Beekeeping is an old art that has been practiced in Uganda for a very long time and several studies have concluded that Uganda’s honey is of good quality for it comes from natural forests and is produced by healthy bees .Therefore, beekeeping provides an excellent opportunity for rural communities to jump out of poverty. Government of Uganda has earmarked beekeeping as one of one of the national strategic interventions under Poverty Eradication Action Plan (PEAP) and the Plan for Modernization of Agriculture (PMA) to support income generation for rural communities and for export. Furthermore, the Uganda Export Promotion Board has designed the honey export strategy. There are also several private sector initiatives in support of beekeeping.
Despite all these efforts, small-scale producers using traditional hives continue to dominate the beekeeping industry. Farm management practices are still traditional and subsistence in nature. An analysis of Uganda’s exports for the last five years indicates that honey and other hive products hardly feature on the list of exports.
The draft National Apiculture Policy for Uganda (2004) puts the number of beekeepers in Uganda at 80,000 producing 5,000 tons of honey annually. However, these figures are questionable because there is no system in place to collect even basic data on beekeeping. Therefore, no one knows exactly how many beekeepers are in Uganda, how much honey is being produced per season and how big is the national honey markert.Although no reliable data is available, anecdotal evidence suggests that the local market for honey is significant and demand outstrips supply.
For example, on the domestic market, the prices per ton of raw honey are much higher than international raw honey prices. Findings from interactions with beekeepers at Arua Park in Kampala indicate that some honey is currently being informally imported from Tanzania and Democratic Republic of Congo.
The pertinent questions that have remained unanswered are, What needs to be done to unlock the potential of beekeeping and are government and private sector initiatives aimed at improving beekeeping in Uganda quick fixes or real solutions to the problem?
Minutes of meetings by the Beekeeping Multi-stakeholder Platform (BMSP) and The Uganda National Apiculture Development Organization indicate that inadequate information on the profitability of beekeeping, lack of reliable data for investment decisions making and failure by government to finalize the formulation the National Apiculture Policy which has remained in draft form since 2004 are the major bottlenecks to improved beekeeping in Uganda. There are also very few and scattered cases of model beekeepers that can demonstrate and convince others that beekeeping is profitable. To make matter worse, the interventions of government, donors and NGOs are uncoordinated and haphazard. Instead of using a value chain approach to identify and address constraints along the whole chain, they prefer to use a “catchment area approach” Yet the performance of one segment of the value chain affects the growth of all other segments.
Likewise, evidence from most districts of western Uganda, suggests that the major constraints are the low rate of hive colonization and beekeepers limited knowledge on improved beekeeping technologies such as queen rearing and colony dividing.
Therefore, there is need for government to urgently finalize the National Apiculture Policy and ensure that its provisions and recommendations are fully implemented. There is also need for bodies such Uganda National Bureau of Statistics and National Planning Authority to provide reliable data on beekeeping in Uganda. There is also need to put more emphasis on improving beekeepers skills through carefully conducted demonstrations instead of conventional trainings for beekeepers.
Ambrose Bugaari
Enterprise Development Specialist
Wednesday, April 22, 2009
Tuesday, April 7, 2009
Why most businesses in Uganda die in infancy
In Uganda and especially with the mushrooming shopping malls, hardly a day passes without a new business being started. Based on that, many people and research reports have concluded that Ugandans are an enterprising lot.
The Global Entrepreneurship Monitor Report 2004 indicated that over one in every three adult Ugandans is engaged in some form of entrepreneurial activity, resulting in Uganda being ranked the second most entrepreneurial country in the world. However, the study also showed that the rate of failure of businesses in Uganda was also one of the highest in the world, citing that for every business that was started nearly one other closed.
This means that there is high formation rate of new enterprises but also high failure rate of newly formed enterprises. Likewise, a casual look at Newspapers in Uganda indicates that a number of businesses are being put under receivership. Therefore, it is one thing to start a business and another to sustain it.
This is in agreement with Charles Ocici’s (2008) observation that Ugandan entrepreneurs face very high business failure rates, with the majority of businesses failing to make it through their first year of operation. According to him, just a handful of businesses make it to third year.
The above is also in agreement with findings of a survey report by Charles Tushabomwe-Kazooba (2006) titled “Causes of Small Business failure in Uganda” that the startup factors posed a greater threat than those that are encountered once the business has been established. As such, business people who successfully negotiate the initial startup hurdles have greater chances of future success in their businesses. But the question that arises is if Ugandans are truly enterprising why the high rate of business failure?
Experience from the filed and research findings from discussion held with business consultants in Kampala indicate that many people in Uganda have attempted to start a career in business without the slightest idea of what it entails. They estimated that about 80% of Ugandans ended up in business by accident with little or prior preparation partly due to high unemployment levels, copy and apply syndrome, and unplanned retirement or retrenchment. Although some easily learn on the job, others spend a lifetime in business without learning even the basics of business management or learn too slow to cope with the ever-changing business environment.
The Ministry of Finance, Planning and Economic Development (2007) attributes high rates of business failure to the lack of entrepreneurial skills, limited access to information on market opportunities and high quality and affordable business development services and lack of finance, adequate technical and management support services .
From personal experience, poor customer handling is also partly to blame for business failure in Uganda. One therefore, wonders why Ugandans continue to be poor at handling customers yet several studies have found that it costs about five times as much in time and money to attract a new customer, as it does to retain an existing one (Naumann 1995).
Lastly, many Ugandans are at first not aware of the extent of their entrepreneurial ability and they don’t carry out a market survey to determine the viability of the venture. They start businesses to just exploit what initially looks like a potentially profitable business opportunity only to realize later that they do not have what it takes to become an entrepreneur.
It is with this view in mind that the efforts of government and the private sector must be placed on the development of entrepreneurial behaviour if businesses are to succeed.
Ambrose Bugaari
Specialist in Enterprise Development
The Global Entrepreneurship Monitor Report 2004 indicated that over one in every three adult Ugandans is engaged in some form of entrepreneurial activity, resulting in Uganda being ranked the second most entrepreneurial country in the world. However, the study also showed that the rate of failure of businesses in Uganda was also one of the highest in the world, citing that for every business that was started nearly one other closed.
This means that there is high formation rate of new enterprises but also high failure rate of newly formed enterprises. Likewise, a casual look at Newspapers in Uganda indicates that a number of businesses are being put under receivership. Therefore, it is one thing to start a business and another to sustain it.
This is in agreement with Charles Ocici’s (2008) observation that Ugandan entrepreneurs face very high business failure rates, with the majority of businesses failing to make it through their first year of operation. According to him, just a handful of businesses make it to third year.
The above is also in agreement with findings of a survey report by Charles Tushabomwe-Kazooba (2006) titled “Causes of Small Business failure in Uganda” that the startup factors posed a greater threat than those that are encountered once the business has been established. As such, business people who successfully negotiate the initial startup hurdles have greater chances of future success in their businesses. But the question that arises is if Ugandans are truly enterprising why the high rate of business failure?
Experience from the filed and research findings from discussion held with business consultants in Kampala indicate that many people in Uganda have attempted to start a career in business without the slightest idea of what it entails. They estimated that about 80% of Ugandans ended up in business by accident with little or prior preparation partly due to high unemployment levels, copy and apply syndrome, and unplanned retirement or retrenchment. Although some easily learn on the job, others spend a lifetime in business without learning even the basics of business management or learn too slow to cope with the ever-changing business environment.
The Ministry of Finance, Planning and Economic Development (2007) attributes high rates of business failure to the lack of entrepreneurial skills, limited access to information on market opportunities and high quality and affordable business development services and lack of finance, adequate technical and management support services .
From personal experience, poor customer handling is also partly to blame for business failure in Uganda. One therefore, wonders why Ugandans continue to be poor at handling customers yet several studies have found that it costs about five times as much in time and money to attract a new customer, as it does to retain an existing one (Naumann 1995).
Lastly, many Ugandans are at first not aware of the extent of their entrepreneurial ability and they don’t carry out a market survey to determine the viability of the venture. They start businesses to just exploit what initially looks like a potentially profitable business opportunity only to realize later that they do not have what it takes to become an entrepreneur.
It is with this view in mind that the efforts of government and the private sector must be placed on the development of entrepreneurial behaviour if businesses are to succeed.
Ambrose Bugaari
Specialist in Enterprise Development
NAADS: It is business as usual or un usual?
NAADS is conceptually a good program but it is the implementation that is problematic. There are a number of baffling issues that must be addressed if it is to achieve the intended objectives.
Therefore, following the suspension of the program by the President in September 2007 and its reinstatement in January 2008, one would have expected immediate changes in implementation strategy. However, an examination of the enterprises that are currently being selected by farmers and supported by NAADS indicates that there is still a problem right from enterprise selection to implementation.
Example NAADS has advertised for advisory services in poultry, piggery, bananas, cassava and apiary for farmers in Kalangala District. Farmers have been engaged in these enterprises all their life but nothing much has changed. The questions are: What is it that NAADS is doing differently? What magic is NAADS going to use to commercialize these enterprises?
A number of reviews on NAADS have indicated that the rate of adoption (of technologies being promoted) is low. One such review was carried out by The International Food Policy Research Institute. In its report (2007) titled “Assessing the Impact of the National Agricultural Advisory Services (NAADS) in the Uganda Rural Livelihoods”, it indicated that despite positive effects of NAADS on adoption of improved production technologies and practices, no significant differences were found in yield growth between NAADS and non-NAADS sub-counties for most crops, reflecting the still low levels of adoption of these technologies even in NAADS sub-counties.
Then, one wonders why the adoption rate is still low after all the trainings farmers have had. May be there is something wrong with the approach. May be these technologies do not make sense to farmers or farmers are not consulted when technologies are being designed and implemented.
Yet, according to the late Nyerere, farmers have been on the land for a long time and therefore, the methods they use are the results of long experience in the struggle with nature; even the rules and taboos they honour have a basis in reason. It is not enough to abuse a traditional farmer as old-fashioned; we must try to understand why he is doing certain things, and not just assume he is stupid.
Additionally, an examination of enterprise farmers have selected for implementation as reported on NAADS website indicates that NAADS is focusing more on the promotion of improved varieties of crops and some other yield enhancing technologies than in promoting improved soil fertility management and conservation of natural resources .
This raises concerns about the sustainability of these enterprises, since they may lead to rapid soil nutrient mining and degradation of natural resources on which they depend. Surprisingly, NAADS strategy on integrating natural resources management in the implementation of activities has largely remained on paper and enterprises that enhance conservation of natural resources are not prioritized
NAADS has also been putting more emphasis on trainings. However, knowledge is of little use unless it is acted upon. Experiences from other projects suggest that farmers do not change their ways of thinking and doing things unless there are demonstrations that convince them that change will lead to a more desirable situation and that farmers will adopt and invest in modern technologies, if the technologies are demonstrated to be technologically and economically viable, are inexpensive and can easily be adapted to their situation.
NAADS therefore, needs to put more emphasis disseminating useful and practical information through well-planned and carefully conducted demonstrations and provision of inputs instead of conventional training programmes.This is because, farm demonstrations serve as one of the most effective extension education tools ever developed.
Lastly, NAADS is one of the seven priority areas in the framework for the Plan for Modernization of Agriculture. In order to provide a complete package, all pillars of PMA were meant to ride side by side. However, the roll out of the pillars has varied. This therefore, means that no synergy has been achieved among the pillars. MAAIF should facilitate the implementation of the other pillars of PMA if NAADS is to have the desired impact.
Ambrose Bugaari
Specialist in Enterprise Development
Therefore, following the suspension of the program by the President in September 2007 and its reinstatement in January 2008, one would have expected immediate changes in implementation strategy. However, an examination of the enterprises that are currently being selected by farmers and supported by NAADS indicates that there is still a problem right from enterprise selection to implementation.
Example NAADS has advertised for advisory services in poultry, piggery, bananas, cassava and apiary for farmers in Kalangala District. Farmers have been engaged in these enterprises all their life but nothing much has changed. The questions are: What is it that NAADS is doing differently? What magic is NAADS going to use to commercialize these enterprises?
A number of reviews on NAADS have indicated that the rate of adoption (of technologies being promoted) is low. One such review was carried out by The International Food Policy Research Institute. In its report (2007) titled “Assessing the Impact of the National Agricultural Advisory Services (NAADS) in the Uganda Rural Livelihoods”, it indicated that despite positive effects of NAADS on adoption of improved production technologies and practices, no significant differences were found in yield growth between NAADS and non-NAADS sub-counties for most crops, reflecting the still low levels of adoption of these technologies even in NAADS sub-counties.
Then, one wonders why the adoption rate is still low after all the trainings farmers have had. May be there is something wrong with the approach. May be these technologies do not make sense to farmers or farmers are not consulted when technologies are being designed and implemented.
Yet, according to the late Nyerere, farmers have been on the land for a long time and therefore, the methods they use are the results of long experience in the struggle with nature; even the rules and taboos they honour have a basis in reason. It is not enough to abuse a traditional farmer as old-fashioned; we must try to understand why he is doing certain things, and not just assume he is stupid.
Additionally, an examination of enterprise farmers have selected for implementation as reported on NAADS website indicates that NAADS is focusing more on the promotion of improved varieties of crops and some other yield enhancing technologies than in promoting improved soil fertility management and conservation of natural resources .
This raises concerns about the sustainability of these enterprises, since they may lead to rapid soil nutrient mining and degradation of natural resources on which they depend. Surprisingly, NAADS strategy on integrating natural resources management in the implementation of activities has largely remained on paper and enterprises that enhance conservation of natural resources are not prioritized
NAADS has also been putting more emphasis on trainings. However, knowledge is of little use unless it is acted upon. Experiences from other projects suggest that farmers do not change their ways of thinking and doing things unless there are demonstrations that convince them that change will lead to a more desirable situation and that farmers will adopt and invest in modern technologies, if the technologies are demonstrated to be technologically and economically viable, are inexpensive and can easily be adapted to their situation.
NAADS therefore, needs to put more emphasis disseminating useful and practical information through well-planned and carefully conducted demonstrations and provision of inputs instead of conventional training programmes.This is because, farm demonstrations serve as one of the most effective extension education tools ever developed.
Lastly, NAADS is one of the seven priority areas in the framework for the Plan for Modernization of Agriculture. In order to provide a complete package, all pillars of PMA were meant to ride side by side. However, the roll out of the pillars has varied. This therefore, means that no synergy has been achieved among the pillars. MAAIF should facilitate the implementation of the other pillars of PMA if NAADS is to have the desired impact.
Ambrose Bugaari
Specialist in Enterprise Development
Aid and Poverty game in Uganda
Aid and poverty game in Uganda.
The Daily monitor of Tuesday, February 5, 2008 carried a story titled “Review aid policy, Germany President tells donors” .The Germany President, Mr Horst Kohler pointed out that the international community has to give more attention to Africa by working on more supportive and equal rather than imposed western aid terms. I concur with his views.
Aid is given for many different purposes and in many different forms; it is therefore not plausible to argue that aid never works. However, what is clear is that despite Uganda having been a beneficiary of a lot of aid for the last 22 years, poverty is still with us and is not about to go away.
Stringent conditions are attached to aid funds that have little relevance to Uganda’s. Take the example of the "structural adjustment policies" promoted by World Bank and IMF. These policies required Uganda to concentrate on privatization, and debt servicing at the expense of providing education, health, and social care to her citizens. The result is increased poverty
Foreign aid has more benefits for donors than recipients. In a report released by Action Aid in June 2005, the organization claims that two-thirds of donor money goes back to donor countries and, thus, is not available for poverty reduction in developing countries. In addition to a large portion of funds going to foreign consultants, the report argues that donor governments often require money to be spent in certain ways.
EURODAD (2006) in its report provocatively titled “World Bank and IMF conditionality: development Injustice” examined the conditions that the World Bank and IMF attach to development finance to poorest countries. The report reveals that impoverished countries face an acceptably high number of conditions in order to gain access to World Bank and IMF development finance .Uganda for example faced a staggering 197 conditions attached to its W/B fifth Poverty Reduction Support Credit Issued in 2005.
Additionally, the colonial past or geo-political objectives of donors take precedence over poverty reduction in the aid game. William Easterly (2005) in his article titled “Money is not a cure for Africa's poor”, indicates that while the cold war has ended, other emerging trends in geo-politics, for example the “war on terror”, mean that rich countries will always need allies among poorer nations, and transfer of resources will be one way to achieve this.
Likewise, Aidan Hartley (2005), in his report titled “Aid helps the rich at the expense of the poor”; argues that aid to Africa has not worked over the last 50 years because it enriches the big men at the cost of ordinary people. He contends that Foreign aid weakens, the state in Africa, and the only people who grow stronger are the donors. He avers that aid damages the prospects for ordinary people to better their lives, and turns them into victims.
Also due to IMF concerns about safeguarding macro-economic stability in Uganda, government has been constrained from spending the bulk of aid received in recent years A report by independent Evaluation Office of IMF (2007) titled “IMF and aid to Sub-Saharan Africa”, contends that governments in low –income countries bound by an IMF Poverty Reduction and Growth Facility spent on average, only 28 percent of aid received during 1999-2005.Then why give aid that recipients are not allowed to utilize?
Corruption in Uganda is a major obstacle to making aid effective and has worsened the problem of aid game. Corruption exists mainly in procurement, public service pay roll and manifests itself in the following forms: abuse of office, fraud and embezzlement, misappropriation of funds and assets, paying for undelivered goods and services, paying salaries to none existing workers (ghost employees), disappearance or destruction of official records to destroy evidence, false declaration of imports and exports, bribery and extortions, over / under invoicing, demanding for commissions on work done and nepotism.
In light of the above increasing productivity and competitiveness of our products, agro processing, enlarging markets or increasing demand, zero tolerance to corruption, good governance and proper implementation of poverty eradication frameworks such as PEAP and PMA are the only or best ways of sustaining economic growth not aid
Ambrose Bugaari
Specialist in Enterprise Development
The Daily monitor of Tuesday, February 5, 2008 carried a story titled “Review aid policy, Germany President tells donors” .The Germany President, Mr Horst Kohler pointed out that the international community has to give more attention to Africa by working on more supportive and equal rather than imposed western aid terms. I concur with his views.
Aid is given for many different purposes and in many different forms; it is therefore not plausible to argue that aid never works. However, what is clear is that despite Uganda having been a beneficiary of a lot of aid for the last 22 years, poverty is still with us and is not about to go away.
Stringent conditions are attached to aid funds that have little relevance to Uganda’s. Take the example of the "structural adjustment policies" promoted by World Bank and IMF. These policies required Uganda to concentrate on privatization, and debt servicing at the expense of providing education, health, and social care to her citizens. The result is increased poverty
Foreign aid has more benefits for donors than recipients. In a report released by Action Aid in June 2005, the organization claims that two-thirds of donor money goes back to donor countries and, thus, is not available for poverty reduction in developing countries. In addition to a large portion of funds going to foreign consultants, the report argues that donor governments often require money to be spent in certain ways.
EURODAD (2006) in its report provocatively titled “World Bank and IMF conditionality: development Injustice” examined the conditions that the World Bank and IMF attach to development finance to poorest countries. The report reveals that impoverished countries face an acceptably high number of conditions in order to gain access to World Bank and IMF development finance .Uganda for example faced a staggering 197 conditions attached to its W/B fifth Poverty Reduction Support Credit Issued in 2005.
Additionally, the colonial past or geo-political objectives of donors take precedence over poverty reduction in the aid game. William Easterly (2005) in his article titled “Money is not a cure for Africa's poor”, indicates that while the cold war has ended, other emerging trends in geo-politics, for example the “war on terror”, mean that rich countries will always need allies among poorer nations, and transfer of resources will be one way to achieve this.
Likewise, Aidan Hartley (2005), in his report titled “Aid helps the rich at the expense of the poor”; argues that aid to Africa has not worked over the last 50 years because it enriches the big men at the cost of ordinary people. He contends that Foreign aid weakens, the state in Africa, and the only people who grow stronger are the donors. He avers that aid damages the prospects for ordinary people to better their lives, and turns them into victims.
Also due to IMF concerns about safeguarding macro-economic stability in Uganda, government has been constrained from spending the bulk of aid received in recent years A report by independent Evaluation Office of IMF (2007) titled “IMF and aid to Sub-Saharan Africa”, contends that governments in low –income countries bound by an IMF Poverty Reduction and Growth Facility spent on average, only 28 percent of aid received during 1999-2005.Then why give aid that recipients are not allowed to utilize?
Corruption in Uganda is a major obstacle to making aid effective and has worsened the problem of aid game. Corruption exists mainly in procurement, public service pay roll and manifests itself in the following forms: abuse of office, fraud and embezzlement, misappropriation of funds and assets, paying for undelivered goods and services, paying salaries to none existing workers (ghost employees), disappearance or destruction of official records to destroy evidence, false declaration of imports and exports, bribery and extortions, over / under invoicing, demanding for commissions on work done and nepotism.
In light of the above increasing productivity and competitiveness of our products, agro processing, enlarging markets or increasing demand, zero tolerance to corruption, good governance and proper implementation of poverty eradication frameworks such as PEAP and PMA are the only or best ways of sustaining economic growth not aid
Ambrose Bugaari
Specialist in Enterprise Development
Monday, April 6, 2009
The poor need to invest in tree planting
The poor need incentives to invest in commercial tree planting
Published by the New Vision Newspaper on Monday 10th November 2008
There are a number of laws on management and utilisation of forests, forest products and services in Uganda. However, forests continue to be degraded at alarming rates. The latest report of a study undertaken by National Forestry Authority (2008) indicates that Uganda’s forest cover has reduced to 17% of total land area between 1990 and 2005. If the current rate of annual change in forest cover (- 1.9%), continues without being addressed, the economy and the livelihoods of many Ugandans will be seriously affected. This has been compounded by the progressive capacity decline for agriculture on which over 80% of Ugandans depend for a living.
Although, there are a number of isolated and uncoordinated government and civil society initiatives to support tree planting, policy emphasis is skewed on large scale commercial plantations. Opportunities exist under the National Forest Plan (2000), Forestry and Tree planting Act (2003) and the land Act (1998) for entrepreneurs to lease land within forest areas for 25- 49 years to plant trees.National Forest Authority (NFA) with funding from the European Union has also put in place the Saw log Production Grant Scheme (SPGS) to promote the business of growing commercial trees in order to develop a sustainable forestry industry in Uganda.
However, reports from field visits suggest that the beneficiaries of commercial plantations support initiatives by NFA are mostly financially capable individuals or companies. There are limited incentives for the poor to invest in commercial tree planting. Yet, discussions with those who have invested in commercial tree planting indicate that it costs approximately between UGX 800,000-1,000,000 to clear the ground, procure seedlings, pesticides and hire workers.
It should not be a blow to NFA that forest degradation is on the increase because the wealth individuals who have leased land in forest reserves are just interested in making money and are not bothered about maintaining the integrity of the natural resource base while the poor who leased land cannot afford the costs involved in commercial tree planting. The poor also have immediate pressing needs that cannot wait for trees to mature. In fact evidence on the ground indicates that some of the poor, who leased the land instead of planting tress, have established rice and maize gardens in forest reserves.
Therefore, while, the Saw log Production Grant Scheme may create employment and provide incentives for a few who are rich to invest in commercial tree planting, its capacity to deliver on poverty eradication and sustainable forest management is highly doubted because it leaves out the poor.
The assumption that large scale commercial plantations will boost economic development which will trickle down to the poor; that it will pay taxes and reinvest its profits productively and provide jobs and income is flawed.
In light of the above, in addition to focusing on commercial tree planting, NFA, civil society and the private sector should also provide incentives to enable the poor to invest in forest conservation and meet their short term needs .Such incentives may take the form of forest-based enterprises and saving schemes that provide a secure place for the poor to save and borrow in modest amounts. However, for these forests –based enterprises to lead to conservation, they must be commercially viable, done on a large scale and capable of delivering significant benefits to the community.
The development of local forest-based enterprises represents an opportunity for strengthening the livelihoods of poor, forest-dependent people, at the same time providing economic incentives to conserve forests through sustainable management.
Ambrose Bugaari
Specialist in Rural and Conservation Enterprise Development
Published by the New Vision Newspaper on Monday 10th November 2008
There are a number of laws on management and utilisation of forests, forest products and services in Uganda. However, forests continue to be degraded at alarming rates. The latest report of a study undertaken by National Forestry Authority (2008) indicates that Uganda’s forest cover has reduced to 17% of total land area between 1990 and 2005. If the current rate of annual change in forest cover (- 1.9%), continues without being addressed, the economy and the livelihoods of many Ugandans will be seriously affected. This has been compounded by the progressive capacity decline for agriculture on which over 80% of Ugandans depend for a living.
Although, there are a number of isolated and uncoordinated government and civil society initiatives to support tree planting, policy emphasis is skewed on large scale commercial plantations. Opportunities exist under the National Forest Plan (2000), Forestry and Tree planting Act (2003) and the land Act (1998) for entrepreneurs to lease land within forest areas for 25- 49 years to plant trees.National Forest Authority (NFA) with funding from the European Union has also put in place the Saw log Production Grant Scheme (SPGS) to promote the business of growing commercial trees in order to develop a sustainable forestry industry in Uganda.
However, reports from field visits suggest that the beneficiaries of commercial plantations support initiatives by NFA are mostly financially capable individuals or companies. There are limited incentives for the poor to invest in commercial tree planting. Yet, discussions with those who have invested in commercial tree planting indicate that it costs approximately between UGX 800,000-1,000,000 to clear the ground, procure seedlings, pesticides and hire workers.
It should not be a blow to NFA that forest degradation is on the increase because the wealth individuals who have leased land in forest reserves are just interested in making money and are not bothered about maintaining the integrity of the natural resource base while the poor who leased land cannot afford the costs involved in commercial tree planting. The poor also have immediate pressing needs that cannot wait for trees to mature. In fact evidence on the ground indicates that some of the poor, who leased the land instead of planting tress, have established rice and maize gardens in forest reserves.
Therefore, while, the Saw log Production Grant Scheme may create employment and provide incentives for a few who are rich to invest in commercial tree planting, its capacity to deliver on poverty eradication and sustainable forest management is highly doubted because it leaves out the poor.
The assumption that large scale commercial plantations will boost economic development which will trickle down to the poor; that it will pay taxes and reinvest its profits productively and provide jobs and income is flawed.
In light of the above, in addition to focusing on commercial tree planting, NFA, civil society and the private sector should also provide incentives to enable the poor to invest in forest conservation and meet their short term needs .Such incentives may take the form of forest-based enterprises and saving schemes that provide a secure place for the poor to save and borrow in modest amounts. However, for these forests –based enterprises to lead to conservation, they must be commercially viable, done on a large scale and capable of delivering significant benefits to the community.
The development of local forest-based enterprises represents an opportunity for strengthening the livelihoods of poor, forest-dependent people, at the same time providing economic incentives to conserve forests through sustainable management.
Ambrose Bugaari
Specialist in Rural and Conservation Enterprise Development
Wednesday, March 25, 2009
Why Farmers need to Produce for the Market. Published by the New Vision of 12th March 2009
Currently, there are efforts to revive cooperatives and a wide range of programs supported by government of Uganda such as NAADS and other private sector organizations, to help farmers market their produce. Government has also formulated the Marketing and Agro-Processing Strategy (MAPS) under the ministry of Trade, Tourism and Industry (MTTI).
However, a discussion paper on “ Promoting Market Access for the Rural Poor” by the International Fund for Agricultural Development(IFAD) in 2003 indicates that the emergence of private sector market intermediaries to fill the vacuum left by the withdraw of the state has not worked as expected. Evidence suggests that most farmers stop at production and have not established long term relationships with the buyers both in the domestic and export markets.
Yet, an analysis of agricultural market food price reports by Fit Uganda Limited for 2008 and January 2009 indicates that food prices have increased and new markets such as Southern Sudan have opened up. Therefore, a number of questions like, ‘Why are Ugandan typical farmers not taking up these opportunities?’ ‘Is government doing enough to help farmers market their produce?’ ‘Is the private sector touching the right buttons as regards farmer’s access to markets have remained un -answered.
According to Grace Maiso, a Program Manager with a non Governmental organization –Environmental Alert, the consumer is the biggest driver of market demand. Interventions on the supply side alone will not transform smallholder agriculture. There is need to focus on the demand side by increasing the purchasing power of Ugandans to enable them consume more of the products that are being produced by farmers.
Additionally, the government, private sector and Civil society organizations should support initiatives that enable farmers shift from producing what the market can absorb, to producing to meet specific requirements of buyers. By linking with buyers in advance of production, farmers would have a more assured market at an agreed price.
To avoid the problem of middlemen, farmers need to be organized into producer organizations. However, for these producer organizations to succeed they must be able to provide demand driven services and represent the interests of their members to stand alone as sustainable business organizations, enter into and deliver on contracts, demand and pay for extension services as well as access financing and become recognized players in the market.
To make matters worse, many farming households are trapped in a vicious cycle of selling food at low prices at the time of harvest, only to buy the very same kinds of food back at much higher prices a few months later. There is therefore, need to scale-up government initiatives like warehouse receipt systems, which provide farmers with a way to access reliable markets at reduced price risk and also provide a source of credit finance. This call for the creation of certified produce Bulking Centers in rural areas across all regions of Uganda where the stored produce could either be sold to the warehouser for current market price, deposited for retained ownership, used to secure bank loans and later sold, or withdrawn for personal use or a combination of this list.
There is need to support a viable marketing system that delivers other services to farmers including relevant market information, proper storage facilities, standards of produce and their enforcement, in addition to providing linkages between the farmers and the buyers. However, personal interactions with farmers in Mubende and Kyenjojo districts indicate that market information distributed by Government and Civil society organizations is sometimes obsolete by the time it is accessed by farmers.
Ambrose Bugaari
Enterprise Development Specialist
Ambrose_bugaari@yahoo.com
Currently, there are efforts to revive cooperatives and a wide range of programs supported by government of Uganda such as NAADS and other private sector organizations, to help farmers market their produce. Government has also formulated the Marketing and Agro-Processing Strategy (MAPS) under the ministry of Trade, Tourism and Industry (MTTI).
However, a discussion paper on “ Promoting Market Access for the Rural Poor” by the International Fund for Agricultural Development(IFAD) in 2003 indicates that the emergence of private sector market intermediaries to fill the vacuum left by the withdraw of the state has not worked as expected. Evidence suggests that most farmers stop at production and have not established long term relationships with the buyers both in the domestic and export markets.
Yet, an analysis of agricultural market food price reports by Fit Uganda Limited for 2008 and January 2009 indicates that food prices have increased and new markets such as Southern Sudan have opened up. Therefore, a number of questions like, ‘Why are Ugandan typical farmers not taking up these opportunities?’ ‘Is government doing enough to help farmers market their produce?’ ‘Is the private sector touching the right buttons as regards farmer’s access to markets have remained un -answered.
According to Grace Maiso, a Program Manager with a non Governmental organization –Environmental Alert, the consumer is the biggest driver of market demand. Interventions on the supply side alone will not transform smallholder agriculture. There is need to focus on the demand side by increasing the purchasing power of Ugandans to enable them consume more of the products that are being produced by farmers.
Additionally, the government, private sector and Civil society organizations should support initiatives that enable farmers shift from producing what the market can absorb, to producing to meet specific requirements of buyers. By linking with buyers in advance of production, farmers would have a more assured market at an agreed price.
To avoid the problem of middlemen, farmers need to be organized into producer organizations. However, for these producer organizations to succeed they must be able to provide demand driven services and represent the interests of their members to stand alone as sustainable business organizations, enter into and deliver on contracts, demand and pay for extension services as well as access financing and become recognized players in the market.
To make matters worse, many farming households are trapped in a vicious cycle of selling food at low prices at the time of harvest, only to buy the very same kinds of food back at much higher prices a few months later. There is therefore, need to scale-up government initiatives like warehouse receipt systems, which provide farmers with a way to access reliable markets at reduced price risk and also provide a source of credit finance. This call for the creation of certified produce Bulking Centers in rural areas across all regions of Uganda where the stored produce could either be sold to the warehouser for current market price, deposited for retained ownership, used to secure bank loans and later sold, or withdrawn for personal use or a combination of this list.
There is need to support a viable marketing system that delivers other services to farmers including relevant market information, proper storage facilities, standards of produce and their enforcement, in addition to providing linkages between the farmers and the buyers. However, personal interactions with farmers in Mubende and Kyenjojo districts indicate that market information distributed by Government and Civil society organizations is sometimes obsolete by the time it is accessed by farmers.
Ambrose Bugaari
Enterprise Development Specialist
Ambrose_bugaari@yahoo.com
Why Farmers need to Produce for the Market
Currently, there are efforts to revive cooperatives and a wide range of programs supported by government of
However, a discussion paper on “ Promoting Market Access for the Rural Poor” by the International Fund for Agricultural Development(IFAD) in 2003 indicates that the emergence of private sector market intermediaries to fill the vacuum left by the withdraw of the state has not worked as expected. Evidence suggests that most farmers stop at production and have not established long term relationships with the buyers both in the domestic and export markets.
Yet, an analysis of agricultural market food price reports by Fit Uganda Limited for 2008 and January 2009 indicates that food prices have increased and new markets such as
According to Grace Maiso, a Program Manager with a non Governmental organization –Environmental Alert, the consumer is the biggest driver of market demand. Interventions on the supply side alone will not transform smallholder agriculture. There is need to focus on the demand side by increasing the purchasing power of Ugandans to enable them consume more of the products that are being produced by farmers.
Additionally, the government, private sector and Civil society organizations should support initiatives that enable farmers shift from producing what the market can absorb, to producing to meet specific requirements of buyers. By linking with buyers in advance of production, farmers would have a more assured market at an agreed price.
To avoid the problem of middlemen, farmers need to be organized into producer organizations. However, for these producer organizations to succeed they must be able to provide demand driven services and represent the interests of their members to stand alone as sustainable business organizations, enter into and deliver on contracts, demand and pay for extension services as well as access financing and become recognized players in the market.
To make matters worse, many farming households are trapped in a vicious cycle of selling food at low prices at the time of harvest, only to buy the very same kinds of food back at much higher prices a few months later. There is therefore, need to scale-up government initiatives like warehouse receipt systems, which provide farmers with a way to access reliable markets at reduced price risk and also provide a source of credit finance. This call for the creation of certified produce Bulking Centers in rural areas across all regions of
There is need to support a viable marketing system that delivers other services to farmers including relevant market information, proper storage facilities, standards of produce and their enforcement, in addition to providing linkages between the farmers and the buyers. However, personal interactions with farmers in Mubende and Kyenjojo districts indicate that market information distributed by Government and Civil society organizations is sometimes obsolete by the time it is accessed by farmers.
Ambrose Bugaari
Ambrose_bugaari@yahoo.com
Profile for Ambrose Bugaari
Ambrose Bugaari is a an Enterprise Development Specialist (Rural Agri-business and conservation enterprises) with 12 years experience in implementing donor- funded and international rural development and natural resource management programs and has spent the last 12 years working directly with communities in rural Uganda assisting them by providing technical skills and capacity building activities required to build sustainable businesses and improve their livelihoods and ensure sustainable natural resources management . The majority of my work has been in the rural agri-business and forest- based enterprise sectors of western, central, eastern and West Nile regions ofUganda
Ambrose Bugaari is a an Enterprise Development Specialist (Rural Agri-business and conservation enterprises) with 12 years experience in implementing donor- funded and international rural development and natural resource management programs and has spent the last 12 years working directly with communities in rural Uganda assisting them by providing technical skills and capacity building activities required to build sustainable businesses and improve their livelihoods and ensure sustainable natural resources management . The majority of my work has been in the rural agri-business and forest- based enterprise sectors of western, central, eastern and West Nile regions of
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