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Finance, Agriculture Ministries partner with financial institutions to boost large-scale farming

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Finance, Agriculture Ministries partner with financial institutions to boost large-scale farming
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In a landmark move to support the government's ambitious "Tenfold Strategy," the Ministry of Finance, in collaboration with the Ministry of Agriculture, has signed a Memorandum of Understanding (MOU) with key financial institutions to drive large-scale agricultural investments.

The Secretary to the Treasury, Ramathan Ggoobi, says the partnership aims to mobilize significant funding for large-scale farmers, with a target of contributing $20 billion to the nation's economy by 2040.

“Of the four sectors we are focusing on to boost our GDP tenfold, we are driving agro-industrialization as one of the key sectors to contribute $20 billion USD in the next 15 years,” Ggoobi said.

The Tenfold Strategy is an ambitious initiative designed to revolutionize the agricultural sector, creating jobs, increasing productivity, and enhancing food security.

The overarching goal is to build a self-sufficient, sustainable, and thriving agricultural sector that can meet the demands of a growing population while also positioning the country as a global leader in agribusiness.

At the heart of this strategy is the expansion of large-scale farming operations, which are seen as critical to achieving the growth and development targets set for the agricultural sector.

Large-scale farming can drive economies of scale, improve productivity, and introduce modern technologies that increase efficiency, ultimately contributing to food security, export revenue, and overall economic growth.

To realize this vision, the Ministry of Finance and the Ministry of Agriculture have secured partnerships with a range of financial institutions, which will provide the necessary capital to scale up large-scale farming initiatives with zero principal repayment.

The partnership marks a significant shift in the approach to financing agriculture. By providing large-scale farmers with the necessary funding and resources, the MOU aims to unlock the full potential of the agricultural sector.

Additionally, the influx of capital is expected to create new opportunities for job creation, particularly in rural areas where agriculture is the primary source of livelihood.

The growth of large-scale farms will not only increase agricultural output but also stimulate the creation of downstream industries such as food processing, packaging, and distribution, further driving economic growth.

As the MOU kicks off, stakeholders across the agricultural value chain are looking forward to seeing how this collaboration will unfold, with high expectations for its transformative impact on the industry.

With this strategic partnership, the goal of contributing $20 billion to the economy by 2040 is within reach, ensuring a stronger and more vibrant agricultural sector for generations to come.

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