Here is how we can make Uganda’s irrigation initiatives work for smallholder farmers

What the report says

The Observer published a viewpoint arguing that Uganda’s expanded irrigation spending will only help smallholder farmers if the programme is made more affordable and better targeted. The article says the 2026/27 national budget allocated Shs 2.26 trillion to the Agro-Industrialization Programme, with a significant portion intended for irrigation and water-for-production infrastructure as rainfall patterns become less predictable.

Citing the Economic Policy Research Centre, the writer notes that average food crop yields fell from 532 kilogrammes per acre in 2014 to 262 kilogrammes per acre in 2020, increasing pressure on farmers who depend on rain-fed agriculture. The article says government introduced a micro-scale irrigation programme in 2020, under which farmers contribute 25% of the cost of a solar-powered irrigation system while government covers the balance. More than 6,220 farmers have reportedly benefited, according to the Agriculture ministry.

However, the article points to a 2024 Auditor General report that found 42% of beneficiaries were not smallholder farmers. It also says the average solar irrigation system costs about Shs 30 million, requiring a farmer contribution of roughly Shs 7.5 million, which is beyond the reach of many rural households. The writer adds that taxes on imported irrigation equipment and rigid monthly loan repayment schedules further limit uptake.

The commentary recommends applying VAT exemptions more clearly, combining the current co-financing model with pay-as-you-go payment systems, aligning repayments with farming seasons, and considering cheaper manual pumps that may cost about Shs 870,000. The central issue, the writer argues, is whether Uganda’s irrigation budget can translate into practical access for ordinary farmers as the country works toward its long-term irrigation targets.