27 May 2020. COVID-19's Impact on Ugandan Agribusiness
The Resilient Efficient Agribusiness Chains in Uganda (REACH-Uganda) project worked with partners of the Embassy of the Kingdom of Netherlands to survey many agricultural stakeholders throughout Uganda to understand how COVID-19 has affected their agribusinesses.
The Resilient Efficient Agribusiness Chains in Uganda (REACH-Uganda) project worked with partners of the Embassy of the Kingdom of Netherlands to survey many agricultural stakeholders throughout Uganda to understand how COVID-19 has affected their agribusinesses.
The findings of this survey were presented. At the time of analysis, 89 private sector businesses had participated in the survey. This webinar highlighted not just the challenges presented to firms from Uganda’s private sector, but it also gave voice and agency to those who have found ways to innovate in this challenging business environment.
* The video below starts at 1:21:15 with the statement of Joseph Nkuma of NUCAFE: "It is now more critical, more than ever before that institutions, organisations that bring together farmers has become more and more important. (..) There is a need in a systemic way of empowering farmers to be able to access funding opportunities."
Mitigating the impact of COVID-19:
- Businesses are contemplating to sustain their operations by reducing the operational costs – reviewing the staff salaries/wages, working from home, laying off some staff, and suspending some activities. Some have asked for permission from the district COVID-19 task force to allow them to continue operating.
- Businesses have strategized the marketing of products and service delivery to the clients – door-to-door and adopting digital platforms for marketing and service delivery of products to the clients.
- Engaging the financial institutions to restructure the loan payment plan. Holding on/seizing advancements to farmers before delivering the outputs are key immediate considerations with some of the businesses.
- Digitalizing the payment system with the clients through mobile money has been targeted to enhance transactions for businesses.
Policy recommendations for support
- Requests for financial aid for partners to sustain their operations in the short run and/or post COVID-19 operations is the major exclamation for most of the businesses.
- The need for support to invest in transport equipment to facilitate the procurement and delivery of the products
- Seeking for long term financing aid to invest in value addition and reviving the struggling businesses is wanting.
- Support to digitalizing businesses – marketing, payments, services deliveries
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Kenneth Kagame is a retired medical professor of medicine. Since his retirement in 2011, his focus has been on dairy farming. Kagame’s 60-hectare farm is peri-urban, 12 km from Mbarara City centre. Ten hectares of the farm are devoted to bananas and fodder. Kagame keeps Friesian crosses, about 3F grade. Kagame is involved with a dairy cooperative Society, BUKAKA, under the umbrella UCCCU, in which he serves as the chairman. The cooperative owns a 3000-liter cooler and can collect and market milk for about 70 members.
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The webinar (Recording forthcoming) answered the following questions and more:
- What are the current critical challenges faced by firms working in Uganda’s agriculture sector?
- How have Ugandan firms led in business innovation?
- What are the key gaps remaining that the agriculture business sector still needs help in bridging?
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