A recent impact assessment report from the State House Economic Monitoring Unit has highlighted challenges in Uganda's efforts to commercialize agriculture and promote local economic development.
The report, covering the period from 2010 to 2023, revealed that the government has installed and launched value addition facilities in areas lacking sufficient raw materials.
During a feedback session with local government representatives in Mbarara on Thursday, the report noted that, on average, 66% of agro-ecological zones and 34% of farmers received inputs, projects, and interventions unsuitable for their zones.
One example cited was a high-value addition facility installed in Arua City under the MATIP 2 program, which has struggled to operate due to a shortage of grains and cereals.
Test runs required sourcing grains from neighboring regions.
Similarly, agro-processing facilities (APFs) established under CAIIP-3 faced challenges, with shortages of raw materials affecting the functionality of maize milling machines, milk coolers, and coffee hullers.
The report pointed out that many interventions were supply-driven rather than demand-driven, failing to meet community needs effectively.
Robert Kansiime, the District Production Officer for Sheema District, criticized the mismatch between project locations and local agricultural output.
"Getting a place predominantly known for maize growing and putting a fruit factory there--really?" he remarked.
He added, "Decentralization is on paper. The instructions come from the center. I wonder if the central government conducts needs assessments for these projects."
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Charles Kiberu Nsubuga, the Chief Administrative Officer for Kiruhura District, emphasized the need for better planning.
"The government sometimes focuses on equal resource distribution rather than conducting sufficient needs assessments. Equal distribution in areas with no capacity will not work. Provide a startup but don't suffocate those already progressing. Thorough needs assessments are essential before implementation," he said.
The report also highlighted gaps in program design, including inadequate irrigation infrastructure.
For instance, some dams have limited water storage capacity, rendering them ineffective during the dry season.
Low occupancy in markets was also noted, particularly in Arua, Busia, and Masaka-Nyendo, largely due to poor design.
Even when funding was available, poor planning often delayed projects, with donor-funded initiatives typically delayed by an average of two years, especially those lacking feasibility studies.
