Mercy Iselu, Sector Head, Food & Agriculture, dfcu BankAgriculture has been part of dfcu‘s story since the institution was established in 1964 to finance Uganda’s development. Over the decades, the bank has worked with farmers, cooperatives, processors and agribusinesses across the value chain, giving it a unique perspective on both the opportunities and financing challenges shaping one of Uganda’s most important sectors.In this interview, Mercy Iselu, Sector Head, Food & Agriculture at dfcu Bank, discusses how agricultural finance is evolving, what lenders look for beyond traditional collateral, and where the next growth opportunities lie across Uganda’s food and agribusiness value chains.Q: How is dfcu positioning its agricultural financing portfolio to help close the financing gap facing farmers and agribusinesses across the value chain?Mercy Iselu: Our approach is built around the understanding that agriculture extends far beyond production at farm level. We support participants across the value chain, from input suppliers and farmers to processors, traders and exporters.For smallholder farmers, access to finance remains a significant challenge, so we have introduced digital lending channels and partnerships with SACCOs and cooperatives to reach underserved communities. We also support farmers through the Agricultural Credit Facility and provide financing for mechanisation, agro-processing and value addition. The goal is to ensure enterprises of different sizes can access the financing they need in a way that aligns with agricultural realities and cash-flow cycles.Q: What financing options are available for businesses at different stages of growth, from emerging commercial farmers to established agribusinesses seeking expansion capital?Mercy Iselu: Agricultural enterprises are not all at the same stage of development, which is why financing solutions must be tailored accordingly.For smaller enterprises, affordability and access are often the key challenges. For larger agribusinesses, financing requirements tend to focus on expansion, working capital and investment in productive assets. Beyond financing, we also work to strengthen business fundamentals through financial literacy, record-keeping and enterprise development programmes. These interventions help enterprises build stronger financial profiles and improve their readiness to access capital as they grow.For over 10 years, dfcu Bank has sponsored the annual Best Farmers Competition, which seeks to recognise, reward and platform agricultural practitioners across the countryQ: Agriculture presents unique risks and income cycles. How does dfcu assess agricultural businesses and structure repayment arrangements?Mercy Iselu: Agricultural lending requires a different approach from traditional commercial lending. We assess factors such as production history, acreage, yields, market access and expansion plans.Equally important, repayment arrangements are structured around actual cash flows. Agriculture is seasonal by nature, so repayment schedules need to reflect production cycles and harvest periods. Depending on the enterprise, repayments may be monthly, quarterly or structured around anticipated harvest revenues. Agricultural insurance also plays an important role in helping businesses manage weather-related and other production risks.Q: Beyond working capital, what role does financing play in modernising Uganda’s agricultural sector?Mercy Iselu: Modernisation is essential if Uganda is to improve agricultural productivity and competitiveness. Mechanisation, improved technologies, post-harvest handling and processing all require investment.One area we continue to support is asset financing, enabling businesses to acquire machinery, tractors and equipment that improve efficiency and reduce operational constraints. Through partnerships with suppliers and service providers, we are also helping businesses access technologies that can support long-term growth and value addition.The 2024 Best Farmers being flagged off for a benchmarking trip to the NetherlandsQ: Many agricultural enterprises struggle to meet traditional collateral requirements. How is dfcu addressing this challenge?Mercy Iselu: The reality is that many viable agricultural businesses do not always fit conventional lending models.Through ecosystem-based financing, digital transaction records, cooperative structures and contract financing arrangements, we can assess businesses using a broader set of indicators than traditional collateral alone. Working with cooperatives, off-takers and value-chain partners often provides additional visibility into production, sales and cash flows. This helps expand access to finance for businesses that may otherwise remain underserved.Q: Access to finance is only one part of building successful agribusinesses. How is dfcu combining financing with enterprise development support?Mercy Iselu: Sustainable growth requires more than capital. Farmers and agribusiness owners also need skills, knowledge and market access.Through the dfcu Foundation and other partnerships, we support financial literacy, business management training, record keeping and market-linkage initiatives. These programmes help strengthen business operations, improve decision-making and enhance the overall bankability of enterprises. Over time, stronger businesses are better positioned to access finance, expand and contribute to sector growth.Q: Looking ahead, where do you see the biggest opportunities within Uganda’s food and agriculture sector over the next three to five years?Mercy Iselu: Uganda’s long-term agricultural potential remains significant, particularly in value chains such as coffee, cocoa, dairy, grains and oilseeds.Going forward, growth will increasingly depend on stronger value chains, greater value addition, digital innovation and deeper collaboration between financial institutions, development partners, agribusinesses and technology providers. Expanding access to appropriately structured finance while continuing to address gaps in capacity, market access and risk-sharing will be critical to helping more enterprises move from subsistence and early-stage operations into commercially scalable businesses.The post Q&A: How dfcu is Financing Growth Across Uganda’s Food and Agribusiness Value Chains appeared first on Business Focus.