The African Development Bank (AfDB) has approved a $140 million loan to support a major irrigation and agricultural development programme in Uganda, aimed at strengthening food security, increasing climate resilience and creating thousands of jobs.

The financing, provided through the African Development Fund, will support the Uganda Multipurpose Water for Climate Resilient Irrigation Development and Agro-Industrialisation Programme in the country’s Bunyoro subregion. The initiative forms part of a broader $207 million investment package that includes funding from the Organisation of the Petroleum Exporting Countries (OPEC) Fund for International Development, the End School Age Hunger Fund, the Government of Uganda and project beneficiaries.

The programme seeks to address challenges facing rural farming communities that remain heavily dependent on rainfall. By expanding irrigation infrastructure and improving access to water resources, the project is expected to boost agricultural productivity while helping farmers adapt to the growing impacts of climate change.

A key component of the initiative involves the construction of a large-scale water conveyance system linked to irrigation networks covering more than 4,000 hectares during the initial phase. The irrigation area could expand to approximately 13,000 hectares in a second phase as development progresses.

Beyond irrigation infrastructure, the programme will introduce climate-smart agricultural technologies designed to improve crop and livestock production. Farmers will gain access to certified seeds, soil restoration programmes, livestock watering facilities and mobile veterinary services aimed at enhancing productivity and sustainability.

The project also includes investments in post-harvest management systems, storage facilities, aggregation centres and cold-chain infrastructure. These improvements are expected to reduce food losses, improve product quality and strengthen access to domestic and regional markets.

According to project estimates, more than 121,000 households will directly benefit from the programme. The initiative is also expected to create over 13,000 jobs across agricultural value chains, including farming, processing, transportation and logistics.

Social development remains a central focus of the programme. School feeding initiatives linked to local agricultural production are expected to reach approximately 21,000 children, while women and young people are set to play a significant role in project implementation. Officials estimate that women will account for around 50% of beneficiaries, while youth participation is expected to reach 30%.

AfDB East Africa Director General Alex Mubiru said the programme represents a comprehensive approach to unlocking agricultural potential and addressing key barriers to rural development.

The investment reflects growing efforts across Africa to strengthen agricultural resilience, improve food systems and support economic growth through climate-smart infrastructure and sustainable farming practices.

As Uganda continues to prioritise agricultural transformation, the programme is expected to play an important role in enhancing productivity, increasing rural incomes and supporting long-term food security.