Commercialization of Agriculture: MAAIF Transforming Uganda's Agriculture Sector as Part of the NRM Manifesto Commitments

*By John Kusolo*

The commercialization of agriculture is at the heart of Uganda's transformation agenda, with significant strides made under the stewardship of Hon. Lt. Col (Rtd) Bright Kanyontore Rwamirama, Minister of State for Animal Industry. By prioritizing value addition and agro-processing, the government has strategically targeted poverty alleviation, increased household incomes, and boosted Uganda’s export potential. These interventions have propelled the agricultural sector into a significant driver of economic growth.

*Impact of Commercialization on Agriculture and Exports*

The deliberate push towards value addition and agro-processing has yielded remarkable results. Between FY 2020/21 and FY 2023/24, the value of Uganda's agricultural exports grew by 42%, from USD 1.678 billion to USD 2.535 billion. Concurrently, the proportion of households engaged in subsistence farming declined significantly from 68% in FY 2017/18 to 33% in FY 2023/24, surpassing the National Resistance Movement (NRM) manifesto target of 55%.

*Key Interventions in Value Addition and Agro-Processing*

1. Cassava Processing

The government has significantly invested in cassava value addition, a key staple crop in Uganda:

Through the Uganda Development Corporation (UDC), UGX 5.5 billion was invested in Bukona Agro Processors Ltd in Nwoya District. The factory processes cassava and cereals into ethanol for cooking, with a daily input capacity of 100 metric tons and a production output of 40,000 liters of ethanol per day.

The factory has directly employed 194 people, purchased 8,605 tons of raw materials from smallholder farmers, and injected UGX 9.027 billion into households through raw material payments.

The company exported denatured ethanol worth USD 1.65 million to Vivo Energy Kenya in FY 2022/23.

MAAIF supported 53 farmer organizations with value addition equipment to enhance cassava processing.

2. Fruit Processing

Value addition to fruits has seen a notable increase, with the establishment of several fruit factories:

Yumbe Mango Processing Plant: Completed in June 2023, the facility processes 80 metric tons per day of mangoes into pulp. The government invested UGX 13.1 billion in the plant.

Kayunga Pineapple Processing Plant: Equipped with a capacity of 12 metric tons per day, the plant is set for commissioning with an investment of UGX 3.3 billion.

Kapeeka Multi-Fruit Processing Plant: This plant processes 3 metric tons per hour, with UGX 2.6 billion invested so far.

Soroti Fruit Factory: Established as a public-private partnership, the factory focuses on processing oranges and mangoes. Efforts to revamp its operations are ongoing.

Plans are underway to construct a 12 metric ton/hour fruit processing factory in Nwoya and another at Bukalasa Agricultural College to benefit farmers in the Luwero region.

3. Coffee Processing

Coffee remains Uganda's top export commodity, with various interventions to boost its value:

The government has conducted a feasibility study for a USD 48 million soluble coffee plant, which will reduce reliance on imported soluble coffee and expand regional exports.

Under the Rwenzori AGRILED program, 57 motorized coffee pulpers were installed, benefiting cooperatives in Kasese District.

MAAIF supported 104 farmer organizations with coffee processing equipment, while 60 wet mills and motorized pulpers were distributed nationwide.

The number of roasted coffee brands increased from 25 in 2021 to 60 in 2023, reflecting growing local consumption.

Construction of a coffee certification laboratory in Kasese has commenced to ensure quality standards.

Overall, value addition facilities for coffee increased from 763 in FY 2020/21 to 1,351 in FY 2022/23.

4. Grain Milling

The government has supported 238 farmer organizations with maize processing equipment, while NARO has developed innovative prototypes, including maize shellers and cassava chippers, to enhance efficiency in grain processing.

5. Fish Processing

Uganda’s fish processing sector has witnessed steady growth:

The number of industrial fish processing factories increased from 6 in 2016 to 13 in 2023, generating USD 200 million in fish exports, making it the second-largest export commodity after coffee.

Innovations such as NARO’s fish smoking kiln, which significantly reduces cancer-causing compounds in smoked fish, have boosted compliance with international markets, including the EU and USA.

Fish maw from Nile perch has emerged as a lucrative export product, with China being a key market, although regulatory challenges persist.

The Way Forward

Hon. Lt. Col (Rtd) Bright

Kanyontore Rwamirama’s leadership underscores the need for continuous innovation and investment in agriculture. Plans are underway to expand agro-processing capacity, establish additional value addition facilities, and promote aquaculture to harness Uganda’s full agricultural potential. These interventions not only reduce post-harvest losses but also provide employment opportunities, especially for youth and women.

Through deliberate policies and investments, the commercialization of agriculture in Uganda has transformed the sector into a robust economic pillar. With sustained efforts and innovations, Uganda is on course to achieve self-sufficiency, reduce poverty, and enhance its competitiveness in regional and global markets. The vision championed by Hon. Lt. Col (Rtd) Bright Rwamirama and his team is a testament to the transformative power of agriculture in Uganda’s socio-economic development.