UN-Bayer Facility Awards First Loans to Ugandan and Kenyan Agri-Firms to Boost Farmers

Two innovative African companies are receiving pioneering loans from a UN-Bayer partnership to transform food systems and support thousands of smallholder farmers.

Omia Agribusiness Development Group, led by Ugandan entrepreneur Iganachi Razaki Omia, operates in conflict-affected northern Uganda. The firm provides seeds, fertilizers, training, and market links to 90,000 smallholders, many facing post-harvest losses from lack of storage. The new $500,000 local-currency loan will expand services to 75,000 more farmers, including 30,000 women and 20,000 refugees, with terms improving based on impact targets.

“This investment enables us to significantly expand our reach while strengthening farmer incomes, resilience, and food security,” Omia stated.

In rural Kenya, SokoFresh addresses produce waste through solar-powered cold storage hubs and direct market connections. Up to 40% of fresh produce rots due to heat and delays. The four-year $500,000 loan will serve over 5,000 smallholders annually, projecting a 10% income rise from reduced losses and better pricing, according to CEO Denis Karema.

The Food Systems Innovation Finance Facility, managed by UNCDF with Bayer Foundation funding, shifts from grants to impact-linked concessional loans in local currency. This de-risks investments in frontier markets as official aid dropped 23.1% in 2025.

“We are paving the way for increased capital to flow to companies like these,” said UNCDF Executive Secretary Pradeep Kurukulasuriya. Bayer Foundation’s Chitkala Kalidas highlighted its catalytic role in unlocking further investment.

The initiative targets Africa, Asia-Pacific, and Latin America, aiming to prove profitable food security solutions.

Source: Daily Monitor (Uganda)