UG Economic Forum: Experts call for reorganisation of agriculture sector

Experts in various fields have called upon the government to re-organise the agriculture sector if the agro-industrialisation agenda is to yield tangible fruits.

According to experts,this endeavour requires farmers to work together to achieve economies of scale and make the economy work to allow for a fresh breath of entrepreneurs into the sector.

The remarks were made during day one of the Uganda Economic Forum running from 5th - 9th September at Next media park organized by Next Production.

Hamudan Hibbombo, manager in charge of compliance in domestic taxes at Uganda Revenue Authority (URA) said that If Ugandans are to look at agriculture as the backbone of the economy, there is a need to transit form small holder to commercial farming.

"Financing is very key for the agricultural sector. Within the law, we have a provision that allows for coming together. If all these farmers are able to work with different entities like Uganda Development Bank, the output will be safeguarded when it comes to taxes," he said.

Hibbombo said agricultural products are not taxable because agricultural products are key for livelihoods.

The acting commissioner Economic Development Policy & Research Development at the Ministry of Finance, Planning and Economic Development, Uganda, Joseph Enyimu said the government, through a number of institutions like NARO, has been able to put drought and disease-resistant crops on the market to help the farmers.

"The other important side of research is market research (understanding what the consumers want). We have been stronger on the side of production. The uptake of research is also not high. It takes a commercial mind to appreciate the need to make changes in the business," he said.

He explained that the middle class in Uganda is expanding and their preference for protein is on the rise, adding that the agricultural sector in Uganda is very resilient and promising.

Steve Kakonge, Senior Investment Manager at Uganda Development Bank Limited, said that although the country’s agricultural sector is still not organized, it can still be transformed to make it commercial.

"We do finance the entire value chain, not just the farmers. Smallholder farmers have their challenges, and we offer advisory services. We offer out grower financing to those who aren't in groups," he said.

Kakonge said as a bank, they look at the entire value chain and offer a wide range of products, not just financial because their interest is to see how they can support smallholder farmers.

The Deputy Executive Officer at Next Media, Joseph Kigozi said he believes that the panelists that have been chosen are going to tackle the economic issues in these five days so that they can be able to bring a different form of discussion.

“As Next Media Services, we are committing our investment to make sure every Ugandan takes part in this discussion. As Next Media Services, we are privileged to be the platform taking the lead in creating what we believe is an important platform for discussing economic issues," Kigozi said.