How Stanbic Bank Is Transforming the Livelihoods of Palm Farmers in Kalangala

What the report says

Watchdog Uganda reports that Stanbic Bank has played a long-running role in supporting oil palm farmers in Kalangala District, where a once remote island economy has developed around the palm oil value chain. The article focuses on David Balironda Mukasa, a longtime local cooperative leader, who says farmers have moved from limited access to formal banking toward a system that lets them save, borrow and receive payments more securely.

According to the report, Stanbic was the first commercial bank to open in Kalangala and has handled farmers’ payments for more than two decades. The bank’s services are tied to the oil palm project launched in 2002 with government, IFAD and World Bank support, alongside private-sector partners. Farmers in the district, organized through trusts and cooperative societies, have used the arrangement to process annual sales and dividends, while also building savings and expanding their farms and other businesses.

The article says Stanbic’s agricultural model works largely through SACCOs, which can receive unsecured loans, and through selected financing for individual farmers in several value chains. It also highlights growth in the Ssese Oil Palm Growers SACCO, which has expanded its membership and lending capacity. Bank executives say the approach is part of a broader effort to advance financial inclusion and enterprise development.

The report adds that the oil palm project is entering a new phase after farmers repaid a government loan, with preparations underway for further expansion in Kalangala. That matters because the island district’s continued growth appears closely linked to access to finance, market structures and cooperative organization.