The African Development Fund Supports Rural Agriculture and Environment Protection in Uganda

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The Board of Directors of the ADF on Wednesday approved a loan of 31.57 million Units of Account (UA*), equivalent to 46.12 million US dollars and a grant of 9.85 million UA, equivalent to 14.38 million US dollars to finance the Farm Income Enhancement and Forest Conservation Project in the country.

The project aims to reduce poverty by improving incomes, rural livelihoods and food security, through sustainable natural resources management and agricultural enterprise.

The project comprises three components:

  • Forestry Support, with two sub-components (Community Watershed Management; and Tree Planting);
  • Agricultural Enterprise Development, with four sub-components (Soil Fertility Management; Small Scale Irrigation and Crop Development; Apiculture Promotion; and Agricultural Marketing);
  • Project Coordination and Management.

In all, over 42,000 farm families will benefit from the project. About 33,000 households will benefit from the forestry support component, 2,750 households from participating in the small-scale irrigation, while a total of 80 households would benefit from the rainwater harvesting. An additional 6,000, majority of them women, will benefit directly from the soil fertility management practices.

The total cost of the project is estimated at UA 51.15 million, equivalent to 74.72 million US dollars. The ADF loan and grant will finance 81% of the project while the Nordic Development Fund and the Government of Uganda will provide the remaining 19% percent of the funds.

The Bank Group operations in Uganda started in 1968. To date, the Group has committed a total amount of UA 834.42 million, equivalent to US $ 1.22 billion.

Project Information Sheet

- Location: Nation-wide, covering 37 out of the 56 districts

- Executing Agency: Ministry of Water, Lands and Environment, P.O. Box 7096, Kampala; Uganda, Tel: 256-41-342931; Fax: 256-41-230891,

- Estimated starting date and duration: January 2005, for 5 years

- Procurment of Goods and Works: Goods and works will be procured according to Bank Rules of Procedures. National Competitive bidding for procurement of Small Scale Irrigation civil works, and National Shopping for procurement of vehicles, motorcycles, agricultural inputs office and other equipment.


Felix Njoku Phone: +216 71 10 26 12