Experts from the Ministry of Water and Environment and Heifer International have urged financial institutions to provide dairy cooperatives with affordable interest rates to enable them to invest in water infrastructure solutions.
This call comes as Uganda’s dairy sector contributes about 6.5 percent directly to the country’s agricultural GDP, making access to reliable water systems critical for productivity and growth.
The appeal was made during the Water for Dairy Business Workshop organized by Heifer International at Onomo Hotel. The discussions followed the successful pilot of the Water for Dairy Businesses (W4DB) project implemented by Heifer International Uganda with support from Aqua for All.
The initiative adopts a market-based approach under which community water systems are installed, operated, and sustainably managed by dairy cooperatives. Two pilot systems were established in Dwaniro and Muyenje in Kiboga District.
Representing the Ministry of Water and Environment’s Directorate of Water Resources Management, Eng. Wasswa Joseph, Principal Engineer and Manager for Production in the Central Region, emphasized that water is not only a basic human right but also a vital driver of agricultural productivity, food security, and economic transformation.
He challenged financial institutions to develop financing products that reflect the realities of dairy farmers. “Cooperatives have a responsibility to ensure that water systems are installed and properly maintained. Access to tailored financial water products gives cooperatives an opportunity to develop and own their systems. If financial institutions align their products with the dairy value chain, solutions like those in Dwaniro and Muyenje can be scaled up easily,” he said.
Eng. Wasswa added that collaboration with financial institutions would enable dairy cooperatives to access water infrastructure in a structured and affordable way, stressing the importance of negotiating loan terms that offer reasonable interest rates.
He reaffirmed the ministry’s commitment to creating an enabling environment through supportive policies, regulations, and partnerships that reduce investment risks and make financing more accessible. He also reminded cooperatives of their role in ensuring the long-term maintenance of installed systems.
He further acknowledged the contribution of development partners in expanding access to water solutions for dairy cooperatives, noting that the Ministry of Water and Environment does not always have sufficient resources to meet all the water infrastructure needs of dairy farmers.
Meanwhile, Nyamwaka Edna, a Project Manager at Heifer International, reported that the water systems installed in Dwaniro and Muyenje have significantly improved water quality for dairy operations. This has reduced milk rejection rates, minimized income losses, and enabled cooperatives to recover more revenue.
Echoing Eng. Wasswa’s remarks, Nyamwaka called on financial institutions to design affordable and farmer-friendly financial products that dairy cooperatives can use to scale up water solutions nationwide, replicating the success achieved in Kiboga and Nakaseke districts.
