The agricultural sector, which employs over 69% of the workforce and contributed nearly 26% to the GDP in 2015/16, remains Uganda’s most significant industry. The government increased the budgetary allotment to the agriculture sector by 65% to UGX 832.42 billion for the 2016–17 fiscal year.
Grain, sugarcane, cotton, tea, and coffee are the principal agricultural products, accounting for 20% of total export revenue and 33% of foreign exchange revenue. Agro-processing and value addition of Uganda’s traditional cash crops, particularly cotton ginning, tea processing, coffee hauling, and tobacco handling, are prioritized under the National Development Plan 2.
Agro-processing and value addition in agricultural production can come in a variety of shapes and levels, from the most basic to the most complex. Examples include packaging, processing, cooling, drying, extracting, and any other type of processes that set the product apart from the original raw material. There are several chances for investment in agriculture and agro-processing, including the production of cut flowers for export, the processing of oil seeds, the production of cotton for ginning, spinning, and weaving, and the production of cattle goods.
Opportunities for investment
Investment opportunities exist in:
- Commercial farming in both crops and animal industries, as well as aquaculture;
- Value addition (Agro-industries -Agro-food industries;
- Manufacturing of inputs (fertilizers, pesticides, etc);
- Cold storage facilities and logistics;
- Farm Machinery manufacturing and assembly;
- Packaging;
- Irrigation Schemes.
Wheat products, the rapidly expanding milk production and processing industry, fruit processing, fruit drying, grain milling, meat processing, leather tanning, and fish processing are other potentials. Coffee, bananas, and oil seed crops (sesame, soybean, sunflower, etc.) are among the top three crops produced in Uganda. In addition, it is a significant producer of tea, organic cotton, tobacco, cereals, fresh fruits, vegetables, and nuts, as well as flowers, poultry, and freshwater fish.
The nation has been divided into several production zones, and all of these zones are well connected to a reliable national road grid network to simplify logistics and the supply of agricultural goods and sources of raw materials.
How to start a farming business in Uganda
One of the most profitable enterprises to enter nowadays in Uganda is farming. According to research, Uganda’s agriculture market is predicted to develop at a CAGR of 4.5% between now and 2027, which is another reason why the sector needs more workers.
Here are the procedures to follow to launch an agriculture business in Uganda;
Step 1: figure out the type of farming you want to start
Although there are many others, crop farming and animal husbandry are the two most common agricultural activities. Decide in advance how big or little you want your crop-growing enterprise to be.
You don’t have to start big or small. Start right now in your backyard. You’ll be able to make the finest choices feasible if you concentrate on what to do, how much money you need to save, and a variety of other difficulties.
Step 2: Get trained on the crop you want to grow
If the crop you wish to farm is not a common practice in the area you have chosen, you might need to conduct further research on it. The best agricultural practices differ depending on the type of farm you want to build, so you should do further research before getting started.
Step 3: Locate a farming site
If you want to start growing the crops you want, you might need to look for acreage. You might think about getting one or borrowing one. If you don’t have enough money to establish your farm, you can choose to borrow some.
Step 4: Start deforestation of the land
The cropland must then be cleared of all trees, grasses, shrubs, and woods. To do this, either a machine or human labor can be employed.
Consider this when making your choice because farms with an area of 1 to 3 acres or less are best suited for manual labor. However, you should employ a machine if you intend to purchase or acquire more than 5 acres.
Burn the vegetation that has been removed after clearing the area to increase farming productivity and decrease labor requirements.
Step 5: Prepare ridges to start planting
If you plan to engage in large-scale farming, you might need to hire a tractor to begin creating ridges for you.
All you need to do to prepare land for small-scale farming is to employ laborers to create heaps or ridges for you.
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