Investment opportunities in agriculture
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  • 1. Investment Opportunities in the Ugandan Agriculture Sector Presentation by Hon. Hope R. Mwesigye Minister of Agriculture, Animal Industry and Fisheries at the EMRC 2010 Agribusiness Forum 3rd – 6th October Speke Resort Munyonyo, Kampala
  • 2. Introduction • Special welcome to delegates to the Uganda Country Special session • Appreciate the EMRC continued cause to promote Agricultural Development in Africa
  • 3. Agriculture in Uganda • Agriculture most important sector in Africa • 22% of Uganda’s GDP • 77% of Uganda population depends on Agriculture • 48% of total Uganda exports • Agriculture led growth key for Uganda’s Development
  • 4. Agricultural policy options supportive to investment in the agricultural sector in Uganda. - Enhancing production and productivity Strong regulation and quality assurance Supportive physical infrastructure Pests and disease control Promoting investments in agro-processing and value addition - Reforming and strengthening sector institutions - Enhanced surveillance and monitoring of the water bodies
  • 5. Overall Macro Policy framework Government has put in place sound macro economic framework conducive for investment e.g. liberalization, privatization, incentive regimes, abolition of export taxes, investment guarantees, externalization of funds, and setting up of Uganda Investment Authority as a one stop centre for investor services.
  • 6. Agricultural Sector Objectives • Increase incomes of farming households by increasing production and productivity • Ensure household food and nutrition security • Create on-farm and off-farm employment opportunities • Promote value-addition to agricultural products • Promote domestic and external trade in agricultural products
  • 7. Why invest in the Ugandan agricultural sector • Rising domestic, regional and international markets for agricultural commodities • Rising global demand for food; an opportunity for increased production • Renewed support of agriculture at national, continental and global levels • Membership to bigger market, EAC, COMESA, EU, AGOA, etc
  • 8. Investment opportunities in the Agricultural sector in Uganda 1. Dairy and dairy products (1.5 bn lts annually with potential to more than double) - Powdered milk production - Flavoured and UHT Milk - Production of butter and ghee - Cheese production - Cream and ice-cream - Establishment of collection centres and distribution facilities, etc.
  • 9. Meat and meat products • Beef exports; (12 m cattle, 13 m Goats, 38m poultry, all with potential to more than double) • • • • • • Modern abattoirs Leather processing Small ruminant production Goats and chicken Animal feeds processing and distribution Commercial breeding and production of semen for local and export market
  • 10. Fisheries sub sector i. Manufacture of value added fish products e.g. canned fish, fish sausages, fish soups, etc; (382,000mt of fish landed annually) ii. Aquaculture development – premium species e.g. cage fish, eel fish, etc iii. Leather processing for export iv. Dry/smoked fish for local and regional markets
  • 11. Cotton and textiles • High class textile manufacture especially for regional markets (Potential of 500,000 bales annually) • Mixed fibre production e.g. fibre yarn and fabrics • Tailoring and designing school on large scale and commercial basis
  • 12. Fruits and Vegetables • Processing of organic fruits and vegetables for export • Processing of fruit and vegetables • Export of dehydrated fruits • Export of fruit concentrates
  • 13. Floriculture • Industry growing at a fast rate of 25% in a year • Expansion of Rose industry • Growing of other floriculture plants other than roses • Manufacture of green house plastics • Manufacture of packing materials
  • 14. Cocoa, Coffee, Tea • Establishment of high value processing plants - Coffee; Uganda 9th in the World and 2nd in Common Wealth. • Cocoa – 15,000mt with potential to double • Branding of Ugandan tea – Sold at Mombasa auction and used to blend other teas.
  • 15. Agribusiness services (i) Cold chain (ii) Packaging (iii) Cargo freight (iv) Inputs manufacture; e.g. tractors, vaccines, irrigation equipment, chemicals (v) Agricultural Insurance (vi) Establishment of an agricultural bank (vii)Construction of warehouse chain facilities across the country.
  • 16. Other opportunities in the sector • Honey processing for export • Cassava processing for industrial starch both for local and external markets • Packaging of beans and pulses for export.
  • 17. Some success stories of Agribusiness projects • Uganda Breweries linkage with barley Commercial Farmers Association – Production of beers • Kinyara Sugar Company – Linkage with sugar commercial outgrowers – sugar production and processsing • Sameer Agriculture and Livestock Ltd. – Dairy processing, Dairy cooperatives • Tianjin Machinery Company (U) Ltd. – Farm Inputs Manufacture
  • 18. Success stories Cont’d • BIDCO Palm Oil Project – Vegetable Oil Production and processing • Kaweeri Coffee Project – Coffee production and processing • Green Fields (U) Ltd. – Fish processing
  • 19. THANK YOU