In the steep, erosion-prone hills of Kabale District in Uganda’s Kigezi region, smallholder farmers are overcoming severe agricultural challenges through innovation and resilience. With support, these smallholder farmers are adopting sustainable land management practices like bench terracing, agroforestry, and planting erosion-control grasses to restore soil fertility and protect their land.
Access to tailored agricultural finance through Saccos, Village Savings and Loan Associations (VSLAs), and cooperatives is enabling smallholder farmers, especially women and youth-to invest in seeds, fertilizers, and market-ready products. Digital FinTech platforms and tripartite agreements now link producers, buyers, and lenders, strengthening value chains and ensuring reliable market access.
This integrated approach is transforming farming into a sustainable and profitable venture, turning Kabale’s challenging landscape into a beacon of agricultural resilience. The district is known for vegetables and Irish potatoes.
For the smallholder farmers in Kabale district, they are boosting yields and incomes through modern day practices.
Ms Anita Kyarikunda, a mother of two children and a smallholder farmer in Nshanjare Town Council, Rubanda District, is transforming her livelihood through improved farming methods. She grows Irish potatoes and beans on her two-acre plot.
‘I used to make losses because I didn’t know how to plant in rows and columns, especially given the hilly terrain in the Kigezi region. I also didn’t know how to create water retention holes to control runoff, which caused severe soil erosion,’ Ms Kyarikunda recalls.
Her situation changed after receiving training in agronomic practices, sustainable land use, and access to agricultural loans-areas where many smallholder farmers in the region have long faced challenges.
‘Now, I use techniques like Fanya juu and Fanya chini when planting. With just 1 kg of seed beans, I now harvest 50 kg,’ she says proudly. ‘Previously, the same 1 kg would only give me 10 kg.’
Thanks to the adoption of better farming methods, including the use of bench terraces, her harvests and income have improved significantly. ‘It’s now easier to pay school fees and take care of my household,’ she adds.
Mr Denis Mwesigire, another farmer from Nyabyumba Village, Katenga Parish, practices mixed farming and has also seen notable improvements. By digging trenches, he conserves water and nutrients that would otherwise be lost through runoff and erosion.
‘We used to rely on traditional methods of planting a lot of seed with little output and no fertilizers. I would use 20 kg of bean seed to get just 100 kg. Today, I use only 5 kg and still harvest between 100 and 130 kg,’ he explains.
Mwesigire notes that planting in lines has reduced seed wastage and improved yields. ‘On average, we now earn around Shs300,000 per month from selling 100 kg of beans,’ he says.
Adding that the support by the BRIGHT project, implemented by International Fertilizer Development Center (IFDC) has enabled him to acquire better farming practices that have enabled him to have annual work plans and proper book keeping for their farms.
These testimonies highlight how the adoption of climate-smart agriculture and access to knowledge and finance are helping smallholder farmers in Uganda’s highlands overcome environmental challenges and boost their productivity.
Harnessing technology in hilly terrain
Mr JohnFrancis Nuwasasira, sustainable land use and crop production field officer at the IFDC and the BRIGHT Project in Rubanda district-Kigezi region says that when they first arrived in this region; they had to sensitize the people in Kigezi region on how to control soil erosion, use technology such as digging terraces and to ensure that there is land restoration.
This, he says, currently enables farmers to walk along the edges of freshly dug terraces carved into the hillsides, thereby creating a difference between eroded land and stabilized plots.
‘These bench terraces are a game-changer. Without them, the rainwater simply flows downhill, taking with it the fertile topsoil. But once the terraces are in place, they slow down the water, reduce erosion, and protect the soil. That means crops can grow without being washed away-and that leads to better harvests,’ Nuwasasira explains.
Indeed, these terraces do more than just hold soil in place. By flattening sections of the hill, they create more manageable farmland where crops can thrive. With improved soil retention comes increased productivity, ensuring not only food security for households but also surplus harvests that can be sold for income.
‘With increased crop yields; households begin to see economic transformation. They can feed their families and sell the excess for income. This leads to better living standards,’ he adds.
But building terraces on hillsides is no small task. Mobilizing the community is key and for that, local leadership and grassroots structures are essential.
‘We work closely with the local government systems, village councils, sub-county leaders, and community groups,’ he says, adding that one of the most effective groups are what are called ‘English groups’social support groups that come together during life events, like funerals or celebrations. These groups already have strong unity and rules, so we tap into that cohesion to organize community labor for digging terraces.’
Constructing a single bench terrace can take one to two weeks, depending on its length and the available labor. In more extensive areas, like the hillside Nuwasasira gestures toward, the process can stretch to several months. That particular stretch took nearly five months to complete.
But digging the terraces is just the beginning.
Adding that once the earthworks are done, the next step is contour stabilization. To reinforce the terraces and prevent them from collapsing under heavy rainfall or mudslides, farmers plant what are known as life stabilizers. These include Napier grass (also called Pak Chong or elephant grass), which is not only effective at holding the soil together but also serves as fodder for livestock. Alongside this, agroforestry trees such as Calliandra and Gliricidia are planted along the contours.
‘These plants act as natural barriers; they stop the mud from breaking through the terraces. Over time, the vegetation creates a stable ecosystem that keeps the land productive,’ Nuwasasira elaborates.
The results are visible. Stabilized land holds its structure, crops remain rooted, and communities that once struggled with poor yields are now on a path toward resilience and prosperity.
In these highland communities, technology doesn’t always mean machines and wires. Sometimes, it means knowledge applied skillfully and collaboratively to shape the land and secure a future for those who depend on it.
Empowering smallholder farmers
In Uganda’s rural farming communities, access to affordable finance remains one of the greatest barriers to productivity. Smallholder farmers often lack collateral, face high interest rates, and struggle with limited access to markets.
Ms Hellen Ninsiima, the Market and Value Chain Lead at IFDC, explains how the project is transforming agricultural finance through three strategic pathways-each designed to connect farmers to affordable credit, markets, and technology.
The different finance pathways or approaches include; Leveraging Community-Based Finance: The first approach involves working closely with local farmer organizations, including Saccos (Savings and Credit Cooperative Organizations) and cooperatives.
‘A grassroots financing approach is being implemented by strengthening local farmer organizations such as Saccos and cooperatives, and linking them to formal financial systems through partners like Pearl Capital Partners and government programs,’ Ninsiima says.
Saccos receive funds at low interest rates and lend them to individual farmers or groups, ensuring access to affordable credit. In regions like Kigezi, loans-often tailored for women, youth, and small-scale farmers-are available for inputs like seeds and fertilizers at rates as low as 1.5% to 1.8% per month.
Streamlining loans approvals
She continues: ‘Many loans are provided in-kind to ensure proper use and improve agricultural productivity.’
Secondly; FinTech integration for smarter lending. This leverages financial technology (FinTech) to simplify and digitize loan access for rural farmers. In partnership with firms like Oxyn and financial institutions such as YuvaFold, FinTech tools collect and analyze transaction data from Village Savings and Loan (VSL) groups.
Each group uses a tablet to record savings, loans, and repayments, creating a digital financial profile shared with partner banks to demonstrate creditworthiness. This streamlines loan approvals and improves transparency. Loans are disbursed via mobile money, with local agents facilitating withdrawals to enhance accessibility.
Interest rates range from 2.8% to 3%, based on group risk profiles, encouraging responsible borrowing. Overall, the system boosts financial literacy, accountability, and access to finance in rural communities.
Thirdly, tripartite agreements to secure market access; involves tripartite agreements between cooperatives, Pearl Capital, and off-takers-agro-industrial companies that buy produce from farmers. Under this model, Pearl Capital lends to the cooperative, which supplies farmers with inputs. Once the harvest is delivered to the off-taker, part of the payment goes directly to repay the loan, and the remaining balance is paid to the farmers.
This structure ensures that loans are repaid on time and the money is used for the intended agricultural activities. It also links farmers directly to reliable markets, giving them confidence that their produce will be bought at fair prices, and that they will have the means to repay their loans without stress.
Ms Rodias Kyasimire, a consultant field officer with Agri Terra, Ms Rodias Kyasimire, a consultant with Agri Terra, is helping farmers in Kigezi’s erosion-prone hills tackle key challenges like soil and land degradation, counterfeit agro-inputs, and poor market access. Through training in sustainable land management, safe use of agrochemicals, and access to certified seeds and fertilizers from trusted suppliers, farmers are adopting safer and more productive practices.
‘Agri Terra also connects farmers with seed producers, agrochemical companies, and cooperatives that offer input loans and facilitate collective marketing-ensuring timely access to quality inputs, reducing middlemen exploitation, and increasing incomes,’ she says.
Adding that to strengthen collective action, they have supported the formation of cooperatives in areas like Nshanjare Emikago Association, Nyabyumba Farmers’ Sacco which are helping farmers bulk produce, access clean potato seeds from research institutions, and negotiate better prices. Furthermore, crop rotation with sorghum is promoted to maintain soil fertility year-round.