Skip to main content

OIL IS COMING BUT LET US NOT FORGET OUR GOLD


The country is operating on a time table that first oil will be seen in 2020.

There is a lot of frenetic activity around building supporting infrastructure, getting investment approvals, ensuring local participation and any number of other things to ensure readiness the moment the oil starts gushing down the pipeline to the coast.

And so we should.

I was intrigued the other day to read in the Kenyan press how Kisumu County, just across Lake Victoria from us, has set upon an ambitious project to ensure egg and poultry meat self-sufficiency for the county within the next few years.

Under the plan Kisumu County will train 100 farmers every month over the 12 month pilot period. The intended aim is to be able to satisfy the county’s demand for 25,000 broilers and 75,000 eggs daily.

Whereas I would prefer that this was private sector driven deal, I like this plan for a number of reasons not least of all that it shows leadership by the county and secondly, it relies on locally sourced materials and thirdly, that the production of such volumes can very well set up Kisumu, over time,  as a hub for all that is poultry.

And for Uganda an agricultural initiative like this would suit as to a tee, as we are ideally suited for agriculture with nearly half the region’s arable land here and a fifth of the land under a water, it does not take a rocket scientist to see our competitive advantage staring us in the eye.

We can borrow a leaf from them.

What if we trained 1,200 farmers for poultry in Busoga another 500 in Masaka for goats, 500 farmers for mangoes and oranges in eastern Uganda and any number of agricultural products from around the country.

Some attempts are underway in that direction, but we need to be a bit more systematic and include the private sector more fundamentally to ensure sustainability of the project.

I propose we rethink our current model and go beyond just supplying farmers with inputs to organising, educating and facilitating them to penetrate established and new markets.

I have no doubt that our farmers are not productive for lack of application or good lands but because they do not know what to do.

We are still using the hoe to till the land and even there according to agriculture ministry statistics we do not have enough hoes in the country.  Our farmer is seeing his sweat disappear in post-harvest losses, which can be as high as half the crop. And our farmers because of the measly amounts they produce have little to no bargaining power in the market, losing more value to middlemen and the general market.

It is no wonder they continue to wallow in poverty despite the general growth in the economy over the last few decades.

It is a linear logic: Our farmers need to produce more and lose less during postharvest as a way to enhance their bargaining power in the market.

And another important outcome of increasing our farmer productivity is that it will form a good foundation for a robust agroindustry.

A cursory search on the internet for a tomato paste making plant indicate that you can get one for between $10,000 (sh36m) and $600,000 (sh2.2b). Not out of this world numbers. The catch is the capacity. The smaller one can manage a load of a ton of tomatoes an hour!

I also discovered that in 2007 Uganda produced 14,000 tons of tomatoes, most of which went to our own kitchens. But let us assume we converted all our tomatoes into tomato paste, using 50 small plants (one for every two districts) we would go through Uganda’s annual crop in under two weeks.

To keep the plants working at at least 50 percent capacity all year around, we need to produce at least 12-times as much tomato as in 2007.

It is within the realm of possibility. We have the manpower. We have the land. We even have the capital.

And that is only for tomatos. The same principles can be applied to matoke, coffee, fruits, vegetables, goats.

There are issues of markets, as markets will not just lap up all you produce, but if we can begin to ramp up production we can address the other impediments as we go along.  That’s how you do business. I should know.

(FEBRUARY 2018)

Comments

Popular posts from this blog

OUR HISTORICAL SITES SHOULD NOT GO UNATTENDED TO

Recently I was at Makerere University to attend a wedding ceremony. I hadn’t been on the university’s grounds in a while. I was shocked at how run down Mary Stuart and Lumumba Halls were. They are in need of serious work. These thoughts were reawakened with the recent launch of the coffee table book “Beyond the Reeds and Bricks” promoted by the tourism ministry, the cross cultural foundation of Uganda and the European Union Delegation. The book which is aimed at the protection of historical sites and buildings in Kampala, Entebbe and Jinja, is a moving collection of pictures of buildings and sites we know, but probably take for granted when we pass them as we go about our business. "Entebe za Mugula in Entebbe, Mackay’s Cave, the post office in Entebbe, the Stanbic Bank Branch in Jinja, Hamu Mukasa’s house in Mengo, the main building at Makerere , the Bahai Temple, Kibuli mosque and many other sites have pride of place among the 60 pictures in this book, which is ...

NOT ONLY THE HARDWARE BUT THE SOFTWARE TOO

In the middle of September the United Nations released its annual Human Development Indicator (HDI). This index serves as an indicator of the quality of life of a country’s people by measuring the health, education, inequality, poverty and security standards. Aside from the statistical measures of development like GDP growth, this is obviously a better measure of how people are actually doing. In this year’s HDI report Uganda was ranked 162 out of 189 countries with a HDI score of 0.516. The index goes from zero to one, the nearer you are to one the better. Our score puts us in the low human development category. But as bad as that sounds we have been worse. In 1990, the earliest year that these figures were compiled our score was 0.311 even the UN recognises that we have improved 66 percent in the last three decades. According to the UN figures life expectancy has risen to 60.2 years   from 45.5 in 1990; expected years of schooling has doubled to 11.6 fr...

THE MUKWANO I KNEW

We have lost the greatest Ugandan entrepreneur of our time, Mr Amirali Karmali, more popularly known as Mzee Mukwano. I have known Mzee Mukwano for more than 40 years and most of what I am today is due to him. And I am not alone. "He has helped countless people through school – as he did me. Helped countless more in business – as he did me. And he has been a steadfast friend and source of support to countless more – as he was to me.... I first met Mukwano around about 1977. My mother was the secretary for the chief of operations at Uganda Airlines, a man I knew only as Hamid. Mukwano had come to charter the Uganda Airlines’ Hercules plane and I happened to be around the office then. He was a short man, an unassuming man, but clearly a serious businessman who would charter the plane to bring in goods that were in high demand here. He run a popular whole sale shop in Nakasero – Egesa Commercial Agencies, a beehive of activity and the go-to place for anythin...

WE NEED A BETTER SOLUTION FOR KAMPALA TRAFFIC

I am sure I am not the only one feeling it. Kampala’s traffic is becoming increasingly unbearable. Even the removal of roundabouts around the city seem to have an opposite effect to the intended purpose of easing traffic flow in the city. Kampala Capital City Authority (KCCA) has an ambitious plan of flyovers, underground tunnels and railway transport, which should help the cause, I hope. The snarl ups that we are coming fast accustomed to, are not only an issue of teeth grinding inconvenience but have a real cost on our economy by hampering and increasing the cost of doing business. A recent World Bank report suggests that as an economy, we are losing about sh3trillion annually due to traffic jams. The losses come in form of delayed deliveries, higher fuel consumption and the health consequences of seating in a smoke filled environment. To put this in perspective this is the combined budget of the health, agriculture and ICT ministries in this year’s budget. Or ...

HOW TO RECOGNISE A PONZI AND NOT FALL VICTIM

Another Ponzi scheme has come crashing down around the ears of hundreds of “investors”. Unsurprisingly. In its recent reincarnation poor Ugandans were lured into a scheme where they bought computer tablets. This entitled them to a monthly pay off, $100, and a Christmas bonus for their children. In this case the unsuspecting investors -cum -victims were being given a share certificate. Meaning you accept to take the part of the risk in this project. Which was inadvertently reducing their burden of risk and liability for the issuing company. I leave that area to smart lawyers to handle.   As is always the case with these things, it’s not quite clear where the pay-out will come from. A common characteristic of these schemes is that you might get initial payments before you starting missing a few and the stories begin. The promoters of these schemes or scams often use the money from the latest entrants to pay the older “investors” until one of two things happen. Either...

WE NEED FASTER TURN AROUND ON OUR ROAD PROJECTS

During a recent trip to China I was shocked to find properly paved roads and first class infrastructure deep in the countryside, hundreds of kilometres away from the capital, Beijing. I rode the high-speed railway out of Beijing, doing more than 300 kilometres per hour and I can attest I have never been on anything like it anywhere in the world. Not in Europe. Not in the States. Nowhere. I was blown away and wondered why we can’t at least do a tenth of this at home. I have to say I was pleasantly surprised when I used the Entebbe Expressway from the airport. I was in Kampala in under an hour. The Entebbe road had become a nightmare. I was shaken out of my good feeling when I had to make a trip to Tororo the other day. On my way back I spent two and half hours between Mukono and Kampala, about the same time it took me from Tororo up to Mukono. Clearly there is a lot of work to be done on our transport infrastructure. The full extent we probably don’t appreciate,...