Agriculture

NDPIII identifies agriculture as one of the key growth opportunities with the highest potential to generate employment and have positive multiplier effects on other sectors. It has played a central role in Uganda’s economy accounting for 26.42 per cent[1] of the country’s exports at a growth rate of 3.8 percent[2] and forming 1.65 percent of the GDP. During the 5 years of the NDP III, agriculture is projected to contribute as follows to the GDP;

Contribution to growth by agriculture FY2018/19 – 2024/25

 

18/19

19/20

20/21

21/22

22/23

23/24

24/25

 Real GDP

6.51

6.30

6.20

6.00

6.50

6.88

7.00

 Agriculture,   forestry &   fishing

1.72

1.65

1.61

1.55

1.66

1.75

1.78

 Cash crop

0.15

0.14

0.14

0.13

0.14

0.15

0.16

 Dairy   farming

0.11

0.10

0.10

0.10

0.11

0.12

0.12

 Food crop

0.96

0.92

0.90

0.87

0.94

1.00

1.02

 Fishing

0.14

0.13

0.13

0.12

0.13

0.13

0.13

 Livestock

0.11

0.11

0.11

0.10

0.11

0.12

0.13

 Other

0.26

0.24

0.23

0.21

0.22

0.22

0.22

Source: BOU Annual Report 2018/19

Agriculture is the predominant economic activity in rural areas which harbour about 76 percent of Uganda’s population. It employs about 70 percent of the working population and provides the first job for three-quarters of those aged between 15 and 24 years[3].

With the largest proportion of households (68.9 percent) still engaged in subsistence economy, improving the incomes of this segment of the population will be central in the NDP III through increasing their land productivity and value addition to their products. At the end of the five-year period, the following key results are expected to be achieved:

  1. Rate of growth of the agricultural sector from 3.8 percent to 5.1 percent; and
  2. Reduction in the percentage of households dependent on subsistence agriculture as a main source of livelihood from 68.9 percent to 55 percent.

Programme contribution

The overall development strategy of the plan is hinged on the need for rapid industrialization based on increased productivity and production in agriculture.

Agro-industrialization

Agro-processing is the backbone of the manufacturing sector accounting for approximately 60 percent of its total output. Agro-industrialization as a programme aims to increase commercialization and competitiveness of agricultural production and agro processing. Key results include:

  1. Increasing export value of selected agricultural commodities,
  2. Increasing the agricultural sector growth rate,
  3. Increasing labour productivity in the agro-industrial value chain,
  4. Creating jobs in agro-industry, and
  5. Increasing the proportion of households that are food secure.

The focus of the programme is an “area-based planning approach” based on a number of strategic commodities that are grown in different defined agro-ecological zones of the country to create backward and forward linkages in agro-processing.

 

Sector Contribution

The Ministry of Agriculture, Animal Industry & Fisheries (MAAIF) is in the process of designing a new Agriculture Sector Strategic Plan, (ASSP) for the period 2020/21-2024/25, which will provide more details on the priorities for the sector and the planned investments outlined in NDP III.

The new ASSP will be aligned with the overall goal of NDP III, seeking to support the development of a dynamic agro-industrial sector. It will focus on increasing the efficiency of key commodity value-chains, enforce local and international standards to ensure that the quality of agricultural produce is improved and strengthen links between farmers and sources of finance to support increased production and value addition

 

[1] BOU Annual Report 2018

[2] Overview of Performance of Uganda’s Economy FY2018/19, UBOS

[3] National Labour Force Survey