Written By | Peter Luzinda
Lawmakers approved the loan during a plenary session, with the government presenting the proposal through the Ministry of Finance, Planning and Economic Development.
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KAMPALA
Parliament has approved a government request to secure financing worth Shs734 billion for the expansion of solar-powered irrigation systems across Uganda, in a move aimed at strengthening agricultural resilience and boosting year-round food production.
The funding will support Phase II of the Solar-Powered Irrigation Systems Project, which targets the installation of 427 irrigation units in selected districts nationwide.
Lawmakers approved the loan during a plenary session, with the government presenting the proposal through the Ministry of Finance, Planning and Economic Development.
The financing package, equivalent to €168.9 million, will be mobilized through UK Export Finance (UKEF) and Citi Bank, according to government documentation presented to Parliament.
Officials say the project is designed to reduce Uganda's dependence on rain-fed agriculture, which has increasingly been affected by climate variability, prolonged dry spells, and declining predictability of seasonal rains.
State Minister for Finance Henry Musasizi told Parliament that the investment will directly support smallholder farmers and improve productivity in key agricultural zones, particularly areas vulnerable to drought.
He said the expansion builds on Phase I of the programme, which government reports indicate achieved widespread implementation of solar irrigation infrastructure and improved access to water for farming communities.
However, the approval process sparked scrutiny from legislators.
Leader of Opposition Joel Ssenyonyi raised concerns about transparency and performance evaluation of earlier installations, urging the government to provide clearer accountability reports before scaling up borrowing.
Other Members of Parliament pointed to reported cases of incomplete or underutilized irrigation facilities under Phase I, calling for stronger monitoring mechanisms.
Deputy Speaker Thomas Tayebwa presided over the sitting in which the loan was approved.
Despite the concerns, the government maintained that the project remains central to Uganda's agricultural transformation strategy, arguing that solar-powered irrigation offers a sustainable and cost-effective solution to improving food security and rural incomes.
The rollout of 427 new systems is expected to extend irrigation coverage to thousands of farming households once implementation begins.
