AGRA

The need for Uganda to increase investments in agro-based industries to spur economic growth came into sharp focus at the Regional Industrialization Conference held from 24^th to 25^th September in Kampala, Uganda.

In a keynote address at the conference, the AGRA Uganda Country Director, Mr. David Wozemba, highlighted the important role of agro-industrialization in promoting economic development in the country. He noted that AGRA’s areas of work are integrated, allowing it to contribute to fostering a sustainable food system that creates long term impact.

The two-day conference brought together policymakers, development partners, and industrialization experts to explore climate smart solutions for sustainable industrialization.

He noted that despite agriculture’s declining contribution to GDP, now at 24% compared to 50% in 1995, the sector remains crucial to the economic growth of the country as it employs about 70% of Uganda’s working population.  Mr. Wozemba noted that agro-industrialization has the potential to address unemployment, boost exports, and ensure food security. This requires investment in food processing and packaging industries to address shifting consumer demands to capture emerging market opportunities.

The conference comes at a time when the government has begun implementing the Parish Development Model (PDM), an initiative aimed at stimulating economic growth, by channelling resources to the parish level to empower local communities to identify and develop their own ventures based on local resources and market demands.

The Minster of State for Investment and Privatization, Hon. Evelyn Anite, who was the chief guest at the conference, noted that, PDM is designed to provide local communities at parish level with increased access to credit, improved inputs, and training on modern farming practices to improve livelihoods and create employment opportunities at a local level. “PDM is expected to boost agricultural production and encourage value addition at the local level which will increases farmers’ incomes and strengthen the agricultural value chains, in the long run,” Hon. Anite said.

However, Mr. Wozemba noted that PDM is still facing challenges, including data gaps and the need for comprehensive community and market profiling that requires adequate funding.

He observed that the key to Uganda’s economic strategy is diversifying agricultural exports beyond primary commodities to enhance the country’s economic resilience and competitiveness on a global scale.

He emphasized the importance of skills development, entrepreneurship promotion, and a supportive policy environment to actualize the employment opportunities.

Mr. Wozemba called for collaboration between policymakers, private sector actors, and development partners to address challenges such as inadequate infrastructure and market access. “As development partners, we seek strategic alignment between national plans and investments that foster job creation, poverty reduction, and food security,” he noted.

As a call to action, he asked stakeholders to urgently rationalize and prioritize the value-chains that are the focus of the future national agro-industrialization efforts under the 4^th National Development Plan (NDP IV). “Large and persistent agricultural productivity gaps, in almost all agricultural enterprises, must be narrowed if adequate raw materials are to be made available to existing and planned agro-industries,” Mr Wozemba said.

He called for clarity on the appropriate role of Government of Uganda in promoting agro-industrial sector growth. “There is need for increased budgetary support to create a more-enabling environment, including electricity grid expansion, land tenure security, effective regulatory environment for agricultural inputs, cost-effective agricultural research and extension, testing facilities”. He also emphasized the need to urgently address the uncertain state of agricultural and agro-industrial sector statistics.