A REVIEW AND ANALYSIS OF POLICIES ON FARMERS ENTREPRENEURSHIP DEVELOPMENT

Transcription

1 A REVIEW AND ANALYSIS OF POLICIES ON FARMERS ENTREPRENEURSHIP DEVELOPMENT

2 A publication of PELUM, Misereor, EU 2011 Researcher: Alex Lwakuba Editors: Stella Grace Lutalo, Kerstin Lange Layout and Design: Cover picture: Paul Laboke (NERICA-4 Seed Multiplication in Bungatira Sub- county, Gulu,District)

3 A REVIEW AND ANALYSIS OF POLICIES ON FARMERS ENTREPRENEURSHIP DEVELOPMENT

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5 Table of Contents List of Acronyms ii Foreword iv Acknowledgements v CHAPTER ONE 1 I.0 Introduction and Background Importance of Agriculture in Uganda Agriculture Sector Performance Opportunities and Challenges in the Agriculture Sector Participatory Ecological Land Use Management Association (PELUM) Uganda and Agri Pro Focus (APF) Study Objectives Structure of the Report 2 CHAPTER TWO METHODOLOGY Introduction Key Definitions and General Terms The Multi Stakeholder Workshop Data Collection and Analysis 4 CHAPTER THREE FINDINGS Introduction Farmer Entrepreneurship Prioritized Policies, Plans and Agreements Other National Policies and Agreements Legal Frameworks Strategies and Plans Expired Strategies 38 CHAPTER FOUR CONCLUSIONS Introduction Farmers Entrepreneurship Development and Agriculture Sector Growth Implications of the Significance of Farmers Entrepreneurship Development Policy Implications Policy Framework Analysis 42 CHAPTER FIVE RECOMMENDATIONS Understanding and Appreciating Farmers Entrepreneurship Integration of Farmer Entrepreneurship Development in the Uganda Policy and Legal Framework Specific Policy Related Actions Other National Policies and Agreements National Sector Strategies and Plans National Legislation and Farmers Entrepreneurship Implementation of Policies, Strategies and Plans Monitoring and Evaluation of Policy Implementation Appreciating and Popularising Farmers Entrepreneurship Development 52 References i

6 List of Acronyms ACF Agriculture Credit Facility ACP Africa Caribbean and Pacific ADF Agriculture Development Fund AGOA Africa Growth Opportunity Act APF Agri Pro Focus ATAAS Agriculture Technology and Agribusiness Advisory Services AU Africa Union CAADP Comprehensive Africa Agriculture Development Plan CCF Commercialization Challenge Fund CCI Cross Cutting Issues CNDF Comprehensive National Development Fund COFOG Classification of Functions of Government COMESA Common Market for East and Central Africa CSO Civil Society Organization DP Development Partners DPSF Decentralization Policy Strategic Framework DSIP Development Strategy and Investment Plan EAC East Africa Community EACMP East Africa Common Market Protocol EBA Everything But Arms EU European Union FO Farmer Organization FY Financial Year GDP Gross Domestic Product GoU Government of Uganda HIV/AIDS Human Immune Virus/ Acquired Immune Deficiency Syndrome HLFO Higher-Level Farmer Organizations HLFO Higher-level farmer organizations ICT Information Communication Technology LDC Least Developed Countries LED Local Economic Development LG Local Government LGSIP Local Government Sector Investment Plan MAAIF Ministry of Agriculture, Animal Industry and Fisheries MAPS Marketing and Agro Processing Strategy MDA Ministries, Departments and Agencies MoFPED Ministry of Finance, Planning and Economic Development MOP Microfinance Outreach Plan MTCS Medium Term Competitive Strategy MTI Ministry of Trade and Industry MTTI Ministry of Trade, Tourism and Industry NAADS National Agricultural Advisory Services NAP National Agriculture Policy NARO National Agricultural Research Organization NCDP National Cooperative Development Policy NDP National Development Plan NEMA National Environment Management Authority NEPAD New Partnership for Africa s Development NES National Export Strategy NIP National Industrial Policy NISSP National Industrial Sector Strategic Plan NPA National Planning Authority NTP National Trade Policy ii

7 PEAP PELUM PFA PMA PWD RCS RDS SACCO SEP SME ToR UEPB UFNP UGX UNCTAD UNFFE WTO Poverty Eradication Action Plan Participatory Ecological Land Use Management Prosperity for All Plan for the Modernisation of Agriculture People With Disabilities Rural Credit Scheme Rural Development Strategy Savings and Credit Cooperative Organization Strategic Export Program Small and Medium Enterprises Terms of Reference Uganda Export Promotion Board Uganda Food and Nutrition Policy Uganda Shillings United Nations Center for Trade and Development Uganda National Farmers Federation World Trade Organization iii

8 Foreword A Review And Analysis Of Policies On Farmers Entrepreneurship Development iv

9 Acknowledgements v

10 vi A Review And Analysis Of Policies On Farmers Entrepreneurship Development

11 CHAPTER ONE I.0 Introduction and Background 1.1 Importance of Agriculture in Uganda Analysis of Uganda s agriculture sector contribution to national economic growth, poverty reduction, food security and export performance over the last three decades reveals that the sector has been and still is one of the major critical determinants for improvement of household livelihoods and the socioeconomic transformation of the country. This importance is evident in the fact that agriculture contributes up to 20 percent of GDP, accounts for 48 percent of exports and provides a significant proportion of the raw materials for industry. Food processing alone accounts for 40 per cent of total manufacturing and the sector also employs 73 percent of the population aged 10 years and older. Furthermore, due to Uganda s high population annual growth rate of 3.2 percent, aggregate food production levels need to satisfy the nutritional requirements of a fast growing population that includes one million additional persons annually. 1.2 Agriculture Sector Performance Agriculture sector performance measured in terms of outcomes over the last two decades as well as outputs portrays a mixed picture. While real growth in agricultural output grew at an average of about 4 percent between 1987 and 2002, a rate, which was even higher than the population growth rate, it declined precipitously from 7.9 percent in 2000/01 to 0.1 percent in 2006/07, before recovering to 1.3 percent and 2.6 percent in 2007/08 and 2008/09, respectively. This rate of growth was below the population growth rate of 3.2 percent, implying that per capita agricultural GDP has been declining. Household surveys for the years 1992, 1999, 2002 and 2005 show strong correlation between agriculture sector growth and poverty reduction. The surveys indicate that national poverty levels declined from about 60 per cent in 1992 to 34 percent in 1999, rising to 38 per cent in 2002 and falling to 31 per cent in The fiscal year 1992/93 was a particularly poor year for agricultural production and corresponded to the highest measured poverty rate, while 2002/03 was a positive (but below average growth) year but it corresponds to the small rise in the poverty rate in that year. The surveys also indicate that the food security situation has improved marginally since 1992, although the trends indicate positive movement, the recommended caloric intake is still far from satisfactory and the proportion of the food insecure population continues to oscillate periodically. The indicators of nutritional status, unsatisfactory as they are, have also improved a little. Agriculture s share contribution to total export performance has been on the decline over the last two decades, however the sector is still the biggest earner of export revenues and the projections indicate that if informal trade was factored in the projections, the revenue contribution is definitely higher. Furthermore, the agriculture sector is still the largest employer in Uganda, although there are concerns with regard to the sector s increased share of the working population. It would be expected that there would be a net migration of labour to the other sectors with structural changes clearly emerging as the agriculture sector share of GDP declines. The fact that this is not happening is a major source of concern and one that is under close scrutiny. An analysis of sector performance with regards to outputs also shows a mixed picture, production trends of major crops manifest both substantial yield reductions and increases, while productivity trends indicate that farm production level situations are still far below the attainable potential research station yield. The situation with regard to the livestock and fisheries sector is not very much different from the crop situation, with substantial increases in the national herd for almost every animal species, increased beef, poultry and dairy production and significant increases in annual fish catch but with increasing declines in the last decade. 1.3 Opportunities and Challenges in the Agriculture Sector Comprehensive reviews of the agriculture sector over the last four years 2008 to 2011, indicate that there are a number of opportunities to sustainably increase agriculture sector growth rates in the short 1

12 to medium term. However, it also highlights the fact that there are a number of challenges which include declining production and productivity; limited or inadequate access to sustainable markets; a not always favourable enabling policy and legal environment to facilitate increased private sector role in agriculture development; and institutional related issues. A key concern related to the above is farmers seemingly entrenched subsistence orientation and failure to transition to commercialized agriculture. One of the causes of this orientation is related to limited or lack of farmers entrepreneurship also associated with a not so conducive environment to nurture the entrepreneurial skills considered necessary for addressing the numerous challenges and ultimately enhancing agricultural production and productivity. 1.4 Participatory Ecological Land Use Management (PELUM) Uganda and Agri Pro Focus (APF) policy group The issues raised above have been on the agenda of key stakeholders in the sector including Government of Uganda, the private sector, development partners and Civil Society Organizations (CSO). Among them are Participatory Ecological Land Use Management (PELUM) Uganda and Agri Pro Focus (APF) which are institutions whose key activities include; capacity building; communication and networking; research and advocacy among others. This report is the outcome of the decision of the two CSOs to commission a study to look at the issue of the national policy framework related to farmer entrepreneurship. 1.5 Study Objectives PELUM and APF recognize that while there are many challenges that impede growth of the agriculture sector, the issue of addressing Farmer entrepreneurship development has become increasingly critical. Consequently, the two CSOs commissioned a study to review and analyse policies related to farmers entrepreneurship in Uganda in order to determine the extent of GoU support to this critical issue. The specific objectives of the study were to:- i. Inform PELUM and APF advocacy agenda on farmer entrepreneurship; ii. Enhance member organizations knowledge and understanding of farmer entrepreneurship policy related issues; iii. Identify gaps and propose policy recommendations for enhancement of farmer entrepreneurship development; and iv. Assess the relevance of Farmer entrepreneurship to the attainment of increased production and productivity in Uganda. This report presents the findings of the study. 1.6 Structure of the Report The report is presented in five chapters, Chapter one presents the context of the agriculture sector importance, performance and associated challenges and opportunities. It also discusses the rationale and objectives behind the study as well as naming the institutions that commissioned the assignment. Chapter two presents the methodology and the general terms and concepts used in execution of the assignment. Chapter three presents the findings in sections that include both a general overview of the policy and legal framework as well as more specific analysis of the four policies that PELUM and APF decided to consider for future action. Chapter four presents the conclusions of the study while Chapter five presents the recommendations that will feed into a policy brief. 2

13 CHAPTER TWO 2.0 Methodology A Review And Analysis Of Policies On Farmers Entrepreneurship Development 2.1 Introduction The methodology utilized in execution of the assignment involved an extensive desk review of policy and legal frameworks, the production of an inventory of policies that were presented at a multi stakeholder consultation workshop in which four frameworks were prioritized. The methodology also included discussions with key GoU officials and CSO representatives as well as online research for cross tabulation. Key frameworks that were reviewed were presented in the following categories: 1. Policies; 2. Laws; 3. Treaties, Agreements or Protocols; 4. Strategies and Plans. It is important to point out that various documents use the word policy interchangeably to refer to laws as well as strategies and plans. In this report, the presentation has been structured according to the categories to facilitate a more nuanced understanding of the various frameworks. Furthermore, the term framework is used to refer to all the policies, legislation, strategies and plans. A brief description or definition of what each of the categories refers to is presented below to ensure that there is common understanding of the terms used in the document. 2.2 Key Definitions and General Terms Policies Policies are essentially expressions or declarations of intent and the documents that embody them consist largely of the rational or justification for their formulation, principles, goals, objectives and policy actions or strategies all designed to addressing specific concerns or issues or achieving perceived needs or interests. Policy documents also outline implementation, institutional, financial as well as monitoring and evaluation modalities. For purposes of this study, policies identified for scrutiny with regard to Farmer entrepreneurship were mainly at national or sector or in some cases sub sector levels Legislation Legislation referred in this report to legal instruments formulated for the purposes of guiding or controlling society action and in this report covered national laws, acts and bills, although they also encompass statutes, ordinances, bye laws, regulations or statutory instruments Treaties, Agreements or Protocols Related to legislation are what has been included in this report to refer to regional, international, bilateral and multilateral agreements including conventions and declarations Strategies and Plans Strategies and plans, also referred to as policies, are essentially documents that outline more explicit courses of action that are usually grounded or derived from international, regional or national policy or legal frameworks. Most are time bound covering three, five or ten year periods and essentially act as guides to implementation. 2.3 The Multi Stakeholder Workshop In the multi stakeholder prioritization workshop, a presentation was made of an inventory of frameworks along the categories described above. This included a brief review and analysis of each framework on the basis of a common understanding of Farmer entrepreneurship discussed at the beginning of 3

14 workshop. During discussions, a number of recommendations were made to facilitate execution of the subsequent task. They included:- 1. Integration of analysis of Cross Cutting Issues (CCI) including gender and climate change in the in depth study of the prioritized policies; 2. Consideration of agricultural mechanization and marketing issues in the analysis; 3. A look at institutional issues related to implementation; 4. Consideration of the APF thematic areas in the analysis. 2.4 Data Collection and Analysis Data collection methods essentially consisted of a compilation of various policies from various GoU Ministries, Agencies and Departments through physical visits as well as on line search of various websites. For purposes of reviewing and analysing the policies and laws, criteria were identified along issues of strengths, gaps, weaknesses and conflict. The criteria were utilized as guide to facilitate the analysis of the policies, laws, strategies as well as agreements. The criteria for selection was determined using the following criteria:- 1. If the policy, law, plan or strategy highlights farmer entrepreneurship; 2. If the policy, law, plan or strategy elaborates farmer entrepreneurship; 3. If the policy includes any of the above in its goals, objectives, principles or strategies; 4. If the document highlights harmonization, coordination or other frameworks that look at supportive institutional or implementation integration; 5. If the document elaborates activities beyond establishment of a supportive framework; and 6. If policy has a supportive legal instrument as back up for implementation. Gaps and weaknesses of the frameworks were determined from consideration of:- 1. Absence in the policy of any objectives or strategies that discusses farmer entrepreneurship development. 2. Absence in the policy of any statement that elaborates on farmer entrepreneurship. 3. Absence in the policy for establishment of any strategy or plan that discusses farmer entrepreneurship development. 4. Absence of supportive mechanisms for policy implementation with regard to farmer entrepreneurship development. 5. Lack of provisions for regular policy reviews. Conflicts were determined from:- 1. Alignment or coherence with overall national or sectoral policy frameworks; 2. Policy statements which contravene the protocols, national laws (constitution) and or local interests and needs; 3. If policy objectives or strategies differ from those that espouse farmer entrepreneurship development; and 4. If policy statements, principles and strategies overlap with those of other policies. 4

15 CHAPTER THREE 3.0 FINDINGS 3.1 Introduction A Review And Analysis Of Policies On Farmers Entrepreneurship Development The findings are presented in seven sections; the first section deals with the structure of presentation of the findings while section two presents a brief discussion of farmers entrepreneurship. The third section presents an in depth analysis of the four policies that were prioritized by the multi stakeholders while section four presents other related policies and agreements that were not prioritized in the workshop. Section five deals with legal frameworks and their relation with regard to farmer entrepreneurship development while section six briefly analyses other strategies and plans that are also related to or are supportive of farmer entrepreneurship development. Section seven presents a brief review of strategies that have been overtaken by changes in the overall national planning frameworks but which are still referred to in current policy documentation. 3.2 Farmer Entrepreneurship Why Entrepreneurship- The Context Due to the changing socio, economic, political, environmental and cultural dimensions in Uganda and the world over, farmers and nations options for survival and for sustainably ensuring success in changing their respective economic environments has become increasingly critical. It is also worth noting that the emergence of the free market economies globally has resulted in the development of a new spirit of enterprise and the increased individual need for responsibility for running their own businesses. In the Ugandan context, the farm production paradigms have emphasized options that include intensifying conventional production by volume increase and thereby endangering efficiency and effectiveness as well as by selective and well managed specialization and diversification. These options may include engagement in different agricultural operations such as food processing, direct marketing or organic production among others. Other alternatives include identifying new ways of cost reduction for example through cooperative arrangements that would cover bulking, joint marketing and use of the warehouse receipt mechanisms. In addition, others include engaging in business activities or involvement in the provision of (agriculture support) services such as the handling of agricultural inputs including certified seed, fish fry or breeding improved animals. In the European Union, research commissioned on these alternatives concluded that farmers who do not diversify lack entrepreneurial skills and that growth and expansion is a necessary and very important condition for farmers entrepreneurship development. The diversity of the various strategies from 1 to 7 is captured in Figure 1 below. Figure 1: Strategies for Development of the Farm Enlargement of Capacity by Enlargement of Capacity Expansion of Land Use Through by Expansion of Animal Crop Production Production 1 2 Doing Nothing (Abandoning farming) Strategies for Development of Farming Operations Different use of Capacity by Engagement in Services and Vertical Integration 3 Enlargement of Capacity by Services and Vertical Integration 4 Expansion of the non Agricultural Employment Operations 7 Source: Adapted from Lehmann 2003 External Business 6 Cooperation with other Farmers Collaboration, Collective Investment or Fusion 5 5

16 6 A Review And Analysis Of Policies On Farmers Entrepreneurship Development Lehman s conclusion derived from the Figure 1 is that the diversity of the options (necessarily) implies the need for entrepreneurial skills Ugandan and Global Perceptions of Farmer Entrepreneurship and Entrepreneurial Skills The term farmer entrepreneurship is not commonly used in the Ugandan context. The more common phrase or indirect related reference is treating farming as a business implying that farmers need to adopt a business-like approach to farming activities and not just consider it as merely a source of food for sustenance. The general perceptions in the local context indicate that farming as a business essentially refers to changing the mind set of farmers from subsistence to a more commercial farming operations orientation. However, the commercial orientation has got a business connotation and this may not always be in consonance with small scale farming operations. This situation is not accidental, Uganda has been pursuing a free market economy since 1997 and the importance of Small and Medium Enterprises (SME) for the Ugandan economy are recognised as being critical for economic growth. Consequently, the encouragement of entrepreneurial activity generally as a driver of economic growth has received significant attention over the last two decades. In this vein, it is generally expected that farming operations should adopt a similar model if they are to transition from subsistence to commercial agriculture hence the emphasis on a business model. In Europe, entrepreneurship in agriculture is a key issue with policy makers, researchers, farmer organizations and advisory service providers who have devoted significant resources towards farmer entrepreneurship development. According to research conducted by the European Union (EU), due to the changing business and other environments, farmers need to adjust accordingly to ensure that they acquire professional, management, strategic, opportunity as well as co-operation or networking skills with the last three being categorized as entrepreneurial skills. Furthermore, in the European Union, the terms Farmer entrepreneurship and skills are used in the following context:- 1. Entrepreneurship is connected with finding ways and means to create and develop a profitable farm business; 2. On the other hand, skills are considered to be those competencies required to accomplish tasks and activities related to the farm business. These can be developed by learning and experience. In the view of the EU, it is believed that development of entrepreneurial skills could be stimulated by changing the social and business environment and by directly influencing the farmers as well as their personalities and capacities Definitions of Farmer Entrepreneurship Research on the global scene has endeavoured to make a connection between farmers and the concept of entrepreneurship. In this regard, a number of definitions, some of which will be quoted hereafter, have evolved over the last two decades. McElwee (2004) defines farmers as those individuals occupied or employed on a part or full time basis in a range of activities which are primarily dependent on the farm and agriculture including the practice of cultivating the soil, growing crops and raising livestock or fish as their source of income or livelihood. Dollinger (2003) defines entrepreneurship as the creation of innovative economic organization for the purpose of growth or gain under conditions of risk and uncertainty. The definition however assumes that all farmers are engaged in farming for financial gain or growth which is not always the case. Gray (2002) on the other hand defines an entrepreneur as an individual who manages a business with the intention of expanding the business and with the leadership and managerial skills necessary for achieving those goals. According to Duckowska-Malysa (1993), Farmer entrepreneurship equates to all those activities which help farmers adjust to a free market economy. Filej (2000) defined entrepreneurship development as change of the quality of management in the process of farming while Zmija (2001) defined the phrase

17 as the progressive modernization of agriculture connected with multifunctional rural development. For purposes of this paper, farmers entrepreneurship will be understood to refer to that status of farmers engaged in the organization and management of any farming enterprise while applying innovative skills to achieve sustainable expansion of farming operations and (periodically) shouldering a degree of state of uncertainty by undertaking calculated economic risk to maximize profits. The key words to note that will be considered to be the tenets to farmers entrepreneurship development and which are key features of a farmer entrepreneur will be:- i. Risk taking; ii. Innovativeness; iii. Desire for growth and expansion Changing Perspectives on Farmers Entrepreneurship What emerges on close perusal of these and other definitions is that a distinction is made between small business owners and entrepreneurs. Apparently, running a small business and being an entrepreneur is not necessarily the same thing. Corman et al (1996) argue that operating an organization requires different skills and abilities than those required for being an entrepreneur. They assert that business operations require managerial skills while being an entrepreneur in their view requires innovative and other skills. Corman et al also asserts that over the decades, the concept of entrepreneurship is increasingly being viewed within the concept of adopting community, ethical and social responsibilities as the entrepreneurs strive to strike a balance between People, Planet and Profit. 3.3 Prioritized Policies, Plans and Agreements During the multi stakeholder workshop, four frameworks from a list of twenty five were chosen as priorities for further scrutiny and analysis. The four are listed as follows:- 1. The Draft National Agriculture Policy (NAP) 2010; 2. The Uganda National Cooperative Development Policy (UNCDP) 2008; 3. The Development Strategy and Investment Plan (DSIP) 2010; 4. The East African Community Common Market Protocol (EACCMP) The four frameworks are described and analysed in detail using the parameters used in determining their strengths, weaknesses, gaps and conflicts as earlier described in chapter two The Draft National Agriculture Policy (NAP) 2010 The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) is currently developing a new and explicit National Agricultural Policy (NAP) for Uganda. The process is informed by the country experiences and lessons learned from implementation of the Poverty Eradication Action Plan (PEAP) implemented between 1998 and 2008, the Plan for Modernization of Agriculture (PMA) 2000 and the Local Government (LG) Act 1997 (as amended). The NAP (currently in draft form) has identified six key principles and five objectives that spell out GoU s position on and guidance framework for the development and management of the agriculture sector. The six principles are described below as follows:- 1. GoU will continue to pursue a private sector led and market-oriented economy. In doing this the government will work on constraints that hinder the private sector to additionally invest in agriculture; 2. Agricultural development will be pursued according to the 2004 zoning strategy by MAAIF that divided the country into ten agricultural production zones; 3. Agricultural development services will be provided to all farmer categories as individuals or in groups while ensuring gender equity. Focusing on some strategic commodities in different zones will be done in addition to providing general agricultural services to all involved in agriculture as is currently done through government agencies and local governments; 4. Government will continue to provide agricultural services through the decentralized system of government and will work to strengthen it; 7

18 5. Government interventions will pursue growth and equity. In so doing, agricultural interventions will be balanced across the different regions, agricultural zones and across genders. Where necessary, government shall pay special attention to parts of the country with specific needs and marginalized groups; and 6. Government will ensure that key agricultural resources including soils and water for agricultural production are sustainably used and managed to support current and future generations. The NAP objective is to promote food and nutrition security and household incomes through coordinated interventions that focus on enhancing productivity and value addition, providing employment opportunities, and promoting domestic and international trade. The policy objective will be pursued via five inter related objectives as follows:- Objective 1: Objective 2: Objective 3: Objective 4: Objective 5: Ensure household and national food and nutrition security for all Ugandans; Increase incomes of farming households involved in crops, livestock, fisheries and all other agricultural related activities; Support stakeholder-led identification and development of value chains that are strategic and profitable and offer scope for complementing general, broad-based development efforts; Promote domestic, regional and international trade in agricultural products; Ensure sustainable use and management of agricultural resources. While all the five objectives stated above are pertinent to farmer entrepreneurship and market development, three objectives namely 2, 3 and 4 stand out with regard to provision of support to farmer entrepreneurship. 8 Strengths of NAP In Relation to Farmer Entrepreneurship Development The NAP is aptly grounded in the national planning framework, the National Development Plan (NDP) 2010/ /15.The spirit of the draft policy emphasises the Farmer entrepreneurship tenets of growth, innovativeness as well as expansion. The policy also stresses the need to transform agriculture from subsistence to commercial agriculture and by implication the need for change of farmers mind set and orientation to enable achievement of this outcome. The overall policy objective also implicitly caters for the tenets of farmer entrepreneurship through the reference to enhancement of household incomes through coordinated interventions that focus on enhancing sustainable agricultural productivity and value addition. Specifically, objective No. 1, that will focus on ensuring household and national food and nutrition security for all Ugandans, makes direct reference to strengthening the capacity of farmers and farmer groups as well as providing support to facilitate scaling up of farm level production and productivity. Objective No. 2, focusing on increasing incomes of farming households involved in crops, livestock, fisheries and all other agricultural related activities, mentions one of its strategies as the generation of appropriate, safe and cost-effective agricultural technologies and research services. Another strategy under this objective is increasing availability and accessibility to productivity enhancing technologies, practices, advisory and technical services by all categories of farmers. These are expected to compliment the farmer entrepreneurship tenet of innovativeness that requires them to search, develop and try new products, markets and methods among others. Objective No.3 focuses on the provision of support to stakeholder-led identification and development of value chains that are strategic and profitable and offer scope for complementing general, broadbased development efforts. The rationale for the objective is grounded in the need for commodity specialization and agro-zoning that GoU believes will strengthen agri-business, enhance profitability and market access and lead to creation of on and off-farm employment. It is also etched in the need for adding value to agricultural products that is considered vital for the development of agro-industries. In its body, under the implementation framework detailing the roles and responsibilities for MAAIF, the policy states that the Ministry will promote and support commercialization of the agricultural sector through value chain development as well as guide strategic enterprise selection at farm level to ensure competitiveness and profitability of the chosen commodities. This is in addition to other MAAIF functions that also support farmer entrepreneurship. By implication, execution of MAAIF mandate will necessarily

19 require farmers change of attitude and behaviour and will also involve a degree of risk taking which is a key tenet of farmer entrepreneurship. The implementation framework further elaborates the roles and responsibilities of other Ministries, Departments, Agencies as well as Development Partners, Civil Society and Local Governments. It also goes further to recognize the need for inter and intra sectoral coordination modalities and provides for the establishment of institutions to handle implementation and other issues at both levels. The policy also recognizes that the growth and development of the agriculture sector is dependent on the complementary role played by other sectors. It lists these sectors as energy, transport, agricultural finance, agricultural training, natural resource use and management, among others. It explicitly states that without the actions of these and other supportive sectors, the agricultural sector is not likely to achieve its policy objectives. The policy states that to address this key issue, Government shall accordingly set up a planning and coordination mechanism that will link MAAIF and other relevant support sectors and services. Under the sector responsible for agriculture training and skills development the policy observes that in 2006, Government developed a National Agricultural Education Policy and Strategy in 2006 that aimed at promoting farming as a business and professionalism in agriculture. A key strength of the NAP related to its implementation is the development of a fairly comprehensive Development Strategy and Investment Plan (DSIP) 2010/11 to 2014/15 which is intended to assist government and other stakeholders to define public interventions to meet the key objectives in the agricultural sector. The DSIP is a combination of policies and programmes around which funds can be mobilized and therefore forms the basis for seeking resources to implement this policy. In summary, the NAP framework with regard to farmer entrepreneurship has to be viewed within the context of whether it provides a supportive environment that will facilitate the transition of farms to firm (company) like entities and whether it also provides for the strategies focusing on change in farmer entrepreneurial behaviour. Suffice it to say that the NAP does provide an explicit enabling environment for the transition of farms to more commercial oriented entities and through very direct and explicit declarations of intent, also makes statements that indicate that actions and strategies to facilitate behavioural change through training and skills development will be developed and implemented. It is also important to note that the NAP comes at a very opportune time in the history of the sector, principally because it is intended to act as a holistic framework that will guide public and private investments in the sector and therefore address the issue of policy incoherence or confusion that has plagued the sector over the last decade. Gaps and Weaknesses in the NAP in Relation to Farmer Entrepreneurship The NAP does not explicitly refer to farmer entrepreneurship principally because the draft policy is a broad statement of intent and has to be viewed within the context of the various GoU frameworks that have guided agriculture sector development over the last decade. These include the multi sectoral framework, namely the PMA, the Rural Development Strategy (RDS) 2005 and the Prosperity for All (PFA) 2007 initiatives that led to policy incoherence and confusion in the sector. The various policy initiatives have also been characterized by different responsibility centres that have further compounded the confusion. It is important to observe that Farmer entrepreneurship development is both an aspiration and a process and more importantly applies to the three sub sectors in the agriculture sector namely crops, livestock and fisheries which in turn bring together further levels of sub sector focus. Key Recommendations to Improve the NAP in Support of Farmers Entrepreneurship Development The NAP has to be lauded and supported in its attempts to provide a holistic national agriculture policy. However, considering the importance that has been inferred from the discussion in this document, the NAP would benefit greatly if there was specific reference to farmers entrepreneurship development. 1) It is therefore recommended that before the finalization of the NAP, CSOs initiate dialogue with GoU and stakeholders to examine the merits of making specific reference to development of farmers entrepreneurship as well as its key tenets and with elaboration of the rationale for its inclusion with regard to the agriculture sector. 9

20 The evaluation of the PEAP national planning framework in 2008 concluded that the emergence of various policies and resultant confusion and inconsistence was related to ignorance of political programs (manifestos) by the framers and developers of national policies. The study recommended that formulation of future policies and interventions needed should always take this into consideration and ensure that there was consensus achieved between political leaders, technocrats and stakeholders on the basis of objective and robust discussions and thrashing of issues. 2) It is recommended that future CSO engagement takes political issues into consideration while exercising its right and privilege to present opinions or positions it considers appropriate The National Cooperative Development Policy (NCDP) 2008 The co-operative movement in Uganda was started in 1913 as a means of involving Ugandans in domestic and export marketing of agricultural commodities. The movement in Uganda is composed of 9201 primary societies, 41 secondary societies, 4 tertiary societies and 1 apex institution namely the Uganda Cooperative Alliance Ltd. These Cooperatives are generally categorized as follows: agricultural marketing (55%); savings and credit (23%), multipurpose cooperatives (6%) and others (16%). The main strength of the co-operative movement lies in the fact that it is a grassroots organization, multi-sectoral and pervades every aspect of society. In Uganda, a key challenge to farmers engaged in small scale agricultural production is the lack of organization at two levels namely:- a) Farm level to effectively exploit their land and labour resources; and b) Organizational level where they lack organization for collective marketing that would give them the needed bargaining power. In this regard, cooperatives have demonstrated capacity to facilitate primary producers involvement in domestic and international trade and albeit impediments have provided a relatively permanent institutional framework through which problems of basic human needs can be addressed. There are several challenges that continue to impede cooperative movement development one of which is the narrow scope of Co-operative Enterprises. In this regard, co-operatives in Uganda are predominantly engaged in the production, processing and marketing of traditional cash crops. There is limited involvement in other areas for example housing, transport, insurance, finance, health, environment and tourism. Instances such as crop failure arising out of natural calamities leave the co-operators with no alternative options leading to inadequate food security and limited wealth creation. The National Co-operative Development Policy (NCDP) vision is a strong, vibrant and prosperous cooperative movement that effectively responds to the needs of the members while its policy objectives are to:- 1. Build capacity of the co-operative societies to efficiently and effectively respond to member needs; 2. Diversify the range of co-operative enterprises to include industrial and value addition activities among others; 3. Promote and enhance good governance in the co-operative movement; 4. Build capacity of cooperatives to compete in the domestic, regional and international markets; 5. Improve and develop capitalization and financing tools appropriate for the cooperative movement. The envisaged policy actions are:- a) Rebuilding the cooperative movement; GoU is committed to rebuilding and revitalizing cooperatives as key business units in the economy; b) Legal reforms; GoU will effect the necessary legal reforms to facilitate the cooperative movement to operate and develop; c) Regulation: GoU shall promote good governance, compliance to laws, regulations and standards; d) Quality assurance and competitiveness: GoU shall undertake quality assurance measures that conform to international standards; e) Diversification of Cooperative enterprises: GoU shall promote diversification of cooperative enterprises 10

21 beyond commodity marketing; f) Human resource development: GoU is committed to supporting cooperative education, training as well as developing information systems that service the cooperatives regular information needs; g) Development of Savings and Credit Cooperatives (SACCOs): GoU shall support development of SACCOS into strong financial institutions; h) Information management: GoU shall establish an Information, Communication and Technology (ICT) management framework for both the Ministry and the Movement in order to ensure sound and consistent ICT management practices across the sector; i) GoU will promote mainstreaming of Cross Cutting Issues (CCI) in implementation of the policy. Strengths of NCDP in Relation to Farmer Entrepreneurship Development A key strength is the call for a greater degree of an entrepreneurial orientation in cooperative operations which essentially hinges on the need for a policy environment that is conducive as well as facilitating skills acquisition. Through its policy actions, the NCDP provides for the establishment of an environment that promotes and supports rebuilding the cooperative movement through the mobilization of people to form new societies that suit their common interest and the revitalization of cooperatives including service organizations such as the cooperative banks, insurance and transport firms. From a Farmer entrepreneurship perspective, entrepreneurial skills include professional, management, opportunity, strategic and networking or cooperation capabilities. Under the stated policy actions to facilitate acquisition of skills necessary for agricultural sector growth, the quality assurance and competitiveness action explicitly emphasizes working with both private and public training institutions to provide business and entrepreneurial skills that promote private sector development and competitiveness among its member organizations. Specifically, the NCDP supports the acquisition and enhancement of skills to cooperate with other farmers and firms; networking, team working as well as leadership skills which are all critical to Farmer entrepreneurship development. The NCDP mission, vision and guiding principles emphasize the revitalization of the cooperative sector and especially the entities or organizations that are critical for the effective revival of the movement. The NCDP implementation framework places lead responsibility for implementation of the policy with the then Ministry of Trade, Tourism and Industry (MTTI) and District Commercial Cooperative Officers located in LGs. It also spells out the roles and responsibilities of Apex bodies that are responsible for capacity building, advocacy, provision of advisory services and resource mobilization. In general, the NCDP implicitly supports farmers entrepreneurship development through the focus on establishment of an enabling environment as well as provision of explicit declarations on ensuring or promoting Farmer entrepreneurship skills development. Gaps and Weaknesses in the NCDP in Relation to Farmer Entrepreneurship A key gap in the NCDP is the lack of definition of its relationship with other sector policies, programs and interventions. While the situation analysis presents brief exposes of the challenges that have impeded growth of the sector that span other sectors like agriculture, other than a brief statement of intent to collaborate with other relevant GoU Ministries, it is silent on the manner in which it will liaise or coordinate with other sector MDAs to ensure complementarity and harmonization in implementation as well as information sharing. This gap has been identified across most sectors as a key challenge to policy implementation in government. The NCDP lacks reference to financing modalities that capture among others, sources of resources as well as the manner in which policy implementation will be monitored and evaluated. The presumption is that the lead implementing institution will have the required mechanisms in place to execute necessary operations for financing as well as monitoring and evaluation, which in light of past experience may prove a challenge. Furthermore, the NCDP stresses cooperative action principally around historical operations related to bulk marketing, collective bargaining, insurance and banking and appears to ignore actions that will 11

22 12 A Review And Analysis Of Policies On Farmers Entrepreneurship Development focus on more innovative operations in the sector. In addition, the policy lacks an explicit statement detailing the vehicle for implementation of the policy in form of a strategy and plan. Last but not least, is the fact that the NCDP was developed in 2008 and has a result may have been overtaken by current GoU priorities detailed in the NDP over the next four years and which should therefore inform its implementation. Conflicts in the NCDP in Relation to Farmer Entrepreneurship A particular area of concern is the reference to the establishment of an Agriculture Marketing Information System to provide timely and relevant information to farmers and other key players in the sector. Perusal of other policies such as the National Trade Policy (NTB) and the NAP also makes reference to development of similar systems which suggests the likelihood of duplication of effort. Key Recommendations to Improve the NCDP in Support of Farmers Entrepreneurship Development 1) The NCDP was developed in 2008 and has now been overtaken by events and therefore needs to be reviewed so as to align it with existing and changed national policy and planning frameworks such as the National Development Plan (NDP) as well as the NAP, the DSIP and the LGSIP which influence the activities of a significant proportion of its members. It is recommended that CSOs need to plan for engagement during the process of NCDP review and to the extent possible, focusing particularly on further consolidating the strengths and opportunities that the cooperative movement has hitherto built on and exploited respectively. The engagement should also include contribution to comprehensive harmonization with other relevant policy frameworks to ensure avoidance of duplication or overlap. CSOs should also contribute to identification of weaknesses and especially those related to institutional and implementation modalities, collaboration as well as financing mechanisms. 2) Furthermore, with regard to farmers entrepreneurship development, there is need to ensure that the future policy provides for expansion of the scope of cooperative movements activities outside the traditional areas and to ensure that provision is made for integrating a strong entrepreneurial culture among its members of which a significant proportion are farmers. By implication, the NCDP should be a strong mechanism for Farmers Entrepreneurship Development promotion and specific reference to the concept should be a goal of the engagement process Development Strategy and Investment Plan (DSIP) 2010/ /15 The Development Strategy and Investment Plan (DSIP) presents the medium-term plan of Ministry of Agriculture Animal Industry and Fisheries (MAAIF) for the development of its policy objectives in line with the national development objectives. The Ministry through the DSIP presents a statement on how the national goals and priorities contained in the NDP are translated into public sector activities in the agricultural sector. The DSIP also seeks to clarify the objectives and outputs for the sector and to highlight the priority areas which will be carried out in the years (2010/11 to 2014/15). The DSIP has both sector development and immediate objectives described as follows:- i) Sector Development Objectives a) Rural incomes and livelihoods increased; b) Household food and nutrition security improved. (ii) Immediate objectives a) Factor productivity (land, labour, capital) in crops, livestock, and fisheries sustainably raised; b) Markets for primary and secondary agricultural products within Uganda, the region and beyond developed and sustained; c) Favourable legal, policy and institutional frameworks developed to help the private sector to expand and become more profitable along the entire value chain; d) MAAIF and Agencies functioning as a modern, client-oriented organisation within an innovative, accountable, support environment.

23 The immediate objectives also reflected in the four priority programs representing key areas of opportunity for development of the Agricultural Sector. They are:- a) Enhancing production and productivity with eight sub component areas that are all pertinent to farmer entrepreneurship; b) Market access and value addition with five sub components; c) Improving the enabling environment with six sub components; and d) Institutional strengthening in the sector. Strengths of the DSIP in Relation to Farmer Entrepreneurship Development While all the four objectives stated above are pertinent to farmers entrepreneurship and market development, three stand out prominently; they are objectives a), b) and c). In all cases, the primary role of the public sector will be to remove constraints that prevent the private sector from investing in the value chain. The first three programs are analysed hereafter with details on those sub components that are particularly supportive of farmers entrepreneurship development. a) Programme 1: Enhancing Production and Productivity. To realise the sector vision and objectives, factor productivity (land, labour, and capital) will have to be raised substantially. Eight Sub-Programmes will be pursued with the following objectives:- (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Improved Agricultural Research and Technology development; Better Delivery of Advisory Services and Improved Technology; Improved Disease, Pest and Vector Control; Enhanced Productivity of Land through Sustainable Management of Soil and Water Resources; Increased Use of Water for Agricultural Production; Promotion of labour saving technologies and mechanisation; Improved agricultural livelihoods in Northern Uganda; and Promotion of selected strategic enterprises. The first two objectives currently being implemented under the Agriculture Technology and Agribusiness Services are analysed in more detail on the basis of their potential to facilitate farmers entrepreneurship development. Key among the DSIP investment interventions currently being implemented under program 1 is the Agriculture Technology and Agribusiness Advisory Services (ATAAS) initiative. The ATAAS is designed to support the full national programs of both agricultural research and advisory services through the National Agriculture Research organization (NARO) and National Agricultural Advisory Services (NAADS) Phase II. The ATAAS objective is to increase agricultural productivity and commercialization of participating rural households by transforming and improving the performance of agricultural technology development and advisory service systems in Uganda. The ATAAS is designed to support the national programs of both agricultural research or technology generation and effective delivery of advisory services through the National Agriculture Research organization (NARO) and NAADS Phase II program. There are four components relevant to farmers entrepreneurship developments that are discussed hereafter. Developing Agricultural Technologies and Strengthening the National Agricultural Research System Under this component, the ATAAS initiative has particular importance with regard to farmers entrepreneurship principally because it presents opportunities for entrepreneurial skills enhancement through promotion of innovation or farmers trying out new products, markets or methods. Innovativeness has been highlighted previously as a key tenet of farmers entrepreneurship development and also refers to farmers searching or developing new products that are expected to lead to increased production and productivity. 13

24 14 A Review And Analysis Of Policies On Farmers Entrepreneurship Development While entrepreneurial skills development emphasizes farmers innovativeness, the role of the public sector cannot be ignored especially with regard to development of new technologies that will enhance professional and managerial skills related to farming. Key to this is the aspect of risk taking where farmers are expected to take calculated economic risks and ultimately maximize profits by adopting new technologies and practices that enhance production and productivity. Enhancing Partnerships between Agricultural Research, Advisory Services, and other Stakeholders The second component focuses on enhancing the relationship between National Agriculture Research Organization (NARO) and National Agriculture Advisory Services (NAADS) with a view to ensuring that mechanisms for farmers needs identification are consultative and lead to relevant outcomes. A key objective under this component is to promote better institutional collaboration between the two institutions with a view to establishment of a seamless system of technology generation and dissemination. Furthermore, increased institutional collaboration that leads to enhanced linkages between technology development and dissemination has significant potential to facilitate Farmer entrepreneurship development. Better Delivery of Advisory Services and Improved Technology This component focuses on enhanced delivery of advisory services and improved technologies. It is consists of the following sub components:- i. Farmer Institutional Development (FID): this focuses on the core principles of National Agriculture Advisory Services (NAADS) which seeks to empower farmers and strengthen their organizations; ii. Technology Promotion and Farmer Access to Information; supports the delivery of agricultural advisory services which is the main mandate of NAADS; iii. Technology Uptake Grants; provides two types of grants to farmer groups to support uptake of superior technologies and practices and promote wider adoption. These are:- a. Food Security Grants to demonstrate and multiply food security enterprises and; b. Market-Oriented Enterprise Promotion Grants to demonstrate and promote the adoption of commercially promising or market-oriented enterprises. The Uptake Grants intervention is particularly supportive of farmers entrepreneurship principally because it focuses on farmers, encourages change in farming operation mindset and attempts to address or mitigate the issue of risk taking by provision of grants to facilitate initial improved technology uptake. Supporting Agribusiness Services and Market Linkages The component is designed to promote integration of smallholders (farmers) in value chains by supporting collaboration between agribusiness, farmers, Agricultural Advisory Service Providers (AASP) and researchers so as to create viable, sustainable market and agribusiness linkages. The intervention intends to pull farmers out of subsistence agriculture through their increased participation in input and output markets which is hoped will ultimately lead to increased production and productivity. Furthermore, the intervention intends to ensure that selection of enterprises supported by NAADS will take value-chain considerations and market outlets into account. The component will strengthen the capacity of groups to improve the selection and management of enterprises through enhanced agroecological and regional analysis, acquisition and utilization of basic business skills through training, and increased access to information on market prospects and profitability. Under the same component, NAADS intends to support its objectives of farmer progression towards commercialization through the establishment of a Commercialization Challenge Fund (CCF). The fund consists of matching grants provided on a competitive basis, in response to proposals provided through two windows and will aim at integrating smallholder farmers into value chains by forging partnerships and promoting competitiveness of agribusinesses and farmers linkages to markets. This specific component of the CCF will be used to support innovations and partnerships with emerging and existing nucleus farmers and agribusinesses to enhance market linkages for NAADS groups and promote social inclusion. Established farmers, agro-processors, and other agribusinesses will be eligible to apply for support in the form of a matching grant to stimulate production or processing by NAADS groups.

25 The second window of the CCF will be established at the local level for potentially successful commercialization activities, value addition or agro processing opportunities. The fund will also seek to encourage progression of farmers from subsistence and lower initial level of market orientation to commercialization of their farming activities. Using the value chain approach, the fund will provide emerging or existing participants at the lower end of the value chain support modality to address a suite of activities to strengthen specific links in the value chain, thereby avoiding the narrow focus on single or uncoordinated efforts. The fund will be open to competitive business proposals from farmer groups (individually or jointly by more than one group). The groups will identify the commercial enterprise they would prefer to establish, on the basis of market and business principles and also the most appropriate hosts for the selected or preferred enterprises. b) Programme 2: Improving Market Access and Value Addition. Under the DSIP program 2, five sub- programmes will be implemented to enhance market access and value addition with the following objectives:- (i) Improved capacity for regulation and enforcement especially in safety standards and quality assurance ; (ii) Improved access to high quality inputs, planting and stocking materials; (iii) Increased participation in value addition activities; (iv) Expanded network of rural market infrastructure; (v) Strengthened farmers organizations in management; (vi) Entrepreneurship and group dynamics especially for collective marketing. The specific objective of the sub-programme (vi) focusing on promotion of collective marketing is to build capacity of existing farmers organizations in management, entrepreneurship and group dynamics skills so they can engage in higher-level value chain activities including collective marketing. The investment areas pertinent to farmers entrepreneurship activities that are to be implemented are outlined as follows:- (i) (ii) (iii) (iv) Preparing guidelines for farmer institutional capacity development; Expanding capacity for situation analysis and for guiding and supporting farmers and Farmers Organization (FO)) planning processes; Training farmer groups and fora in visioning, enterprise selection, market analysis and needs identification; Higher-level farmer organizations (HLFO) strengthened to enhance farmer participation in market development activities. This will also include training in management and business skills and output marketing. Under the DSIP program 3 that focuses on improving the enabling environment for development of the agriculture sector, six sub programs are envisaged for implementation. The two that are specifically supportive to Farmer entrepreneurship development include the establishment of a clear, predictable and functional policy framework; as well as (MAAIF) undertaking planning and policy responsibilities to improve formulation (and review) of new policies, strategies, programmes and projects. These sub programs are especially important because they provide the opportunity for establishment of an enabling environment that can ensure the integration of the basis or key tenets of Farmer entrepreneurship and therefore provide excellent opportunity for future engagement. The provision for periodic policy formulation and review represents a key strength of the DSIP in relation to farmers entrepreneurship development. A key strength of the DSIP is the explicit declaration of or provision for a detailed implementation framework. Furthermore, the linkage to the NDP as well as the NAP national policy frameworks presents significant manifestation of the intention to enhance policy coherence and consistency. The provisions within the programs for the establishment of inter and intra coordination institutions, mechanisms as well as the identification of specific activities for implementation is also significant departure from past operational procedures that spelt out intention and left implementation to the existence of goodwill in the implementing institutions. The DSIP also provides for the strengthening of existing monitoring and evaluation modalities with a view to making them more effective and ensure they provide routine and periodic information for planning and implementation purposes. Another key strength of the DSIP is its targeting of all categories of farmers as well as consideration of Cross Cutting Issues (CCI) that include gender, the environment and HIV/AIDS. 15

26 16 A Review And Analysis Of Policies On Farmers Entrepreneurship Development Gaps and Weaknesses in the DSIP in Relation to Farmer Entrepreneurship The presumption underlying farmer entrepreneurship development in the DSIP is grounded in a concept of entrepreneurial identity that is business or firm oriented. As was discussed earlier, farmer entrepreneurs were identified as innovative individuals who manage farms with the intention of expanding farming activities and with the leadership and managerial capabilities for achieving their goals. The underlying logic is that whilst many small business owners or farmers for that matter perceived themselves as entrepreneurs, running a small business or farm and being an entrepreneur are not always the same thing. The reasoning is that the abilities or capacities to operate business or farm organizations require different skills and capabilities than those required for being an entrepreneur. It was argued earlier that long term operation of a business requires managerial skills while being an entrepreneur requires innovative and other additional skills. In essence therefore, the DSIP focus on entrepreneurial skills development appears to be focused at levels along the value chain that may not include farmers and may be mostly targeting business development service organizations. It appears that the focus on farmers appears to target transition from subsistence to a commercial or business orientation and not necessarily a farmer entrepreneurial orientation. Key Recommendations to Improve the DSIP in Support of Farmers Entrepreneurship Development 1) The DSIP commendably provides for periodic as well as annual agriculture sector review processes, there is therefore need for CSO engagement with GoU and stakeholders to ensure that focus on activities on enhancement of agriculture related entrepreneurial activities or interventions also includes farmers entrepreneurship development. 2) Although the ATAAS is part of the DSIP, CSOs also need to be closely engaged with the ATAAS intervention since it provides significant opportunities with regard to farmers entrepreneurship development East African Community Common Market Protocol (EACCMP) July 2010 The East African Community Common Market Protocol (EACCMP) refers to the five Partner States (Uganda, Kenya, Rwanda, Tanzania and Burundi) markets being integrated into a single market in which there is free movement of persons, labour, goods, services and capital; and the right of establishment and residence. The Common Market is a significant step towards the achievement of the next mileposts in the integration process namely; the Monetary Union and the EAC Political Federation. The (East African Community) EAC Partner States formed themselves into a Common Market in order to:- 1) Accelerate economic growth and development of the Partner States through the attainment of free movement of persons, labour, goods, services and capital; and the right of establishment and residence; 2) Strengthen, coordinate and regulate the economic and trade relations among the Partner States in order to promote accelerated, harmonious and balanced development within the Community; 3) Sustain the expansion and integration of economic activities within the Community, the benefit of which shall be equitably distributed among the Partner States; 4) Promote common understanding and cooperation among the nationals of the Partner States for their economic and social development; and 5) Enhance research and technological advancement to accelerate economic and social development. The East African Community Common Market Protocol (EACCMP) is guided by the fundamentals and operational principles enshrined in Article 6 and 7 of the East African Community (EAC) Treaty. In this protocol, partner states undertake to:- a) Observe the principles of non discrimination of nationals of partner states on the grounds of nationality; b) Accord treatment to nationals of partner states in a manner that is not less favourable to the treatment accorded to third parties;

27 c) Ensure transparency in matters concerning the other Partner States; and d) Share information on implementation of the Protocol. The overall objective of the Common Market is to widen and deepen cooperation among the partner states in the economic and social fields for the benefit of partner states. The specific objectives of the Common Market are to:- a) Accelerate economic growth and development of the partner states through the attainment the free movement of goods, persons and labour, the rights of establishment and residence and the free movement of services and capital; b) Strengthen, coordinate and regulate the economic and trade relations among partner states in order to promote accelerated, harmonious and balanced development within the community; c) Sustain the expansion and integration of economic activities within the Community, the benefit of which shall be equitably distributed among the partner states; d) Promote common understanding and cooperation among the nationals of the partner states for their economic and social development e) Enhance research and technological advancement to accelerate economic and social development. In order for the EAC states to realize the objectives stated in the article, they shall cooperate, integrate and harmonize their policies in areas provided for in the protocol and also in such areas as the council may deem necessary in order to achieve the objective of the common market. It is also stated that the Partner States shall also endeavour to undertake to sustainably develop and promote agriculture with regard to crops, livestock, fisheries, forestry and their products and ensure food security in the community through access to quality and sufficient food. The objectives of promoting agriculture and ensuring food security in the common market shall be to:- i. Increase agricultural production and productivity; ii. Achieve food and nutrition security; iii. Promote investments in agriculture and food security; iv. Develop effective agricultural markets and marketing systems in the Community; and v. Promote agro processing and value addition to agricultural products. The implementation of this Article shall be in accordance with the existing and any other relevant instruments that may be approved by council. The partner states however undertake to establish an Agriculture Development Fund (ADF) whose purposes are stated as follows:- a) Promote sustainable and competitive agricultural production; b) Finance agricultural capital investment and working capital; c) Finance agricultural mechanisation and inputs; d) Facilitate access to credit by all categories of farmers and agricultural entrepreneurs especially small scale farmers and agricultural entrepreneurs; e) Facilitate financing for value addition and processing capacity; and f) Cater for any other financing requirement in the agricultural sector. Strengths of the EACMP in Relation to Farmers Entrepreneurship Development The Partner States have committed and undertaken to harmonise their national laws as well as their respective policies and systems. The harmonisation of Partner States Commercial Laws is one of the first initiatives that have been undertaken, and the process of harmonizing these laws and policies is already going on, with the identification of those frameworks that need harmonization already completed. The protocol identifies the agriculture sector as one of its key areas and makes explicit reference to facilitating access to credit to small scale farmers and agricultural entrepreneurs. It provides for the creation of an Agriculture Development Fund as well as providing for institutional arrangements for implementation as may be deemed necessary by the council. It specifically refers to providing access to credit to small scale farmers and agriculture entrepreneurs. The EACMP makes provision for partner states to review national laws and harmonize policies and systems 17

28 for purposes of implementing the protocol as well as providing for council to approve measures to address any imbalances that may arise through implementation. Gaps and Weaknesses in Relation to Farmers Entrepreneurship Development The protocol makes an explicit distinction between small scale farmers and agriculture entrepreneurs suggesting that the two categories are different. In addition, the goals and principles do not make any direct reference to farmer entrepreneurship. In terms of EACCMP implementation progress, The Partner States have established a Non-Tariff Barrier Monitoring Mechanism; with the mechanism monitored through the National Monitoring Committee (NMC) housed at the Ministry of Tourism, Trade and Industry (MTTI now Ministry of Trade and Industry-MTI), with the private sector co-chairing the Committee. The Committee has also developed and disseminated a Non-Tariff Barrier (NTB) Monitoring Form, and provided NTB collection boxes at major border points. These forms are collected regularly and through the mechanism the Committee follows up with the concerned country to have the NTB removed. The Common Market is open to all persons, both in the formal and informal sector including farmers and farmer entrepreneurs. One has to only comply with legal requirements in the exercise of their freedoms and rights granted by the Common Market. Furthermore, Ugandans, have the right of residence in any of the other Partner States for purposes of taking up and pursuing economic activities as self-employed persons, setting up and managing economic undertakings, or taking up either formal or informal employment, subject to the national laws and administrative procedures governing the employment of workers of the host State, and subject to public policy, security and health considerations of the host State. Key Recommendations to Improve the EACMP in Support of Farmers Entrepreneurship Development The EACMP does not make explicit reference to farmers entrepreneurship development. However, it seeks to compliment partner states initiatives especially in the agriculture sector. In addition, it makes a distinction between small scale farmers and agricultural entrepreneurs suggesting that they cannot be both or that entrepreneurial skills are beyond the reach of small scale farmers. The distinction between farmers and agricultural entrepreneurs provides an entry point for dialogue; it is recommended therefore, that CSOs initiate engagement with the necessary EAC institutions responsible for overseeing implementation of the protocol to explore opportunities to facilitate transition of the farmers to agricultural entrepreneurs. The EACCMP has great potential to contribute to farmers entrepreneurship development through the establishment of an Agricultural Development Fund (ADF) and provides for various institutional and implementation modalities. Even though it is already a binding protocol it provides for periodic engagement and through council to approve measures to address any imbalances that may arise through implementation. This is a potential vehicle to facilitate the said engagement. It is recommended that engagement processes include possibilities for the ADF to focus on promotion of Farmers Entrepreneurship Development in the region and specifically Uganda. Initial dialogue can be done with the MTI and EAC Members of Parliament. 3.4 Other National Policies and Agreements The Comprehensive Africa Agriculture Development Programme (CAADP) and the Uganda Compact 2010 Uganda s concerns with agriculture sector performance are not isolated especially when compared to issues dominating the development agendas on the African continent. It is in line with this trend that Uganda committed itself to the New Partnership for Africa s Development (NEPAD)/African Union initiative namely the Comprehensive Africa Agriculture Development Programme (CAADP). CAADP aims at accelerating growth and eliminating poverty and hunger among African countries by enhancing development of the agriculture sector and assisting attainment of increased economic growth. 18

29 CAADP envisages an agriculturally-led development mechanism aiming at eliminating hunger, poverty and food insecurity and expansion of exports. The initiative presents a common framework, encompassing a set of key principles and targets defined and set by the Heads of State and Government, in order to: - a) Guide country strategies and investment programs; b) Allow regional peer learning and review; and c) Facilitate greater alignment and harmonization of development efforts. Some of the main principles and targets which define the CAADP framework include:- a) Agriculture-led growth as a main strategy to achieve the Millennium Development Goal of poverty reduction; b) Pursuit of a 6% average annual sector growth rate at the national level; c) Allocation of 10% of national budgets to the agricultural sector where agriculture is defined in accordance with the United Nations (UN) Classification of Functions of Government (COFOG) system as described in the Guidance Note developed by the African Union (AU)/New Partnership for Africa s Development (NEPAD) for use in Agriculture Public Expenditure Tracking System; and d) The implementation principle assigns the roles and responsibility of program execution to individual countries; that of coordination to designated Regional Economic Communities; and that of facilitation to the NEPAD Secretariat. CAADP is being spearheaded in COMESA member countries, by the secretariat together with agricultural programs being implemented or spearheaded by the same organisation. In Uganda, the Ministry of Agriculture, Animal Industry and Fisheries provides leadership for implementation of the process which is also being overseen by the Agriculture Sector Working Group (ASWG) that brings together various stakeholders while the Agricultural Planning Department specifically provides the Focal Point Office. A CAADP compact was signed in 2010 by stakeholders in the agriculture sector that included; GOU, Development Partners, Civil Society Organizations (CSO) and UNFEE among others. The compact spells out areas of common agreement especially the fact that the DSIP will be the main guiding instrument for public investments in the agriculture sector over five years. The compact:- a) Sets the parameters for a long term partnership in the agriculture sector; b) Specifies key commitments on the part of GoU and all stakeholders including Development Partners (DP), Private Sector, farmer organizations and CSO; c) Clarifies expectations with respect to the agribusiness and farming communities in order to ensure successful implementation of the DSIP. The Compact spells out the GoU commitment as espoused in the draft NAP with regard to the principles and objectives as well as the DSIP. It also emphasizes the GoU and DP commitment to mobilization of resources for DSIP implementation. It ends with endorsement of the various categories of stakeholders. The CAADP comprises of four pillars namely:- 1. Expanding the area under sustainable land management and reliable water control systems; 2. Improving rural infrastructure and trade related capacities for market access; 3. Increasing food supply, reducing hunger and improving responses to food emergency crisis; 4. Increasing agricultural research, technology dissemination and adoption. Strengths of the CAADP and the Compact in Relation to Farmer Entrepreneurship CAADP pillars are supported by cross cutting issues namely; academic and professional training in agriculture, knowledge systems, peer review and policy dialogue. By implication, it provides a platform for discussion of issues that may include farmers entrepreneurship development. The Compact also emphasises the fact that implementation of CAADP will be through the DSIP which has been discussed earlier. In this regard, monitoring and evaluation of CAADP is made easier because DSIP annual and periodic reviews will provide indicators that monitor progress and achievement of the CAADP implementation. 19

30 Weaknesses of the CAADP and the Compact in Relation to Farmer Entrepreneurship The Compact does not make any specific reference to farmers entrepreneurship and it can be argued that this may not have been entirely necessary since CAADP represents broad statements of intent at regional level. However, it needs not be over emphasized that a significant proportion of the signatories (states) to the agreement are dependent on the agriculture sector for its contribution to enhanced citizens livelihoods and sustainable economic growth. Therefore, since farmers entrepreneurship development has been argued as being critical to positive outcomes in that regard, it would be prudent for CSOs to make a strong case for the inclusion of Farmers Entrepreneurship Development in CAADP activities. Key Recommendations to Improve the CAADP in Support of Farmers Entrepreneurship Development It is recommended that CSOs incorporate CAADP issues in the proposed dialogue processes at the EAC level as well as at country level with specific regard to farmers entrepreneurship development The Comprehensive National Development Framework (CNDF) In 2008, the Government of Uganda developed and launched a new national long term development framework that replaced the previous visioning (Vision 2025) framework. The Comprehensive National Development Framework (CNDF) comprises five principal elements, namely: the 30 year national Vision 2035; the 10 and 5 year national development plans; and the annual plans and budgets. The 30 year national vision is a shared aspiration of where Uganda is, where it wants to go and how she plans to get there. It therefore provides the focus for national development efforts. The vision is expected to motivate the people and define the direction and strategy towards the attainment of agreed long-term goals. It would be the rallying point for every Ugandan to work towards a common purpose and values. Experience with Vision 2025 revealed the importance of a clearly defined institutional and legal framework for the implementation of a national strategy. To this end, the GoU established the National Planning Authority (NPA) created by an Act of Parliament in accordance with the Constitution. In developing the Long-term Development Framework, the NPA engaged in detailed consultations with key important stakeholders including the Office of the Prime Minister and the Ministry of Finance, Planning and Economic Development, line ministries and local governments and other stakeholders. This was intended to create the ownership necessary for acceptance and sustainability of the Long-Term Development Framework. Strengths of the CNDF in Relation to Farmers Entrepreneurship The CNDF is a national planning and visioning framework and as such does not make any explicit reference to farmers entrepreneurship. However, it provides the foundation for development of national and sector policies, plans and strategies some of which do make reference to farmers entrepreneurship. Gaps and Weaknesses of the CNDF in Relation to Farmers Entrepreneurship The CNDF and specifically Vision 2035 does not make any specific reference to farmers entrepreneurship although it can be argued that it is not expected to do so. One would have expected that 2035 would witness a significant proportion of the productive population in the category of successful farmer entrepreneurs. Key Recommendations to Improve the CNDF in Support of Farmers Entrepreneurship Development Since the CNDF is a national planning framework, CSOs should ensure that they effectively contribute to the visioning and evaluation processes especially with regard to the principles of inclusiveness and wide consultations Prosperity for All (PFA) Vision Following lessons learned from implementation of the Plan for Modernisation of Agriculture (PMA), which was GoU s multisectoral approach to agricultural development, and the Rural Development Strategy (RDS), that was Ministry of Finance, Planning and Economic Development (MoFPED) response in 2005 to implementation gaps of the PMA, GoU articulated a new vision for the country namely the Prosperity for All (PFA). The Prosperity for All (PFA) vision cardinal principle is to identify and support economic enterprises that 20

31 will enable households (farmers) to earn daily, periodic and long-term income, with a target of UGX 20 million per household per year. To achieve this vision, all government agencies and local governments must implement existing programs in an integrated manner and with a higher level of efficiency in order to bring about economic transformation, especially in rural areas. It is also emphasized that the PFA is a vision, emphasizing enterprise selection and mix at farm level and seeking improved coordination across government, because there is a tendency to perceive it as a new program with separate funding. The DSIP states that PFA will be achieved through improved implementation of existing government programs. Strengths of the PFA in Relation to Farmer Entrepreneurship Development The most glaring and very positive feature of the PFA institutional arrangements is the level of involvement of the head of state which represents significant political commitment to the policy. The PFA also emphasizes key aspects related to farmer entrepreneurship as well as market development. It stresses the need for farmers to adopt a more commercial orientation to farming activities. It is important to note that the reference to the PFA is made in the NDP and other national policies and strategies. This is not accidental considering that the PFA initiative was a key rallying point for the national Presidential elections held in However, this reference is significant when viewed from the point of view of the objective of commercialization of subsistence agriculture and by implicit implication support to farmers entrepreneurship development. Gaps and Weaknesses of the PFA in Relation to Farmers Entrepreneurship There is no doubt that the GoU s motivation at that time of formulation of the PFA arose from sincere concern about the continued plight of the poor farmers in Uganda and the formulation of the PFA are therefore well intentioned. However, the glaring similarity in the goals, objectives and activities of the PFA, the Rural Development Strategy (RDS) and the Plan for Modernization of Agriculture (PMA) leads to the following conclusions:- 1. When looked at within the context of timing of the formulation of the interventions, the aspirations of the RDS and PFA interventions are not very different from those of the PMA, in fact the objectives, goals and activities are a mirror image of the PMA intervention; 2. In a number of areas, there is a clear case of duplication and or over lap; for example provision of extension services, addressing marketing issues, micro finance and the presence of similar target groups; 3. The institutional arrangements indicate that the two efforts PFA and the RDS attempt to utilise existing entities. However, the PFA modalities raise some questions like the composition of the cabinet sub committee, the inter ministerial or stakeholder technical committee mandated to prepare an integrated implementation plan and lack of clarity as to who will chair the committee. Key Recommendations to Improve the PFA The PFA is GoU s vision that focuses on improving the livelihoods of Ugandan farmers. It implicitly emphasizes key tenets of farmer entrepreneurship development and in that regard merits full support from the CSO community. It is therefore recommended that all engagement and dialogue processes take into consideration or ensure close alignment with the aspirations of the PFA. This would be prudent in light of the fact that evaluation of the PEAP in 2008 revealed that ignoring political manifestos or intentions usually led to policy confusion and duplication of effort through the formulation and implementation of parallel interventions National Development Plan (NDP) 2010/ /15 Following evaluation of implementation of the ten year Poverty Eradication Action Plan (PEAP), the GoU launched the National Development Plan (NDP) 2010/ /15. The NDP, whose theme is Growth, Employment and Socio-Economic Transformation for Prosperity, is the new strategic planning framework for Uganda s development for the five years 2010/11 to 2014/15. The plan is formulated on the basis of a broader national vision for Uganda s transition from a peasant society to a modern and prosperous country over the next 30 years by significantly improving specific development indicators associated with socioeconomic transformation. 21

32 The NDP recognises that in spite of the commendable economic performance over the last two decades, there were still challenges that continued to undermine faster economic growth and socio-economic transformation. They included the failure to achieve significant agricultural productivity growth, release of excess labour from the agriculture sector and the dominance of primary commodities over industrial products implying the lack of value addition and slower than desirable agricultural and industrial growth among others. The NDP identifies four broad national investment priorities, one of which is Facilitating Availability and Access to Critical Production Inputs with three sub themes that are pertinent to the agriculture sector. They are:- 1. Provision of inputs for agricultural production; 2. Improved meteorological services which will target a total overhaul and automation of the meteorological instrumentation to enhance predictabilty of weather and climate parameters and to increase forcast reliability; 3. Increasing access to water for agricultural production. Strengths in Relation to Farmer Entrepreneurship The NDP sectoral analysis makes reference to farmer entrepreneurship development as highlighted in the DSIP whose goals and objectives are also highlighted in the document reflecting effective linkage. It also makes specific reference to women entrepreneurial development which is significant in light of the fact that a significant proportion of women are involved in farming activities. Gaps and Weaknesses in Relation to Farmer Entrepreneurship The larger proportion of references to entrepreneurial development is made mainly from a business and not necessarily a farmers perspective and this may not merit consideration as a weakness or gap unless one considers the importance of farmers entrepreneurship development and its tenets potential contribution to transitioning Uganda s agriculture from subsistence to a commercial status. Key Recommendations to Improve the NDP in support of Farmer Entrepreneurship Development The NDP provides for periodic review process on the basis of implementation of its component strategies. It is recommended that CSOs participate in these processes and add Farmers Entrepreneurship Development and other salient and deserving issues on the agenda for discussion within the context of relevant NDP strategies and sectoral programs The Decentralization Policy Strategic Framework (DPSF) The goals and objectives of democratic decentralization are to:- (a) Transfer real power to Local Governments and thus reduce the workload of remote under-resourced central officials; (b) Bring political and administrative control over services to the point where they are actually delivered, and thereby improve accountability and effectiveness, and promote people s feeling of ownership of programmes and projects executed in their local governments; (c) Free local managers from central government constraints and enable them to develop effective and sustainable organizational structures that are tailored to local circumstances; (d) Improve financial accountability and responsibility by establishing a clear link between payment of taxes and provision of services; (e) Improve the capacity of local authorities to plan, finance and manage the delivery of service; and (f) Promote local economic development in order to enhance people s incomes. Initially, the policy framework for decentralization was enshrined in the Constitution of Uganda. However, in 2006, the Ministry of Local Government found it expedient to develop a specific decentralization policy which also provided for the formulation of a Local Government Strategy and Investment Plan (LGSIP). 22

33 Furthermore, the policy as enshrined in the constitution did not place emphasis on local economic development, but experience has shown that this is essential for sustainable development. In recognition of the importance of effective coordination of policies and interventions in local governments, this framework seeks to achieve the following objectives: a) To provide strategic direction for implementation of the decentralisation policy in relation to all other ongoing fundamental reforms; b) To provide a framework for deepening democratic governance; c) To provide a framework for sustainable service delivery to communities; d) To contribute to poverty reduction through promotion of production and related activities in order to raise people s incomes and material well-being; e) To strengthen the role of the Ministry of Local Government in promoting and coordinating the implementation of Decentralisation in the country; and f) To provide the basis for defining a mechanism for financing the LG sector for development. Strengths of the DPSF in Relation to Farmers Entrepreneurship The policy makes indirect reference to farmers entrepreneurship through its objective of promoting production and related activities in order to raise peoples incomes and material well being. It also important to note that implementation of the DPSF provides the vehicle for delivery of a spectrum of services which by implication, would include farmers entrepreneurship development. A key strength of the DPSF is the provision of a strategy for its implementation through the Local Government Sector Investment Plan (LGSIP) which is discussed later on in this document under the section dealing with plans and strategies. A key strength of the DPSF is its objective to contribute to poverty reduction through promotion of production and related activities in order to raise people s incomes and material well-being which is critical for farmers entrepreneurship development. The activities or interventions to achieve this policy objective are embedded in the Local Economic Development program and related Community Driven Development intervention. Another strength is the provision for setting and monitoring standards of Local Government service delivery which standards will influence the environment for and the pace of farmers entrepreneurship development. Gaps and Weaknesses of the DPSF in Relation to Farmers Entrepreneurship Close perusal of the plethora of literature on implementation of the decentralisation policy suggests that there has been an increasing dilution of the original intention of devolution and an increasing trend that suggests de-concentration of responsibility with previously devolved powers being slowly returned to central government. This may have grave implications on efforts to nurture farmers entrepreneurship development since innovation targeting growth would be expected to thrive in local environments where key decision making is close to beneficiaries of services. Key Recommendations to Improve the DPSF in Relation to Farmers Entrepreneurship The DPSF is a key framework that impacts on service delivery for farmers and citizens of Uganda. in this regard, it is critical to the efforts directed at enhancing the livelihood status of farmers and budding farmer entrepreneurs. It is recommended therefore that CSOs deliberately monitor and periodically engage with the LG sector institutions like the Ministry of Local Government (MoLG) and the Uganda Local Government Association (ULGA) especially through involvement in periodic and annual reviews like the Joint Annual Review of Decentralization (JARD) Uganda Food and Nutrition Policy (UFNP) The overall goal of the UFNP is to ensure food security and adequate nutrition for the health as well as social and economic well-being for all the people in Uganda. The overall objective of the policy is to promote the nutritional status of the people of Uganda through multi-sectoral and coordinated interventions that focus on food security, improved nutrition and increased incomes. 23

34 24 A Review And Analysis Of Policies On Farmers Entrepreneurship Development The key specific objectives are to:- I. Ensure availability, accessibility, affordability of food in the quantities and qualities sufficient to satisfy the dietary needs of individuals sustainably; II. Promote good nutrition of all the population; III. Incorporate food and nutrition issues in the national, district, sub-county and sectoral development plans; IV. Ensure that nutrition education and training is incorporated in formal and informal training in order to improve the knowledge and attitudes for behavioural change of communities in food and nutritionrelated matters; V. Ensure food and income security at household, sub-county, district and national levels for improving the nutrition as well as the socio-economic status of the population; VI. Monitor the food and nutrition situation in the country; and VII. Create an effective mechanism for multi-sectoral co-ordination and advocacy for food and nutrition. Strengths of the UNFP in Relation to Farmers Entrepreneurship Development The UFNP and its associated strategies were formulated within the context of the then overall national development policy objective, which at the time of its formulation was to eradicate poverty as detailed in the Poverty Eradication Action Plan (PEAP). This is important given that poverty was and still is one of the key determinants of malnutrition and the recognition of the vicious cycle between poverty and malnutrition. In addition, the policy was in line with the Plan for Modernisation of Agriculture (PMA), which seeks to ensure food security, create gainful employment, increase incomes and improve the quality of life of the rural people. The policy is also in the line with other national policies, which include the National Health Policy, Vision 2025, the National Gender Policy, Population Policy and National Plan of Action for Children, the Decentralisation Policy Strategic Framework, Universal Primary Education and the National Environment Policy. The policy and strategies are also aligned with international treaties, conventions and resolutions to which Uganda is committed and signatory to. Weaknesses of the UNFP in Relation to Farmers Entrepreneurship Development Due to the nature of its focus on nutrition, the policy does not make any direct reference to farmers entrepreneurship development. Furthermore, the policy requires review because the national policies that it states it is in alignment with have been overtaken by events or been replaced by new frameworks, a case in point is the Vision Key Recommendations to Improve the NAP in Support of Farmers Entrepreneurship Development Food and income security at household, sub-county, district and national levels for improving the nutrition as well as the socio-economic status of the population is very critical to farmers entrepreneurship development because healthy farmers are also potential healthy farmer entrepreneurs. It is recommended that CSOs monitor the review of the UFNP with a view to engagement and contribution to those aspects that would be relevant to farmers entrepreneurship development The National Trade Policy (NTP) 2007 The main objective of the policy is creation of wealth, employment, enhancement of social welfare and the transformation of Uganda from a poor peasant society into a modern and prosperous one. To achieve the policy objective, the GoU will among others implement a number of policy actions as follows: a) Enhancing the competitiveness of Uganda s products and services in the domestic, regional and international markets; b) Facilitating the smooth flow of trade, while ensuring that trade conforms to national and international laws and regulations; c) Strengthening trade institutions, such as those dealing with trade policy, standards, trade facilitation/ customs, and provision of trade information; d) Securing and maintaining improved market access to the regional and international markets for

35 Uganda s goods and services; e) Providing trade/market information to traders and all the business community to enable them reach prudent and optimal investment decisions; f) Developing capacity to exploit existing market access opportunities; g) Boosting capacities of the socially and economically disadvantaged sections of the community to trade; h) Developing domestic trade and ensuring that it is a foundation for developing Uganda s capacity to produce and engage in remunerative international trade; i) Exploitation of policy synergies, coherence and complementarities between different policies on one hand and trade policy on the other; j) Ensuring that the gains from growth in trade are equitably shared, while cognisance is taken of the fact that more gains will accrue to those who participate more in trade activities or undertake deliberate efforts to harness the available opportunities. Three policy interventions stated in the policy are stated as follows:- 1) Development of domestic trade:- a) Formulate and implement specific sectoral policies necessary for prudent management of a liberal economy such as competition and consumer protectionist policies; b) Implement the marketing and agro processing strategy (MAPS) of the PMA; c) Encourage and foster collective action through inter alia the development and strengthening as well as diversification of cooperatives; d) Strengthen the district commercial offices through provision of sufficient technical, human and financial resources; e) Ensure a clear link between investment, production and trade in the implementation of the policy; f) Implement a competitiveness strategy while ensuring that all relevant GoU MDAs are on board; g) Develop and implement a Market Information System at national and at all local levels in the country; h) Encourage bulk marketing and adherence to commodity standards through inter alia cooperative societies and area marketing cooperative enterprises farmers groups; i) Enact appropriate laws and develop guidelines to ensure that growth in trade leads to and ensures inter alia food security in the country; j) Develop and implement a National Standards Policy to enhance and ensure conformity with standards requirements, quality management and assurance; k) Develop and implement a National Sanitary and Phytosanitary Measures Policy so as to protect plant, animal or human life and health; l) Encourage and support establishment of production networks/clusters within the country and across neighboring countries so as to allow regional specialization an dynamics in production and trade; m) Encourage the use of local materials in the production process with a view to stimulating growth in local production sectors; n) Encourage the consumption of locally produced goods and services; o) Mitigate the adverse effects of practices by the country s trading partners by invoking trade defence measures; p) Harmonize local taxation and licensing policies and practices with national trade development priorities with a view to eliminating double taxation; q) Provide affirmative action to local suppliers under GoU procurement while ensuring conformity with existing national laws. 2) Development of International trade; 3) Trade policy synergies and complementarities and relation to related cross cutting policies where key policy actions will include:- a) Work with training institutions, in both the public and private sectors, to provide business and entrepreneurial skills as well as other skills that are relevant to private sector development, competitiveness, and trade policy; b) Develop and implement through a public-private partnership, a market information system at the national level and at all districts in the country; c) Through a public-private partnership approach, ensure the availability of trade-facilitating infrastructure (such as cold storage facilities, refrigerated trucks, laboratories among others); 25

36 26 A Review And Analysis Of Policies On Farmers Entrepreneurship Development d) Through the relevant line Ministries and agencies, enact policies and design strategies to ensure development of productive capacity to take advantage of trade opportunities arising from various trading arrangements; e) Enact and/or review trade and commercial laws that create, or are supportive of a dynamic trade sector; f) Strengthen the consultative mechanism between the public and private sectors on trade policy formulation and implementation. The Inter-Institutional Trade Committee (IITC) under the Ministry of Tourism, Trade and Industry is hereby formally established. The Committee shall draw members from the public sector, and private sector including civil society and academia. The Committee shall deliberate on all trade and trade-related matters and make recommendations to the Ministry. The Permanent Secretary of the Ministry responsible for Trade shall, in collaboration with parent institutions:- i. Appoint members from relevant institutions to the Committee ii. Formulate and implement measures and strategies aimed at enhancing the usage of electronic commerce; iii. Develop and formulate laws and policies to protect intellectual property rights, with a view to, inter alia, protect Uganda s genetic resources, and encourage innovativeness; iv. Encourage the acquisition and usage of modern technology through implementation of measures aimed at promoting technology transfer. Strengths in Relation to Farmers Entrepreneurship Development The policy priorities include the provision for the exploitation of policy synergies, coherence and complementarities between different policies on one hand and trade policy on the other. It also provides for the creation of opportunities for equal participation in trade through entrepreneurial development, giving priority to the socially and economically disadvantaged groups in society. Implicit in this category of the socially disadvantaged are farmers. The policy actions make provision for working with training institutions, in both the public and private sectors, to provide business and entrepreneurial skills as well as other skills that are relevant to private sector development, competitiveness and trade policy. Again, farmer entrepreneurship development is implicit since the spirit of the provision has a heavy business and not necessarily farmer oriented emphasis. The policy also provides for the development of a Trade Sector Development Plan to guide implementation of the National Trade Policy. From a policy and legal review perspective, it provides for policy review, formulation and enactment of laws for trade development. Weaknesses in Relation to Farmers Entrepreneurship Development The policy was formulated in 2007 and is grounded in national policy frameworks such as the PEAP, the RDS and the Vision 2025 that have since expired, changed or been replaced. It does not make any direct reference to farmers entrepreneurship development and emphasis is essentially on business firms as opposed to farmers operations. The policy makes provision for the development of a Market Information System which appears to be duplication of creation of other systems in other frameworks like the DSIP and the NCDP. Key Recommendations to Improve the NTP in Support of Farmers Entrepreneurship Development It is recommended that the NTP be reviewed to be brought in line with current policy and legal frameworks such as the NDP and the NAP among others. It is also recommended that provision for establishment of the Market Information System should not duplicate efforts of similar intentions in other frameworks like the DSIP and NCDP The National Industrial Policy (NIP) 2008 The National Industrial Policy sets out the strategic direction for industrial development in Uganda for ten years and seeks to address the constraints as well as priorities considered key to Industrial development in Uganda. The principle areas of focus of the policy are:- a) Exploiting and developing natural domestic resource-based industries such as petroleum, cement, and fertilizer industries; and promoting competitive industries that use local raw materials;

37 b) Agro-processing focusing on food processing, leather and leather products, textiles and garments, sugar, dairy products, and value addition in niche exports; c) Knowledge-based industries such as ICT, call centres, and pharmaceuticals that exploit knowledge in science, technology and innovation; d) Engineering for capital goods, agricultural implements, construction materials, and fabrication akin to Jua Kali operations. The specific objectives of the National Industrial Policy will be to:- a) Create a business friendly environment for private sector led industrialisation in which industries will develop, improve productivity and the quality of products through, inter alia, creativity and innovation and become more competitive in the global economy; b) Improve infrastructure development for effective and efficient industrialisation program; c) Encourage and foster innovation, entrepreneurship, adjustment and adoption of best management practices in the quest for improved competitiveness; d) Create a framework that supports joint participation of the public and private sectors in the development of scientific and technological competencies for the production of more and higher value added goods and services for domestic consumption and export; widen the tax base; and increase integration with Agriculture; e) Facilitate improved supply chain efficiency and market responsive product and brand development; f) Encourage foreign direct investment in industry and industry related services. g) Promote environmentally sustainable industrial development to reinforce national goals of long-term growth and development; h) Support the growth and development of a skilled and productive labour force and to ensure that a body of experienced entrepreneurs and trained managers are particularly focused on industrial development; i) Promote safe work place practices in all industry sub-sectors; j) Promote the participation of disadvantaged sections of society in industrial development activities; k) Create support systems for sustainable micro and small industries development; l) To create jobs for the widest section of the population. Strengths in Relation to Farmers Entrepreneurship Development The policy focus is essentially on industrial development which may not necessary include farmers entrepreneurship development although its inclusion is implicit if the tenets of expansion, growth and farming activities and farmer innovation are put into consideration. It supports the development of a skilled and productive labour force and ensures that a body of experienced entrepreneurs and trained managers are focused on industrial development. In essence, it provides an extended avenue for farmers to expand into areas that would ensure linkage to extended farming operations. In this regard, provision that focuses on creation of jobs for the widest section of the population would necessarily include farmers since a proportion of 73% is directly engaged in agriculture and related activities. The objective to create a framework that supports joint participation of the public and private sectors in the development of scientific and technological competencies for the production of more and higher value added goods and services for domestic consumption and export; widen the tax base; and increase integration with the Agriculture sector is also key to provision of opportunities for farmers entrepreneurship development. Ensuring integration of industrial development activities would imply increased value addition related activities and in tandem with growth, expansion and increased farmer entrepreneurial activities and farmers entrepreneurship development therefore. The policy actions include revival and strengthening of the Uganda Development Bank, review and harmonization of all sector and sub sector policies in support of industrial development and the promotion of Public Private Partnerships. Other strengths of the policy include actions intended to deepen and widen the relatively narrow industrial structures. The specific actions refer to encouragement of cluster formation for enhancement of value addition and the establishment of model agro processing industries through improved coordination of affiliated institutions consistent with the aspirations of the PFA. Other policy actions that are implicitly supportive of farmers entrepreneurship development include creation of national capacity for science and technology, incubation and innovation as well as skills and human resource development with specific reference to strengthening entrepreneurship development institutes with a view to nurturing business culture, mentoring, innovation and entrepreneurial spirits. 27

38 28 A Review And Analysis Of Policies On Farmers Entrepreneurship Development The policy action also provides for occupational health and safety promotion and compliance with international and national standards with regard to quality management. The policy actions also include promotion of gender balanced and gender sensitive industrial transformation for industrial development. It also provides for an implementation framework that stresses collaboration with MDAs that have a direct role in its implementation and commits itself to the development of National Industrial Sector Strategic Plan (NISSP). Key areas of focus related to farmer entrepreneurship development include; production of raw materials by the peasant (farmers) sector, plantation type, engineering and knowledge based industries. Last but not least, it also provides for joint monitoring of policy and plan implementation coordinated by the Ministry of Trade and Industry. Gaps and Weaknesses in Relation to Farmers Entrepreneurship Development The policy focus is essentially industrial and apart from periodic references to entrepreneurial development and targeting the widest section of the population (read farmers), it does not make direct mention of farmers entrepreneurship development. Furthermore, the policy was developed in 2008 and therefore would require realignment or harmonization with the NDP that was launched in In this light however, it has been mentioned earlier that the Ministry will conduct a review and harmonization of all sector and sub sector policies. Key Recommendations to Improve the NIP in Support of Farmers Entrepreneurship Development Although the transition of small scale farmers to commercially oriented farmer entrepreneurs with close linkage to the industrial sectors is expected to be a gradual process, the NIP is definitely key to farmers entrepreneurship development because farmers are a key source of raw materials. It is recommended that the NIP be reviewed and that the process ensures the provision for effective upstream and downstream linkages along the production value chains The Draft National Standards and Quality Policy (NSQP) 2010 The changing global economic environment prompted by liberalization and privatization policies in Uganda along with globalization of trade, called for a strong standards and quality infrastructure to support industry, trade, environment and consumer s health and safety. In this light, it was considered imperative to put in place measures and institutional mechanisms to ensure that all goods and services for domestic and international markets met the required quality, environment, health and safety standards through appropriate production technologies and other value addition processes. It was envisaged that this would significantly increase the producers, processors, traders and consumers health, wealth and welfare; thereby strongly contributing to Government s sustainable development efforts to eradicate poverty through wealth creation and stimulate prosperity for all. In order to enhance the competitiveness of local industries, promote fair trade, protect the health and safety of the consumers, including prevention of trade in sub-standard products and to coordinate the provision of standardization services in Uganda; Government in 1983 promulgated the Uganda National Bureau of Standards (UNBS) Act, Cap 327; as amended in Subsequently a draft National Standards and Quality Policy (NSQP) has been formulated based on a number of factors that are vital for setting the foundation for its implementation. The Strategic Objectives of the National Standards and Quality Policy are to:- a) Rationalize, harmonize and strengthen the Standards Regulatory Framework; b) Establish a framework to enhance coordination and collaboration among standards agencies; c) Develop and improve standardization and quality infrastructure; d) Strengthen human resource capacity in standardization; e) Enhance standards awareness and dialogue to improve compliance; f) Improve conformity to national standards; g) Support both the public and private sector entities to comply with set standards. In order to realize the vision, mission and objectives of this policy, Government shall collaborate with the private sector to implement the following strategies and actions:-

39 a) Harmonize and Strengthen the Standards Regulatory Framework Reviewing and aligning the standards regulatory framework will lead to an efficient and effective national quality infrastructure that supports regional, international trade and consumer and environmental protection. b) Establish a framework for Coordination and Collaboration among Standards Agencies Effective coordination and collaboration among standards agencies is needed for effective and efficient utilization of financial, technical and human resources; in order to maximize synergies among the standards and related institutions. c) Enhance Public awareness on Standards It is also intended that policy implementation will be enhanced by the creation and strengthening of public awareness on standards. d) Develop and improve Standardization Infrastructure In order to effectively access markets; trade and protect consumers and environment; as well as participate in international standardization activities; progress shall be made at national level in developing and investing in the infrastructure and institutional framework. During the policy implementation, Government will take advantage of existing bilateral and multilateral technical cooperation that includes technology transfer and skills development. e) Strengthening of the national conformity assessment system Conformity assessment regimes have increasingly become important requirements for accessing international and regional markets and, in some cases, have become major technical barriers to trade. Government will ensure that adequate capacity is availed to all standards bodies and regulatory agencies to carry out their mandates. f) Support the private sector to conform to set standards Government shall promote a public-private partnership approach in developing and implementing national standards and quality measures, as well as establish an effective coordination and collaboration mechanism with the private sector, including consumer rights advocacy associations. Strengths in Relation to Farmers Entrepreneurship Development The policy provides a supportive framework that ensures that institutions responsible for standards and quality deliver on their mandates. In relation to farmers entrepreneurship development, it ensures that where farmers are involved in expansion and growth related activities through innovation, there are minimum standards that are complied with to guarantee continuity and sustainability in the agriculture and other sectors. The policy implementation and monitoring framework makes reference to a number of MDAs and Private sector institutions responsible for mandates related to standards and quality management. Weaknesses in Relation to Farmers Entrepreneurship Development The policy does not provide for an explicit instrument to guide implementation in the form of an investment plan or strategy. In addition, it observes that despite the existence of numerous institutions with both legislative and executive powers to implement standards and technical regulations; many of these have overlapping and sometimes conflicting mandates. Furthermore, the policy states that coordination and collaboration of these standardization activities is presently very weak and more often informal especially in the sharing of information. Last but not least, it makes limited reference to monitoring and evaluation operations by way of placing responsibility with the lead Ministry of Trade and Industry. 29

40 Key Recommendations to Improve the NSQP in Support of Farmers Entrepreneurship Development It is recommended that the NSQP provide for comprehensive elaboration of the reasons for overlapping and conflicting mandates and additionally recast the strategies and actions that it provides for addressing this key challenge. It is also recommended that the policy include more comprehensive policy actions and strategies with regard to monitoring and evaluation as well as financial modalities. It should also indicate whether a Standards and Quality Investment Strategy and Plan will be developed to guide implementation of the policy. 3.5 Legal Frameworks The Constitution of the Republic of Uganda 1995 The Constitution of the Republic of Uganda defines the manner in which the Government of Uganda is organized to deliver a better future for its citizens. It defines the objectives and principles that guide all the organs and agencies of the State, all citizens, organizations and other bodies and persons in applying or interpreting the Constitution or any law and in taking and implementing any policy decisions for the establishment and promotion of a just, free and democratic society. In its Sixth Schedule, Article 189, the Constitution lists the functions and services for which government is responsible. Among these include forests and game reserves, national research and agricultural policy which specifically or otherwise relate to the agriculture sector. The management of agricultural services in Uganda as prescribed in the 1995 Constitution schedule 6 Article 189 and the Local Governments Act, 1997 Section 97 and 98 mandates the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to discharge the following responsibilities:- I. Agricultural policy; II. Making national plans for the provision of services and coordinating plans made by local governments; III. National research policy; IV. National standards; V. National censuses and statistics; VI. Control and management of epidemics and disasters; VII. Any matter incidental to or connected with the functions and services mentioned in this Schedule. A key issue with regard to the Constitution is its provision for the creation of new districts and this must be respected. However, the rate at which the demands for new districts have been presented is considered to be rather unsustainable and it is suggested that it impacts negatively on the resources available for service delivery for citizens of whom, a significant proportion are farmers and budding entrepreneurs. For instance according to the Ministry of Local Government Policy Statement for the Financial Year , a total of UGX Bn (as emoluments only) must be reserved for the operationalization of a single district. It has also been increasingly suggested that the creation of new districts undertaken in a hurried manner, has generated many challenges namely; the high public administration costs; fragmented service delivery with reduced economies of scale; increased ethnicity; human resource constraints to deliver decentralised services which all undermine national unity and regional integration. 30

41 Figure 2: Challenges of District Creation A Review And Analysis Of Policies On Farmers Entrepreneurship Development Proponents of district creation claim that the main objective is bringing services closer to the people, increased empowerment of the communities and increased participation of local communities in decision making processes. Sceptics on the other hand consider the continued creation of districts as a mere increase of demands on the central government and by implication and sub optimal utilization of the severely constrained resource envelope. It has also been reported that the granting of district status is not followed with commensurate funding requisite for effective delivery of service other than a division of grants from the centre according to the parameters of area, population and other specific criteria. However, it is becoming increasingly clear that the resources transferred to local governments in lower LGs are progressively decreasing, are hardly adequate to meet administrations operational costs and are increasingly constraining capacity to deliver basic public services. This issue is significant because farmer entrepreneurship development can only happen if the environment is also favourable and in regard to the issue of district creation, there are strong reasons to suggest that inefficient and effective service delivery could act as an impediment to the concept of farmer entrepreneurship. Strengths of the Constitution in Relation to Farmers Entrepreneurship Development The constitution places institutional responsibility for farmers and related issues within the ambit of the Ministries of; Agriculture, Animal Industries and Fisheries; Trade and Industries, Water and Environment and other relevant Government Ministries, Departments and Agencies (MDA). Gaps and Weaknesses of the Constitution in Relation to Farmers Entrepreneurship Development The constitution does not specifically refer to Farmer entrepreneurship or market development and is not expected make that specific provision. However, the issue of district creation has the potential to undermine effective service delivery and by implication the efforts by farmers to improve the livelihoods and economic status. Related to this, is the possibility of this situation slowing the required transition from subsistence to commercial farming and creation of farmer entrepreneurs. Key Recommendations to Improve the Constitution in Support of Farmers Entrepreneurship Development CSOs should develop a lobbying and advocacy strategy to influence constitutional amendment processes as well as monitor and challenge some decisions related to district creation. CSOs should study the law that provides for the alteration of local government boundaries and consider the pros and cons of advocating for provisions for reversing such decisions should districts fail to be viable. 31