in Uganda, said: “We are proud to partner with PCP
Uganda and EKN in this innovative Fund that will enhance financial inclusion for smallholder farmers in
the dairy sectors. This Fund aligns with SNV’s overall goal of creating sustainable and more equitable
lives for millions of people living in poverty. By providing access to affordable finance, we enable
smallholder farmers to invest in quality inputs, technologies, and practices to improve their productivity,
incomes, and resilience.”

Annette Kawooya Bogere-Project Director HortiMAP said: “Technoserve with support from EKN is
addressing critical needs innovatively through personalized services key to integrating more smallholder
farmers into larger supply chains, fostering confidence, and expanding access. The Horticulture Credit
Line is specifically designed to cater to the unique needs of smallholder farmers to foster their growth
and adoption of efficient and climate resilient technologies. It is the perfect response to the needs of
many smallholder farmers, who should have the opportunity to access it, leading to a more vibrant and
sustainable agricultural sector”.

Peter Tumuhimbise General Manager Butuuro Financial Services said: “It’s a great honor to be chosen
among many SACCOs in the country for our Dairy farmers, supporting small holder farmers is a means of
fostering growth and development plan to increase household income of our members, developing our
farmers is developing our SACCO and our nation. In Bushenyi – Western Uganda most people have small
pieces of land and relay on subsistence farming and as a SACCO, we continue to support zeal grazing to
perfect utilization of small land through capacity building and value addition of farming products for
commercialization purposes”.  

Kigenyi Richard General Manager Nazigo Sacco said: “Nazigo Sacco with support from Dairy
Horticulture Credit Limited through Pearl Capital Partners, is committed to serving its members with
affordable and accessible loans specifically to Horticulture farmers across the entire value chain through
its Ebibala Bugaaga loan product. Horticulture credit will greatly improve farmers’ production and
productivity, improve farmer household income, and increase food security. Smallholder farmers will be
economically empowered to improve their savings with the SACCO”.

About DHCL Partners

The Embassy of the Kingdom of the Netherlands in Kampala represents, promotes, and protects the
interests of the Government of the Netherlands.

SNV is a mission-driven global development partner focusing on revolutionizing agri-food, energy, and
water systems for sustainable livelihoods. With 34 years in Uganda and a decentralized presence across
100+ districts, SNV collaborates closely with communities, offering services like advisory and stakeholder
influencing. By providing technical assistance, SNV aims to drive growth, job creation, enhanced access
to essential services, and increased income making a meaningful impact and catalyzing system-wide

Techno Serve is an international nonprofit organization that promotes business solutions to poverty in
developing countries. It is headquartered in Washington, DC, and operates in 29 countries worldwide.
TechnoServe’s mission is to work with enterprising men and women in the developing world to build
competitive farms, businesses, and industries. It does this by linking people to information, capital, and

PCP Uganda Ltd, a Kampala-based agriculture investment firm, is licensed by the Capital Markets
Authority of Uganda. Its decade-long focus on small and medium-sized East African agribusinesses has
generated robust financial returns and significant social impact. Over 18 years, it has managed four
agriculture impact funds with combined assets of US$70 million and invested in over 50 agribusinesses.
Its active portfolio includes 16 companies under the Yield Fund, primarily in Uganda, and partnerships
with two large horticulture SMEs. Through strategic investments, PCP continues to drive transformative
change in the agricultural sector.

SOURCE: Pearl Capital Partners