Equity Bank Uganda and Guru Nanak Oil Mills (U) Limited have joined forces to transform the way money moves through Uganda’s agricultural sector, launching a digital payments drive aimed at reducing the dependence on physical cash in the buying and aggregation of agricultural produce.
The partnership builds on a business relationship that has existed since 2013, when Equity Bank began working with Guru Nanak and members of its supply network. The new phase of collaboration is focused on making payments to agricultural suppliers safer, faster and easier to track, particularly in rural areas where cash remains the dominant means of doing business.
For years, agricultural traders and aggregators have handled large amounts of physical money after delivering produce to processing facilities. In some cases, suppliers receive cash at factory stores and then travel with the money to distant rural trading centres, exposing them to risks such as theft, loss and difficulties in keeping proper financial records.
Guru Nanak Managing Director Surjit Singh said the move to digital payments would give suppliers greater security and control over their earnings. He noted that instant transfers, financial literacy training and convenient mobile cash-out services would enable farmers and traders to manage their income more responsibly while creating opportunities to reinvest in their agricultural businesses.
To support the transition, Equity Bank is placing financial officers at mill sites and strategic trading locations where they will directly engage suppliers. The officers will assist traders and farmers in accessing digital banking services while providing practical financial education to help them understand and effectively use the new payment systems.
Equity Bank Uganda Managing Director Gift Shoko said the bank’s strategy is to digitise the agricultural chain progressively, starting with aggregators who deliver produce to Guru Nanak before reaching individual farmers. He said the ultimate goal is to create a more secure and efficient system in which transactions can be digitally tracked from the point of produce collection to payment.
The Bank’s Director for Public Sector and Social Investments, Catherine Psomgen, said teams would provide direct assistance at processing centres and weighbridges to ensure suppliers face minimal difficulties during the transition. The first phase will enable Guru Nanak to make electronic payments directly to aggregators while generating digital records that improve transparency and accountability.
The initiative will eventually extend to smallholder farmers and commercial growers in key production areas, including Nwoya District. By reducing cash handling, the partnership is expected to strengthen financial security, improve record-keeping and give agricultural businesses better control over their finances, while helping Uganda’s farming sector move towards a more digital, transparent and commercially sustainable future.
