January 2015
Supporting cooperatives in Uganda

SNV in Agriculture
• Sustainable Markets
• Food & Nutrition Security
• Climate Smart Agriculture
• Systemic Value Chain Development
• Inclusive Business Ecosystem
• Multi stakeholder processes, platforms, partnerships
• Commodities
 Cassava, Coffee & Cocoa, Dairy, Horticulture, Livestock, Rice…
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Some 2015 opportunities in Uganda
• Finance for Agriculture project (EKN/DGIS)
• Oilseed Sub Sector Platform (SNV/IFAD)
• PPP for production (IFAD)
• Climate Smart Agribusinesses (DFID)
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OSUP
B2B
linkages
Supporting
access to
services &
commodities
Linkages to
Finance &
Investments
Innovation
&
Technology
Upgrade
Advocacy
Information
sharing
OSSUP… emergence of a business ecosystem
• 4 production hubs in
Uganda:
 4 different value chain
configurations
 4 different inclusion
challenges
 4 multi stakeholder
platforms
 One network: OSSUP
 One common strategy:
emergence of
commercial inclusive
business development
services
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F4A: emergence of inclusive finance ecosystem
1. Systematic risks @
finance institution level
2. Firm level risks @
cooperative level
3. Operational risks @
chain level
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Capacitating FIs & SACCOs
(Offer)
Rating & graduation of Coops
(Demand)
Finance (online) platform
(market)

Methodological challenge
• Why?
 Which framework or (development)agenda?
• What?
 Which tool(s)?... Diagnosis, graduation, profiling coops
• Who?
 Which service delivery channel?
• Where?
 Which sectors?
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Questions…
• Should cooperatives be preferred inclusion champions?
• Do cooperatives have a specific role/advantage to play in
inclusive markets?
• What are –or should be- the comparative advantages of
cooperatives among other potential inclusive businesses?
 For smallholder farmers
 For value chain systems or subsector competitiveness
 For inclusive growth or development
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Paradoxal characteristics of a coop
How to strike a smart balance between:
1. Social (members) & economic (business) profitability?
2. Advocacy/lobby & economic functions?
3. Local democracy and continuity of management?
4. Valuing production capacity and react to market signals?
5. Commodity and farming system logics?
6. Collective interests (members’ benefits) and individual interests
(business costs)?
7. Individualistic vertical growth (competition) and strategic
horizontal value chain management (cooperation)?
Which service ecosystem/package for coops?
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