Equity Bank, Guru Nanak Push Digital Payments for Uganda’s Agricultural Supply Chain

Uganda’s agricultural sector could be moving further away from cash-based transactions following a partnership between Equity Bank Uganda and Guru Nanak Oil Mills aimed at digitising payments across the agricultural value chain.

The initiative targets produce aggregators, traders and eventually individual farmers who supply crops to Guru Nanak, one of Uganda’s major agricultural processors.

Despite the rapid expansion of mobile money and digital banking, agricultural trade in many parts of Uganda remains heavily dependent on physical cash. Produce aggregators often receive large cash payments from processors before transporting the money to farmers and traders in rural areas, exposing them to security risks and making it harder to track transactions.

Equity Bank and Guru Nanak now want to change that model by introducing direct digital payments and bringing more players in the agricultural supply chain into the formal financial system.

Guru Nanak Managing Director Surjit Singh said moving away from physical cash would improve the safety of suppliers while giving them better control over their earnings.

“Transitioning away from physical cash is an essential step for our suppliers,” Singh said, adding that instant digital transfers, financial literacy training and easier access to cash-out services would help farmers manage their income and reinvest in their businesses.

Under the programme, Equity Bank is deploying financial officers at mill sites, processing centres and key trading locations to register suppliers onto its digital banking platforms and provide financial literacy support.

Equity Bank Uganda Managing Director Gift Shoko said the bank’s strategy would begin with produce aggregators before expanding deeper into farming communities.

“Our approach is two-layered: first, we connect with aggregators delivering produce to the mill, and once that pipeline is digitised, we reach individual farmers to ensure the entire value chain operates securely and efficiently,” Shoko said.

The first phase will focus on aggregators supplying produce to Guru Nanak, creating a digital trail of deliveries and allowing the processor to make electronic payments directly to suppliers.

The programme is expected to later expand to smallholder farmers and commercial growers in key production areas, including Nwoya District.

Beyond reducing the risks associated with transporting large sums of cash, the partners say the shift could improve record-keeping, transparency and financial planning across the sector.

For farmers and aggregators, a digital transaction history could also help build a financial profile that may eventually improve access to banking services and agricultural financing.

The partnership reflects a broader push to modernise Uganda’s agricultural economy by connecting farmers and rural businesses to formal financial services, while making the movement of money along the supply chain faster, safer and easier to track.