Climate resilience and sustainable agriculture: Transforming the Sebei region through innovative partnerships

The Climate Resilient Agribusiness for Tomorrow (CRAFT) project has been at the forefront of addressing climate change challenges across the agriculture sectors of Kenya, Tanzania, and Uganda. Launched in 2018 with funding from the Netherlands Ministry of Foreign Affairs, this five-year initiative is led by SNV in collaboration with Wageningen University and Research, Agriterra, Rabo Partnerships, and the Accelerating Impacts of CGIAR’s Climate Research Africa. By fostering partnerships with the private and public sectors, CRAFT promotes the adoption of Climate Smart Agriculture (CSA) technologies, supporting farmers and agribusinesses to build climate resilience and sustainable growth.

Sebei farmers SACCO: A catalyst for change

Sebei Farmers’ Savings and Credit Co-operative Society Limited (Sebei Farmers SACCO) was founded in 2015 in Uganda, by a group of 31 farmers determined to uplift their communities. In just a few years, the SACCO has grown to over 5,000 members across Kapchorwa, Kween, and Bulambuli districts, with expansion plans into neighboring regions. The SACCO empowers rural communities through financial services, agricultural development, and market linkages, driving sustainable development in Uganda's eastern region.

In 2019, Sebei Farmers SACCO partnered with the CRAFT project to scale up climate-smart agricultural (CSA) solutions for sunflower farmers in the Sebei region. The partnership aimed to enhance farmers' resilience to climate change through access to drought-resistant seeds, post-harvest handling equipment and storage infrastructure, extension services, climatic and weather information, and crop insurance. The SACCO received financial support and technical assistance, resulting in significant improvements in business performance, capacity-building, and service delivery for its members.

To achieve the partnership objectives, CRAFT derisked the SACCO through a matchmaking grant focused on administrative and office costs, including staff salaries and extension service costs, capital investments such as the construction of a 1,000 MT warehouse, motorcycles for extension services, and training for SACCO staff and farmers. The grant was blended with tailored technical assistance in business development and advisory services, with a strong focus on improving internal capitalization, governance, and inclusion.

‘Over 70% of farmers in Kween district have adopted CSA practices and technologies to improve productivity, having seen the benefits to the Sebei farmers. Now, the district has integrated CSA practices and technologies in the extension messages’, reflects Patrick Cherotin, district extension officer.

This growth has enabled SEBEI to expand to other sub counties using its own investments due to the willingness of other community members to join the SACCO. The Africa Biodigester Component (ABC), through its Result Based Finance partner Sistema bio, has leveraged on the partnership to promote biogas uptake in the region.

Successes in business transformation and sustainability

Sebei Farmers SACCO has achieved remarkable success through its strategic focus on business management, member growth, and service innovation. Membership growth has fuelled significant improvements, such as reducing interest rates from 60% in 2019 to 24% by 2024. Tailored loan products for horticulture and biogas have become popular, empowering members to adopt sustainable energy solutions like biogas to combat deforestation.

The SACCO's commitment to financial inclusion has driven a 243% increase in women’s membership and expanded leadership roles for women and youth. Their Village Savings and Loan Association (VSLA) model has flourished, growing from 14 to 93 groups, many led by women and youth. Digitizing operations has enhanced efficiency and service delivery, reducing loan default rates even as membership has nearly doubled.

Increased productivity, incomes, and resilience

The SACCO’s promotion and subsequent adoption of climate smart agriculture practices and technology by the smallholder farmers, has enabled farmers to adapt to extreme weather conditions. In a region prone to high temperatures, unstable precipitation, water stress and sometimes flooding, CSA practices such as using high yielding, drought tolerant, early maturing soybean varieties came in handy for the farmers. The improved seeds coupled with good agronomic practices such as soil and water management practices resulted in increased productivity from 500kgs to 900kgs per acre of Agsun sunflower variety. Value chain diversification such as sorghum, rice, soybean and Simsim also helped enhance their resilience.

The SACCO also promoted alternative grain drying technology which minimises use of harmful fumigants and pest repellents, promoted the use of solar power for on and off farm activities contributing to the reduction of carbon emission, and trained farmers in improved practices resulting in reduced post-harvest produce losses, from 40% to 20%.

Expanding agribusiness resilience

Diversification has been a cornerstone of the SACCO's strategy. The establishment of ECOSIYA Company, providing renewable energy products, and Sebei Farmers’ Cooperative, focused on farm inputs and produce marketing, has strengthened the SACCO’s ability to serve more farmers with climate-smart solutions. These initiatives have led to partnerships with agri-input suppliers like Tulima Solar and produce off-takers like Mukwano Industries Limited, expanding the SACCO’s reach and impact.

In addition, strategic investments like the construction of a 1,000 MT store in Kween district for crop aggregation, processing, and marketing have created a one-stop center for smallholder farmers. This store facilitates improved market access and enhances farmers' earnings through bulk processing and plans for value addition.

Empowering communities and tackling unemployment

Sebei Farmers SACCO has been instrumental in creating over 5,684 on-farm jobs, while directly employing 21 people. Its commitment to hiring qualified staff through a cost-sharing arrangement with SNV has boosted operational efficiency. The SACCO has also played a critical role in tackling youth unemployment, encouraging young farmers to become leaders and entrepreneurs in their communities.

Lessons and future growth

Sebei Farmers SACCO’s rapid growth has brought new challenges, such as increased demand for loans and limited working capital. To address this, the SACCO is exploring additional investments in value addition machinery to strengthen markets and increase farmers' incomes. The SACCO is also focused on expanding its internal capital through retained earnings and share sales, while seeking external capitalization to meet its growing needs.

A bright future for Sebei farmers SACCO

Sebei Farmers SACCO has transformed the socio-economic landscape of Eastern Uganda by empowering thousands of farmers through innovative financial and agricultural solutions. With a strong business foundation and a focus on sustainability, the SACCO is well-positioned to continue driving rural prosperity and climate resilience in the region, setting a powerful example for agribusiness transformation across Africa.



This article was written by SNV's Bashir Kasekende, Fredrick Kibira, and Bonny Ocen with Sebei Farmers SACCO's Phelix Kwemboi and Limo Jan. For more information, contact the contributors through our Uganda Office.