Uganda: Prioritizing agro-businesses in national planning

Uganda is making significant strides in prioritizing sustainable agro-industrialization as a key component of its national planning in an effort to drive inclusive growth and improve value addition across the agricultural value chain. In a recent interview with CNBC Africa, David Wozemba from AGRA shed light on the country's strategies for boosting the agricultural sector and the potential impact it could have on the economy. Wozemba emphasized the critical role of agro-industrialization in transforming Uganda's agricultural landscape and highlighted the importance of value addition to enhance the competitive advantage of the sector. The government of Uganda, through its national planning authority and the national development plan three, recognizes the significance of agro-industrialization in propelling the country forward. AGRA, as a key player in the agricultural sector, aims to ensure that livelihood-influencing aspects are taken into consideration and that all actors within the value chain are aligned towards the goal of making Uganda a hub for agro-industrialization. The agricultural value chain strategy developed by the government is instrumental in organizing and coordinating the efforts of various stakeholders within the ecosystem to drive value addition and sustainable growth. To attract investors and promote long-term investments in the sector, the government has introduced incentives such as tax holidays on imported machinery, support for agriculture inputs like fertilizers, and the establishment of industrial free zones. These initiatives are aimed at creating a conducive environment for investors and encouraging participation in the agricultural value chain. The government's commitment to promoting agro-industrialization is evident through the political will and support demonstrated at all levels, from the president to the minister of agriculture. Entities like the Uganda Investment Authority have been instrumental in streamlining investment processes and reducing bureaucratic hurdles to facilitate resource mobilization and project implementation. The government's focus on enhancing trade routes and logistics infrastructure is crucial for leveraging opportunities presented by the African Continental Free Trade Area (AfCFTA). Investments in road networks, market linkages, and regional trade facilitation initiatives are key priorities for the government to harness the potential of regional markets and promote cross-border agricultural trade. However, challenges such as high financing costs remain barriers to the sector's growth and require concerted efforts to address. Climate change poses a significant threat to the agricultural sector, and the government is working towards providing mechanisms for smallholder farmers and the private sector to access climate finance for adaptation, resilience, and mitigation strategies. Collaborative efforts with global climate funds and the implementation of climate-smart initiatives are essential to build climate resilience and ensure sustainable agricultural practices in the face of changing environmental conditions. Overall, Uganda's focus on agro-industrialization, value addition, and climate-smart agriculture holds immense potential for driving economic growth, enhancing food security, and creating inclusive opportunities for all stakeholders in the agricultural value chain.