A Virtual Market Platform(VMP); Integrating appropriate technology for Market Access!!

Henry & Radio Geek-Geofrey Pioneer by practically Building their AFI-VMP Platform.
Over the years AFI-VMP has undergone an evolutionary process from just an idea to a knowledge and skills based institution still in progress. Here we believe humanity is our business. Because 85% of Ugandans are rural based and subsistence farmers,they are poor. AFI is building on the charisma of its innovators to leverage the power of smallholder farmers through adoption of appropriate technologies linking farmers to markets.














Lack of financial resources to help smallholder farmers to bulk their commodities into reasonable volumes, improve quality, collective storage, packing and marketing hampers easier access to markets and competitive prices. By translation this is a key function of rural poverty among rural farmers. Smallholder farmer enteprise groups that are a key component in re-building the cooperative movement are critical in facilitating the reactivation of the Warehouse Receipt System(WRS) for collective storage, improving quality standards and collective marketing of grain such as maize, beans, rice at competitive prices. AFI-VMP will increase the momentum of adoption of the WRS in the country and help facilitate the emergency of village companies engaged in contract farming through techology adoption, market intelligence tracking and dissemination to rural farmers.










AFI-VMP in partnership with Rockford Harris Group and the INSPIRE Consortium has been engaged in farmer institutional development in Eastern & Central Uganda. These agribusiness programs have been geared towards improving farm productivity to avert food insecurity in addition to improving market access for surplus produce. Farmers face both structural and policy challenges that AFI believes can holisitically be addressed through partnerships and innovative approaches.
AFI-VMP is a rural based virtual platform integrating rural telecommunications & community radio technology to link smallholder farmer enterprises to local and regional markets through market intelligence broadcasts.VMP will be integrated with other initiatives gradually taking place in rural communities. AFI in partnership with Rockford Harris Group & AgriNet(U) are working to reactivate the Warehouse Reciept System(WRS) while working with Africa2000 Network on farmer institutional development under the INSPIRE consortium.




YOUTHS FORM THE CORE OF OUR COMMUNICATION STRATEGY.




Key challenges to agribusiness in rural farming communities is access to markets and information. A traditional lack of trust and awareness of a need for business linkages between value chain actors can be resolved through smallholder farmer group formation and capacity enhancement. This is already underway in areas where AFI has established contacts for the partnership. Enterprise groups have been identified and capacity building underway. Market Access Companies with a social enterprenuership concept are leveraging the power of markets to stimulate development.


What then is the value of AFI-VMP? What are the constituent components of AFI-VMP?

While policy, market, infrastructural challenges still hammper the extension of television and telecom services in rural communities, radio communication technology has proved to have a more rural percolation ability. Atleat each homestead has a radio unit through which information can be accessed. The liberalization of the airwaves has also facilitated the investment in FM Radio a sector that previously was the preserve of the state. A lot is taking shape in rural community therefore. But there are missing links. While commercial FM stations have come up their programming is monetary driven. Community development programs such as sustainable natural resources management which are relevant are given less priority. Farmers have no leverage to influence radio programming and investors are interested in what brings immediate returns-the focus on market forces.

AFI-VMP Project addresses a market information gap building a virtual market platform through which rural farmers can obtain commodity prices in the market. The object is to facilitate the capacity of a farmer to negotiate, participate in farmer group discussions, group formation, capacity enhancement programs so as to leverage bargaining power in the market place.

AFI-VMP COMPONENTS:
  • Rural Market Information Centers(RMICs). These could rural telecenter points or kiosks manned by Enterprise Group Team Lead Resource Persons(TLPs) for posting information on bulletin boards.
  • Short Messaging Systems(SMS) due to the emerging extension of the cellphone in rural areas. Telecom peneration of rural communities due to increased competition is pushing telecom services to untapped rural economies. Problem is content and this where AFI-VMP in building its innovation platform to develop content that is relevant to a smallholder farmer.A napshot of commodity prices will be conducted in a basket survey throughout the country on a double entry basis and this information will be synthesized and fed into our online system. A database of cellphone users in farming communities is under-construction and regular update especially for community resource persons and TLPs through market intelligence information will be broadcast in local languages. Uganda today has 5 operating telecos in a cut-throat competition which has translated into opportunities for rural farmers. What remains is how to appropriate that technology with appropriate development content.
  • AFI-VMP Radio. This will be the key component of the platform because of its radius, breadth of information penetration and affordability of access by many farming families.The radio is expected to cover the whole of Eastern Uganda with a population of about 10million people. Eastern Uganda is engaged in grain production with a number odf value chains that lack efficiency to obtain maximum market opportunities. Commodity and value chains such as rice, maize, wheat, beans are critical for the warehouse reciept system. The community radio will run on a 50/50 program protocol where 50% of airtime will be community based development information broadcasting while 50% will be commercial for sustainability of the project. AFI-VMP has already procured low-cost radio equipment from China and installation & testing underway.
  • Warehouse Reciept System(WRS). As farmers get organized into enteprise groups, the market is taking shape in rural Uganda. The collapse of the cooperative movement with the liberalization of the economy isolated smallholder farmers and took away the leverage that comes with resource pooling. The cooperative movement is currently getting reactivated through strategic partnerships between the private sector, civil society and government through policy reforms. AFI-VMP will link farmer enterprise groups to the emerging WRS infrastructure in the region and the country. AFI-VMP has developed contacts with the Uganda Commodities Exchange(UCE), a public institution that licences Warehouse operators & commodity brokers in the country. AFI-VMP has also developed contacts with Post Bank Uganda and other commercial banks that have warehouse reciepting products in the country for tracking information on commodity brokers. This market information will be compiled after verification for broadcasting on the community development program as well as dispatch to RMICs on a daily basis to smallholder farmers and intermediary commodity traders.Our partnerships are to leverage social impact and avoid duplication. AFI-VMP has existing partnerships through the INSPIRE Consortium. Each contituent partner has specialised strength either in community mobilization, technology adoption, soil science & cropping, local governance, finance and business development. AFI-VMP is strategically investing in a component that presents the weakest link in the partnership-Leveraging the bargaining power of a smallholder farmer through market information access using appropriate technology".

Water Harvesting innovations in rural agriculture-The Policy Outlook


The reduction of hunger and poverty depends on improved access to water for poor
rural people
. Progress in community water supplies and agricultural water management (AWM), particularly irrigation, is one of the success stories of the twentieth century. However, it is disappointing to learn that AWM, by far the largest consumer of water in developing countries, has had little impact on world hunger and poverty. The experience of agency- and government-led interventions has not
been good. They often impose ‘blueprint’ methods that ignore important local
issues. A critical gap exists between planning and successful implementation.
Approaches focus on what needs to be done, rather than on how to do it, and they
ignore the complex interactions among individuals, the state and service providers –
as well as their limited capacity to translate plans into practice.

If poor rural people are not to be the losers again in the struggle for declining water resources, a new, pro-poor water management strategy is needed. It must focus more on how to do it, while still addressing what to do, where and with whom. If interventions are to succeed, the new strategy must recognize the changing nature of rural livelihoods and its impact on poverty – a ‘new rurality’ – and the complexity of socio-economic systems, particularly where governance and local and national institutions are weak.
This, in essence, was the objective of the project for Learning and Knowledge on Innovations in Water and Rural Poverty (InnoWat). The InnoWat team has created the kit InnoWat: Water, innovations, learning and rural livelihoods with the expectation that it will be useful to many country programme managers (CPMs) and will enhance organizational/institutional comparative advantage in rural poverty alleviation and water issues. The present text synthesizes two approach papers that together provide the rationale for a new, pro-poor approach to water issues. A series of topic, fact and tool sheets and case studies supports the papers.
I will continuously participate on this forum on many of these issue-based discussion that affect farming rural communities in Uganda and Africa. I also have videos show casing some of these approaches with broad social impact but I am finding it hard to upload them online for public access.

Thanks for the invitation Henry-I have interacted Mr.Kuteesa and his innovation in water harvesting is awesome!


The water-harvesting innovations of Kuteesa Wilberforce, Mukono
Every drop of rainwater is valuable in dry areas. But it is dry areas where a lot of soil erosion occurs and the water is lost. This happens more on steeper slopes. It is to address this problem that Mr Kuteesa Wilberforce, now in his early thirties, has devoted his life. He has done this by developing many examples on his own small farm,in Kiyunga Mukono as well as training many others in his methods.

The Kuteesa family lives on a 22 acre plot in Kiyunga Mukono,Uganda. While this area is in the rain catchment area, access to water for home consumption remains a problem. Being an area for famous for animal rearing, water harvesting remains a vital concept for adoption.

Soils
Kuteesa's land is located on a gentle slope of a hill and faces north-north-east. At the top of the hill is a bare rock outcrop, immediately below which is the homestead. The thin, grey soils are predominantly sand. Further down the slope through the yard and across the road into the cropping area, the soils become deeper, darker and less stony. Their clay content increases, especially towards the wetland in the north of the property. The wetland experiences seasonal waterlogging and is the source of a stream.

The ruware
One of the most important resources (one that many would see as a disadvantage) is the large granite dome, or ruware, above the plot. In an uncontrolled situation this rock could cause severe erosion by channelling a lot of water onto the land below it where the Phiri family live and farm. Instead, however, the rock provides the main source of water for the trees, crops and household.

Tiers of stonewall terraces catch and direct the flow of water so that it can sink into the soil and replenish the underground store. The terraces trap grass seeds and create swathes of protective vegetation. Silt traps ensure that the terraces do not get choked with sand.

Most of the water is then channelled into a seasonal unsealed reservoir to encourage efficient infiltration of water into the soil rather than storing it on the surface. Some of the water can be siphoned into a storage tank made from bricks and plaster. Phiri knows that if a season is good enough to fill the reservoir three times then it will have sunk enough water underground to last for two years. Harvesting water at the top of the slope recharges the groundwater so that crops, trees and natural vegetation will have moisture available to them in the soil.



Around the homestead
Below the ruware is the yard where the family lives. The terrain is quite steep, and it is extensively terraced with strong, stone structures built along the contours. The family grows a wide variety of fruits and vegetables, and keeps chickens, ducks and turkeys. The many trees around the homestead thrive on the water harvested higher up, which moves slowly downslope underground.

Some of the water harvested from the ruware can be stored in a tank made from bricks and plaster.

The road
Between the homestead garden and the cropping area is a dust road. Kuteesa has seen the need to control the runoff from this surface and take advantage of it by channelling the water and allowing it to seep into the soil above the fields. He has dug large pits into the soil at the side of the road. Around these pits the indigenous vegetation has visibly benefited. Thick shrubs and small trees are growing, and the grass is dense.

Three wells in the cropping area are fed by the water that is harvested higher up. A network of irrigation pipes and ditches supplies crops with extra water during drought. Some vegetable gardens and a nursery are located close to two of the wells to take advantage of the extra water.

The wetland
In the north of the farm and at the lowest part is a natural wetland that Kuteesa has protected and harnessed for crop cultivation and water storage. He has dug two ponds there. The larger is higher up the slope and contains fish. This overflows into the smaller pond downhill. Reeds, sugarcane, bananas, Kikuyu and elephant grass are planted densely on the banks of the ponds to hold the soil. Kuteesa encourages all farmers he meets to grow reeds. They conserve the soil and are a valuable cash crop, as they are used in basket-weaving. Phiri gives free banana seedlings to the projects that he is involved with.

While he has a diesel motor-pump he advocates for more appropriate technologies that are affordable. He started from a rope-and-washer pump and a tyre pump in the early years of his concept. Water from these seasonal ponds are used for irrigation via the ditches and pipes.

Benefits
Kuteesa farm has a variety of crops, including his forest of eucalyptus for the carbon credit project. He uses his harvested water for his poutry farm and for domestic consumption in dry periods. Wilberforce is able to produce something all year round: crops in the rainy season, vegetables in the dry season, and bananas all year. The water harvested, conserved and used has a great value for food security and income. Nevertheless, Phiri feels he could make even more use of the water he harvests, for example by digging more ponds.

South Africa's Mbeki & Zimbabwe's Mugabe: Pointers to the dynamics of policy contradictions!

The African National Congress's decision to sack President Thabo Mbeki was described by some South African commentators as "regicide". Certainly it was unprecedented in South African history that a head of state is dismissed in that way. Nor is the ANC the kind of organisation that goes in for this humiliation of its leaders. So why did it happen? Fine, the immediate cause was Mr Mbeki's ongoing feud with his former deputy, the ANC party leader the populist Jacob Zuma. But this was not just a personal vendetta between two men. Behind these events lay two major factors: one political, one personal. Fight with the left Thabo Mbeki, although a former member of the South African Communist Party, had used conventional economic policies to drive the country's development agenda.Tight monetary and budgetary targets had been set and met. The result had been a period of unprecedented economic growth, reaching 5% a year in recent years. In June 1996 Finance Minister Trevor Manuel introduced a neo-liberal economic strategy known as Growth, Employment and Redistribution (Gear). This included commitments to open markets, privatisation and a favourable investment climate. The ANC is in a formal alliance with two groups on the left, the Communists and the trade union movement, Cosatu. Both were fiercely critical of the strategy and argued that they had been excluded from its development and implementation. In the report to the Communist Party Congress in July 1998 the Central Committee spelled out their objections to Gear in great detail.This concluded: "We remain convinced that Gear is the wrong policy. It was wrong in the process that developed it, it is wrong in its overall strategic conception, and it is wrong in much of its detail. "At the end of the day, we cannot allow our entire transformation struggle to be held hostage by conservative approaches to the budget deficit." In May,2008 Blade Nzimande, General Secretary of the Communist Party wrote: "Despite the many modest gains that our own democracy has made since the 1994 democratic breakthrough, our own self-imposed structural adjustment programme, Gear, failed to make a dent in unemployment (unemployment actually increased dramatically between 1996 and 2006), and eroded the capacity to build a developmental state." These criticisms are not just held by the Communist Party, they are a reflection of the unease on the left as a whole at the policies that Thabo Mbeki adopted. Anger at the president's strategy to tackle the problems of unemployment, in particular, contributed to his downfall. Victims unite All politicians make enemies. That is the nature of the game. But President Mbeki has made more than most. One example should suffice to illustrate the problem. In April 2001 the country's national daily, the Star, had a headline that read "Mbeki plot rocks ANC". President Mbeki had sent his minister of safety and security to accuse three leading members of the party of plotting to oust him. The accused - former ANC secretary-general, Cyril Ramaphosa and two former provincial premiers, Tokyo Sexwale and Mathews Phosa ­- were among the party's most respected figures. All three were men who had driven to seek their fortunes in business after being marginalised by Mr Mbeki. To this day there is no clear explanation of why these extraordinary charges were made. Nelson Mandela himself emerged from retirement to say that he held all three in "high esteem". The Mail and Guardian newspaper commented at the time that it was a strategy worth of Joseph Stalin and said: "Many observers have dismissed the plot theories as a strategy to warn off potential competitors with ambitions to challenge Mbeki's leadership." No evidence was ever led against them, no charges were laid and the matter was swept under the carpet. However, it was certainly not forgotten. Today Mathew Phosa is the ANC Treasurer General, one of the top party posts. Cyril Ramaphosa and Tokyo Sexwale are members of the National Executive. Their names, along with those of Zwelinzima Vavi, leader of the trade unions in Cosatu and Blade Nzimande of the Communist Party, have been cited in the South African press as among those who wielded the knife against Thabo Mbeki.

Does democracy have a face in the differences to Zimbabwe's power structure that keeps Mugabe strongly in charge? South Africa faces the same structural challenges on land as Zimbabwe. Mbeki's quiet diplomacy on Zimabwe coupled with thi ANC internal revolt from the Zuma camp, a non-compromising western politicoburo against Mugabe exposed Mbeki. While Mugabe's land distribution policy re-evented him among the peasant Zimbabweans in the immediate and short term, Mbeki's policies alienated his ANC support due to over-expecation.Land ownership in South Africa remains a hot political issue. Condemning Mugabe woould have accelerated Mbeki's fall due to the organizational strength of ANC despite the political capital that he would have gannered from the US,Australia, Newsland & Britain. As it turns out, Mbeki's time for the curtain to fall was up.

Economic growth does not solve a poor man’s woes!


UGANDA has registered numerous successes in building her economy. The economy is currently “growing at an astronomical rate” of 8.9% per annum and this is one of the highest rates of growth in the world. However, the country’s economy boasts of the dominant 68% of the population solely engaged in a hand-to-mouth production! By implication, there is poverty amidst this highly acclaimed progress. Uganda has been ambitiously pursuing policies for achieving economic growth over the last 20 years. Some of these policies include curbing inflation that comprise; reduction in liquidity, practising fiscal discipline through reduced public expenditure in health and education; attracting foreign investors and enhancing export performance and controlling the capital inflows, among others. Uganda is experiencing an inflation rate at 13.7% (Bank of Uganda, July 2008) and this is attributed to exogenous shocks especially increases in prices of energy particularly petroleum products. It has not been so uncommon for the ordinary people to complain about high commodity prices for basic goods like salt, soap, paraffin and especially food which have almost doubled. This fuss was not only Uganda’s experience but the world over. Paradoxically, the measurement of inflation is based on “underline” which technically means that there is no consideration of food prices, yet it is foodstuffs that experience most price volatility. It is more ironical that it is the low income earners that spend their largest proportion of their incomes on food. Apparently, the local person suffers the full brunt of price escalation. The implication is that the control of inflation could have been more rewarding if the measures addressed “headline” inflation i.e. addressing price escalation including foodstuffs. It should be noted that macro-economic growth does not benefit the ordinary poor especially in Africa where most economies are agrarian largely dominated by subsistence producers (hand-to-mouth). This means that these people are spectators in the market system since they basically have nothing to put on the market. But if the poor remain excluded from the mainstream economic growth, the well-off will pay more in social costs associated with increasing poverty and joblessness. The cost will manifest through high expenses on personal security and crime prevention.As Robert McNamara, the former president of the World Bank and American Secretary of Defence argued, “widespread poverty amidst islands of wealth is more dangerous to the latter.” So, if governments do not deal effectively with poverty, then, poverty will deal more destructively with governments. Recall the reasons for the emergence of the French revolution where the people could not afford to buy bread but Marie Antoinette, the celebrated arrogant and extravagant wife (Queen) of King Louis XVI sarcastically advised the poor and hungry French mobs to “eat cake if they cannot afford bread”. Maintaining a favourable balance of trade (whereby the country’s exports’ receipts are higher than imports’ invoices) is a very necessary aspect of macroe-conomic performance. This makes foreign investment needed and welcome. Nevertheless, it would be more prudent to provide incentives to foreign companies based on their sourcing of local content like employment of the local labour force; local raw materials; and helping domestic manufactures to become more competitive. There is need to review the economics of Washington Consensus which is premised on “Less state and more market”. The state must not only remain relevant but actually must be effective if it is to cause transformation of the economy. This is what Robert Wade of the London School of Economics calls “the need for the state to govern the market”. The argument here is that while the market provides environment for efficiency, there is a danger of creating exclusion of the poor from the fierce competition usually worsened by imperfect markets. If imperfect markets are left unabated, it can be a recipe for conflict and disintegration in extreme cases. Poverty reduction is part and parcel of economic growth. The argument that growth must be achieved before redistribution is a mirage. The trickle-down mechanism based on the assumption that economic growth (first economy) will filter through to the poor (second economy) does not hold water. This implies that if the growth strategy turns belly–up, poverty reduction will sink with it. This reminds one of the old adage that “the poor man’s walking stick is support for the rich”. What is really needed is the welfare net to soften the blow. There are a number of examples which show that relying solely on the market has not created efficiency. The British rail system was privatised but there are serious efficiency gaps in keeping time, collisions, etc. Similarly, there is evidence that economic growth in many countries has not trickled down to the poor. It is therefore apparent that governments need to provide social security for those waiting for windfalls of economic growth. But even if economic growth finally arrives, it is unlikely to narrow the gap between the rich and the poor. For example, South Africa is the continent’s most successful economy with a GDP, amounting to a third of all 48 sub-Saharan African economies combined. Paradoxically, it is the same economy that is encumbered with widespread dissatisfaction by the unemployed, increasing poverty and crime. I was recently in South Africa and I travelled in one of the domestic flights but I hardly saw any other black person on this flight! There were only whites and Indians—the top beneficiaries of Africa’s most successful economy. Where are the benefits of the highly romanticised growth in South Africa? Similarly, Peru has been one of the most successful countries in Latin America with a GDP growth of 9.2% per annum but with paradoxically high levels of poverty, vulnerability and a disgruntled population. The Peruvian people give little credit to President Allan Garsia for the strong economy just as former President Thabo Mbeki of South Africa has been thrown out of the presidency yet, he has presided over a vibrant economy. Coming back home, the Uganda government has claimed an economic growth of 8.9% per annum in the 2007/8 financial year. This is among the highest economic growths in the world but how many Ugandans can identify with this growth? Ultimately, what Ugandans require are education and skills development; employment creation; improved livelihoods, improved productivity, and increased welfare, rather than figures and macro-economic policies that have little meaning to an ordinary poor hungry person. Poor people understand their needs better than anyone else and government must take its lead from them not the other way round. The ordinary people should be allowed to voice their needs and government action be based on the needs assessment of the people but not what the government thinks the people need. The writing is clearly on the wall.

Banana wilt disease may impact on food basket


Mr Charles Kyomuhendo, a farmer in Mbarara, could fail to pay full fees for his children this academic term. The reason being that his source of income has been dealt a devastating blow by a natural calamity – the banana bacterial wilt.
“My entire life depends on the banana yields that I harvest and [sell to] cater for my family needs,” Kyomuhendo told Sunday Monitor in an interview last week.
The return of the banana bacteria wilt (BBW) three years after it was thought to have been defeated also has serious implications for a large part of the country as the region has been the food basket for the population located in central and western Uganda.

LIFELINE THREATENED: Improper disposal of banana stems exacerbates the spread of bacterial banana wilt. PHOTO BY JOSEPH MAZIGE
Like the current global financial crunch, the disease calls for immediate and concerted effort to stop it. Kyomuhendo is not alone. The disease has spread to almost all the districts of the south western region.
Ms Teo Kataratambi, a big banana farmer in Nyehanga parish, Nyakayojo Sub-county in Mbarara District, said the disease is threatening the livelihood of hundreds of people.
“The disease is real and its back,” Ms Kataratambi said. “I have about 15 acres of bananas and I have a number of casual workers who I pay on daily basis. Without the plantation, they and I will be out.”
In this sub-county alone the disease has affected the parishes of Nyarubungo, Rukindo, Katoojo and Kicwamba.Two years ago, the Food and Agriculture Organisation initiated farm field schools to help stop the spread of BBW.
She said some farmers fear to report the disease outbreak in their plantations for fear of being ordered to destroy them. This farmer, who produces over 300 bunches of bananas every month, said the disease spreads very fast. In neighbouring Ibanda District, the wilt has hit, and is ravaging five sub-counties.
According to the district National Agricultural Advisory Services’ (Naads) coordinator, Donat Rwaributwire, the disease has now spread to the sub-counties of Kichuzi, Bisheshe, Ishongororo, Kincheche and Nyamarebe.
The disease was last reported in Ibanda two years ago.He said all agricultural organisations including the Naads office have already embarked on a massive sensitisation campaign to prevent further spread of the disease.
“This was after the affected communities petitioned the district production department to urgently intervene which prompted our offices to take up the matter and save the situation,” the Naads boss said.
Farmers in the affected areas have been sensitised on the symptoms and how to dispose affected plants.
Farmers in Ibanda have already set up anti-BBW taskforces to enforce the by-laws enacted to control further spread.Some of the by-laws demand that diseased plants must be cut down, chopped and either buried or otherwise disposed of.
Also persons found tresspassing in other people’s plantations with cutting tools - that may have been used to chop affected plants - will be fined Shs5,000 per incidence per person.
“For any Banana plantation with male buds overdue for removal after set deadline will see its owner fined Shs500 per plant, diseased plants not removed by deadline; fine is Shs10,000 to Shs50,000 depending on number of diseased plants,” states one of the by-laws. The banana disease is now in the districts of Ntungamo, Isingiro, Kabale and Mbarara. It could spread even further.
Symptoms of BBW on affected plants include yellowing and drying of all leaves, starting with young ones; premature and random ripening of fruits which then develop spots in the mesocarp; drying and rotting of the male flower part and an almost instant yellow pus like liquid seen in the stems of suckers when cut.
The disease spreads with greater speed when the same cutting tool used without first heating is used indiscriminately in a given plantation.
Unfortunately, the disease is affecting banana plantations at a time when a banana processing factory was just being constructed in Bushenyi. Bushenyi has been hit particularly hard 21 out of its 29 sub-counties affected and this could have implications from intended processing/value addition for crop.
Sabastiane Tugume, a banana dealer in Bushenyi, likens the disease to the global financial melt down. Given the rate at which the disease is spreading.
In Nyabubare sub-county casual observation reveals that some farmers have already lost acres of banana plantations which had to cut down. This has brought the gloomy prospect of hunger closer.
Daniel Ruterahururu, LC1 chairman Itaaza cell in Nyabubare captures this situation quite well: “We are here confused, we do not have money to buy the drug [to fight the disease] and we don’t even know the drug to use because government has not come up to tell us (farmers) what could be the drug to apply,” he said in an interview, adding that district technocrats have held several meetings in the area with farmers but they have not provided them with any real solution.
Meanwhile, Bushenyi District agriculture officer, Ms Jenninah Tumushabe wants local leaders to be vigilant in monitoring the spread of BBW.
She said some farmers are stubbornly refusing to uproot affected plants while warning that those who continue deliberately refusing will be dealt with.
With the farmers like Cyril Owarwe in Nyarugote parish, Nyabubare saying they are at a loss as to what to because they have been disappointed several times, residents of Kampala should brace for higher prices as Bushenyi has been the major supplier of banana (matooke) to the city.Farm gate presently range between Shs4,000 and Shs8,000 depending on the size of a bunch.
Monday Rwanga, an officer in the district’s production sector, said they are now treating the matter as an ‘epidemic’.
“Some farmers confessed to having been overwhelmed because they remove the affected stems, bury them but the disease reappears and new ones get infected faster than before,” Rwanga added.
It is estimated that at least 10 people along the production-market line share the proceeds from one bunch of bananas transported to Kampala.
In the absence of the crop, many will be out of business starting with the person who weeds, the plantation owner, the (bicycle) transporter to the central banana market, those who levy the tax at the market and then those who load trucks. The others are the business person, truck owner, operators of lodges in which traders and transporters sleep, refilling stations.
“This is the one reason why the government should interest itself in fighting the disease,” Kataratambi said.

Paper on Africa's strategic policy challenges on poverty eradication through integration


Introduction:Africa is at a junction point in its quest to address the five significant areas of: Breaking the cycle of poverty, Conflicts & their resolution, Leadership and Governance, Socio-Economic Development and HIV/AIDS.The Principle challenge to Africans both with in and outside will always be the identification of Africa’s strategic position on the global priority list, develop an economic blue print that integrates Africa into the global economy through Trade and not entirely on AID and a continental consciousness that Africa is our motherland. Diasporians armed with their level of exposure, will need to understand the effect of the geo-political system driven by capitalism and appreciate that Africa will find no favors from the corporate world whose desire is for acquisition of natural resources, even by force if it comes to that, to oil their respective economies.Globalization is an Irreversible key epicenter in any intellectual dissection of Africa’s potential and the role young African Diasporians must play in order to increase the momentum of Africa’s road to sustainable development.Economic “globalization” is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through Trade and financial flows. The term sometimes also refers to the movement of people (Labor) and knowledge (technology) across international borders. Globalization involves the opening of economies (and thereby societies) to global market, as a result of present and the prevalent capitalist system. It was founded on such principles as deregulation, liberalization and privatization. Despite its benefits, with no safety nets, it has resulted in not only the economic displacement of peoples but more importantly, the obliteration of entire cultures and societies.Situational Analysis:Africa’s economic crisis began in the 1970s.African governments took advantage of readily available International loans but, in many cases, lacked the expertise or institutions to ensure they were used for priority development projects. Unfortunately, substantial portions of these loans found their way into the pockets of the corrupt, privileged members of society and unwarranted massive military spending as a result of the Cold war. By the end of the 1980s, most sub-Saharan countries were forced to devote between 40-82% of their earnings to redeem their foreign debt. Africa’s debt burden compared to its economic size is twice as large as that of any other region. 33 African Countries are classified as heavily indebted.Trade performance across the African continent varies greatly. Although Mauritius and Botswana have grown, most African Countries have been stagnant or have retarded since 1980. Among others factors, this is related to the colonial legacy and a concentration of exports in Agricultural commodities that have rapidly de-valued such as coffee. Economic globalization has also exposed African Countries to the rules of a global Trading system defined by wealthy nations. Devaluation of Agricultural commodities on the Global market results in reduction in general consumption, take children out of school, and reduce spending on healthcare. In Uganda, women, children and young people do suffer and the result is rural-urban migration in search for work.
Adjustment policies introduced by the IMF/World Bank strongly encouraged participating African Countries to adopt free trade policies. As a result, African economies are the most open in the world. Powerful corporate economies have taken advantage of this as they continue to protect theirs own markets. In 1990, the IMF classified 75% of African Countries as operating “restrictive” trade regimes, with none classified as “open” (referring to whether African markets to foreign products and investment). In 2002, the IMF refers to only 14% of African trade regimes as “restrictive”, with 43% now classified as “open”.In 1999, the organization for Economic Cooperation and Development (OECD) reported that Africa receives $21 per person in aid per year. By contrast, Oceania received $196 and Europe received $38. From 1991-1999, the percentage of total aid going Africa dropped from 37% to 26%. Despite the continuous flow of aid, Africa’s wide spread problems show little sign of lessening. It has become clear that aid despite its good intentions, is not the silver bullet to Africa’s social problems, partly because of the way its been used. Neither the local people, nor young people, have been significantly involved in the design, Implementation or evaluation of development programs and projects.In response to pressure from the IMF/World Bank, as well as the need to repay debts, major changes have occurred within the Agricultural industry. Small-scale farmers in Africa are now in competition with large commercial Estates. As a result, young farmers have moved off land as agriculture becomes less viable. These changes have led to a decline in crop varieties, and an increase in water use, food insecurity and commercial fertilizer.Children, youths and women in Africa are growing up in an environment where the quality and quantity of food is insecure, resulting in mal-nutrition and loss of life. The causes of Southern African food crisis are complex and vary from Country to Country. In different proportions they reflect a mixture of poverty and vulnerability, bad weather, poor governance, bad advice from donors and economic collapse. High rates of HIV/AIDS and other disease have further sapped the people’s ability to cope breeding conflicts in Africa. Donor driven policies of liberalizing African food productions have been especially controversial, with evidence that they have made it more difficult for Africans to grow more food or to afford to buy it, while in Zimbabwe drought and land reform policies have contributed to a collapse of food production.Economic colonialism in Africa has compounded the existing theft and exploitation of vast natural resources with inadequate environmental regulations, and the relative powerlessness of local communities when faced with foreign corporate interests.Factors associated with HIV infection include a lack of adequate healthcare, low levels of education, poor living conditions, and limited access to basic services, rapid urbanization, unemployment and poverty. In a sense, poverty is exacerbating AIDS, and AIDS is exacerbating poverty. The number of people infected with HIV/AIDS has reached an estimated 36 million. Approximately 95% live in developing nations and 70% in Sub-Saharan Africa alone. The global HIV/AIDS prevalence rate was 1.07% in 2000; while for sub-saharan Africa, the average was 8.57%.
Effects of Globalization:
We all recognize that the effects of globalization have been uneven, especially for Africa relative to Asia & Europe. Indeed, some argue that globalization has worsened inequality in the world, eroding the incomes of the poor and increasing their vulnerability. Africans today feel more marginalized by globalization and excluded from international trade and financial flows. They argue that the gap between the richest and poorest countries has widened in the last four decades as the continent has fallen further and further behind the rest of the world. Western tariffs discriminate against the local processing of commodities such as Cocoa, coffee and cotton. African goods sold in the OECD countries face tariffs roughly ten times higher than those levied on goods traded with the OECD. Ineffective policy prescriptions from the IMF/World Bank bear little reality to local conditions and the needs on the ground. Africans argue that the continent was in fact, better off before the reforms. They complain about the poor response to the HIV/AIDS pandemic and other diseases and inadequate and effective financial support from the donor community.Net private direct investment to Sub-Saharan Africa was only $3.9 billions in 2002, most of it directed to exploit the continent’s natural resources, despite the often-stated fact that return on FDI in Africa is higher than in any other region. As many watch the progress of other countries through vastly improved international communication links, Africans have become increasingly bitter and disappointed with their governments and with the world at large. Many respond by desperately seeking to leave the continent to find better lives in those Countries that have benefited most from globalization, creating a new socio-political challenges, not for Africa alone, but the world at large.The above analysis gives a desperate but partly the real picture on the ground reflecting Africa as continent suffering from mass economic and psychological depression. The thrust for people to migrate to Europe, America and Japan is as a result of the poor economic conditions imposed on the continent by the global system. The economic stress on the continent as a result of the above has caused Africa being characterized as a conflict prone continent whose security, given the HIV/AIDS epidemic and poor economy, losing any guarantees. The effect of the causes of immigration of Africans to Europe still standing will always keep diasporians away from home, keep them fragmented even in Europe or America due to an artificially configured corporate system that cares much less in addressing the huge brain drain. In other words, the current global order has not prioritized in addressing Africa’s development challenges and not rightly if has attempted to through it’s IMF/World Bank AID machinery.Governance in Africa:
This sadly, is what one hears most in the debates at home. These reactions, however, over look some significant positive effects of globalization that are shaping the future Africa. The first is good governance. One of the most durable effects of globalization has been the growing recognition across Africa that good governance at all levels is the essential starting point to economic progress. Globalization has helped Africans better appreciate the importance of their democratic rights and to aspire to proper functioning democratic systems that respect human rights and the rule of law. There is therefore a strong push to develop political systems that promote representative and honest governments. Governance in Africa is slowly improving and decentralized government taking hold. For example, no incumbent African leader ever lost an election until 1982. In the 1990’s 12 African leaders were voted out of office and 11 more since then. Countries like Nigeria, South Africa, Senegal and Ghana are showing the benefit of democratic governance, rule of law and freedom of expression. Press freedom is growing, along with over all level of political activity in many Countries. While many problems remain, established standards of good governance arising from globalization are progressively taking hold in Africa.With this has come greater economic liberalization. Governments in Africa are taking steps to privatize and de-regulate their economies to attract more private capital. The Ghana stock market for example, was the best performing stock market in the world in 2003 and continues to record strong gains along side the Nigerian stock market. The financial markets in Africa are progressively being deregulated and strengthened, the telecommunication and Information technology sectors are growing rapidly, new investment and mining codes are being passed into law to attract international capital, governments are implementing privatization programmes in the transportation and energy sector and legal and institutional frameworks for business are being strengthened. While not obvious to many, these developments have gone unnoticed to the international investors. Slowly but progressively, Africa is being looked at more closely for the investment opportunities that it offers in financial services, agriculture, outsourcing, telecommunication and natural resources. In response to these trends, the informal economy in many countries is also growing rapidly to capture the large reservoir of entrepreneurship and innovation that exists in this sector.Education in Africa:
Another positive effect of globalization has been its impact on education. African governments increasingly recognize that Countries, which have benefited from globalization, have significantly invested in education. While most countries still lack the resources to establish a robust educational Infrastructure there is greater awareness of the role that education must play for the future and of the standards that must be achieved. Although still inaccessible to most, the Internet and other advances in information technology have opened up opportunities to improve the quality and content of educational programs. The effect has been a growing shift away from a reliance on the state to provide education, towards private schools and colleges. Governments are paying greater attention to education standards and enrollment. Gambia and Uganda for example, have registered 20% growth in primary school completion rate in the last decade alone.Migration in Africa:One important effect of the movement of people and ideas in a globalized world has been the growing number of Africans seeking educational opportunities outside the continent. This has been happening over several years and I believe that we are starting to see a trend where such educated Africans are increasingly turning their attention to the opportunities at home. Examining the number of financial and Information Technology companies being established back home and the trend becomes obvious. Furthermore, this “Diaspora effect” is making a major contribution to the economies of African Countries. Remittances to Africa from the Diaspora currently far exceed the levels of over-seas development assistance and have the potential to provide significant amount of capital to stimulate the growth of industries such as technology and real estate. The efforts to promote increased regional Integration is another important step towards greater participation in global markets by African Countries who recognize the pressing need to pool their resources and markets to create the scale and opportunities that can attract International capital and investment. African leaders have signaled their commitment to this process with the launching of NEPAD, which has as one its goals the need to “ halt the marginalization of Africa in the Globalization process”.Against this background, one must ask the complex question: Why has Africa been marginalized? The theories are many, but the answers can help fashion initiatives and policies and policies to correct the errors of the past. While one can start from the history of colonialism, which created artificial, weak and unprepared nation states from the time of independence, and from the effects of the cold war, history cannot today justify Africa’s lack of progress in the last few decades. The prime culprit in my view is poor governments and the corporate economies. Africa has not been blessed with good governments and effective leadership to realize their responsibility in addressing, in one voice, the challenges of the imbalanced global trading system imposed on the world by the corporate centers, America, Britain, France, Germany, Japan, Italy and all their allies. Political systems and the quality of public service through which policies are implemented remain weak due to a small Human Resource Base. Economic governance, characterized by measures to combat corruption, promote better-functioning bureaucracies and better regulation has been poor. The delivery of education and health services has fallen well short of international standards. Africa’s debt burden has made it difficult for policy makers to address these weaknesses and to implement forward-looking economic policies. Furthermore, the current international trade architecture, focused in Africa primarily on agricultural products, makes it extremely difficult for Africa to grow through increased trade.Achieving sustainable economic growth and poverty alleviation and the improving the quality of life through private and public sector Initiatives requires an Integrated effort of both Africans at home and brothers and sisters abroad. The mechanism and measures required helping African Countries take the right steps to benefit stem from the positive aspects of globalization, while minimizing the negatives and ending the continent’s marginalization.My observation is that the current development consensus for Africa is weak in a number of important areas. First, it does not give enough attention to the administrative and Institutional capacity of governments in Africa to develop and implement sound reforms and initiatives. Simply put, most governments are administratively and technically too weak to manage their Countries. Substantial resources are therefore required to upgrade the caliber of people in government and to attract the best minds back home. This is ironic when one considers the impressive resources that are increasingly available to African countries from their own nationals now in the Diaspora. These resources are not harnessed and that is a priority, governments need to be more efficient. Today officials are overwhelmed and bogged down with too many issues from too many constituencies, including the International donor community and the multilateral institutions. They are paralyzed into inaction and have little time to develop strategies to improve their countries, much less to actually manage the programs that they sign up to.Secondly, inadequate attention is given to the development of strong legal, financial and regulatory systems that underpin efficient governments, especially at the local level. Thus existing systems are abused through inefficiency, mismanagement and corruption. Most countries simply lack the capacity to upgrade the systems. As an example, despite the stellar performance of the Ghana stock exchange, it still lacks the resources to automate its operations and upgrade its rules and regulations to meet current best practices so that it can play a more meaningful role in attracting private sector capital.Thirdly, the approach to developing high quality educational systems in most African Countries is failing primarily due to funding, which has not kept pace with population growth. Educational reforms is proving too complex for many governments, with the resultants lack of proper basic, technical and vocational educational level training, which in turn, produces a workforce that is ill prepared to the demands and challenges of globalization.In summary the agenda and approach, to Africa’s development dilemma from the eye of a Ugandan is therefore superficial in the areas that count most. Government simply cannot implement all the programs and projects from development partners, no matter how well meaning. On their own, most of these lack the necessary depth, scale and sustainability to make a difference and because implementation is often a problem, the response has been to send down armies of consultants from the donor countries to implement them, in the end absorbing substantial portions of the available funding.The agendas therefore need to be pared down and concentrated more on institution building, attracting high caliber talent, strengthening education and building an effective financial and regulatory infrastructure. When progress is made in these areas, I believe Africans on their own can develop the strategies that will allow them to achieve sustainable growth and progress in today’s globalized world.The Initial thrust in achieving sustainable development, the diasporians as well as their brethrens back home need to address the following from a strategic perspective:Support the best of existing work on Africa, in particular the New Partnership for Africa’s Development (NEPAD) and the African Union, and help ensure this work achieves it’s goals. The African leadership has made some progress and the African people have realized the need for good governance and aspire to achieve that end. Programs have been developed which indicate an awareness of the direction that must be taken to engage the international community on Africa’s challenges. Programs such as NEPAD must be supported to help deliver implementation of existing International commitments towards Africa.Offer a fresh and positive perspective for Africa and its diverse culture in the 21st century, which challenges unfair perceptions and helps deliver changes; andGenerate new ideas and actions for a strong and prosperous Africa, using the 2005 British Presidency of the G8 and the EU as a platform. The British leadership seems interested in playing a more constructive engagement of Africa’s challenges, involving diasporians and the African elite class to give her a forward thrust in tackling her problems.Understand and help fulfill African aspirations for the future by listening to AfricansDiasporians through Institutional, organizational or Individualistic efforts must focus on six areas pragmatically: Economy & trade, natural resources, governance, conflict and security, human development, and culture and participation.Tackling the media Image:
Conceptually, diasporians just like their brothers back home need to “wrestle Africa’s” media image from the mainstream media. Mainstream media such as BBC do not produce programs specifically for the African communities. International media houses have specialized in non-balanced reporting leaving success stories, events or positive aspects such as climate, culture and tourism potential unreported internationally. The formation of a strong media agency such as Al-jazeera would help highlight the other side as a counter-weight as a damage control measure.Dual or Multiple Citizenship:
Dual or multiple-citizenship must be accepted as another aspect globalization and diasporians must take it on board so that an individual can be a citizen of one Country and linked to others. This would break barriers created by visa restrictions and fully improve investments inflows towards Africa.
Networking & Improving Contacts:
Diasporians through institutional frame-works and networks should improve their diplomatic footwork in influencing International Institutions and host governments in order to isolate despotic governments back home in Africa. Europeans banks that have been safe havens for ill-gotten money should be legally restricted through legislation in the European Parliament and the United Nations. This requires vigilance from diasporians, civil society and cooperation from western governments. International legal restriction should not be an issue only when Al-quaeda hits America and kills 3000 Americans but also when African kleptocrats connive, rape and defraud their people in cooperation with International Banks with the help of western governments, who by the way lend African governments the money.Diasporians need to, organize and mobilize the African community and co-ordinate activities by developing networks, databases of information about existing activities, develop a platform for engaging the International community by highlighting Africa’s development challenges. This will be possible when a think tank is put in place as a process to set up the lobby group. The lobby group should be charged with a double role of engaging the International community as well as Africa governments specifically as a communication link in addition to others already in existence. The lobby group would help in networking Africans abroad to invest back home through joint ventures not just personal initiatives. It would help promote links with each other and Africa. Help hold in-depth discussion on issues and set measurable and achievable goals. Help the formation of networks at professional level where professional can influence mechanisms and seek change in securing access to capital. The lobby group would champion and re-enforce already existing demands for Africa achieving a more balanced global trading system and improve the media image of Africa in the International community.Diasporians as economic players in their host countries will need to identify their power as consumers and producers, taxpayers to promote Africa ideas, goods and services through formation of an African Business forum both in Europe and America as a tool to achieve leverage in Trade negotiations at international and national level.Human Resource Development and Health:
Discussions on skill transference and training should also be a focal point where retired civil servant diasporians can be given incentives to come back to Africa to re-enforce the effort to build human resource capacity as an object to build institutional capacity of government and civil society organizations. Western government through discussions in international diplomatic engagements with diasporians can finance this effort as the UNDP has initiated so far, though with minimal impact and desirous of more momentum.Overtime, remittances from individuals for both individual consumption and investment in Africa has increased and seems to be the highest foreign exchange earner beating the traditional exports like Coffee in the case of Uganda. There is need for secure financial Institutions through which monies can be remitted back to Africa for investment. Investment in vocational education as a tool to gate way young Africans into the global job market is also important.There is need to prioritize in social service delivery in particular education and health. African governments with the support of the private sectors can get a boost from diasporians as cores investors, technical advisors in the areas of technical education and health. Africa needs a health population to produce and this form it’s position in the near future as a strategic investment area since Asia, Europe and America are reaching investment equilibrium. Africa still in it’s economic virginity needs to strategically to invest in it’s human resource through education and health care service delivery to become tomorrow’s investment destinations.
Develop & Emphasize Local models:
Alternative models proposed aimed at Africa obtaining sustainable development are all based on external models and proposed without looking at African models and solutions. World Bank/IMF development policies aimed at integrating Africa into the Global Market have had both positive and negative impact. The negative impacts have been due to the object of unleashing capitalism on small economies without any element of a welfare state or alternative safety nets in Africa. The results have not been good and most Africans resent any enthusiasm in Economic liberalization thus unstable governments. In other words, African elites and the leadership must be constructivelyengaged in policy development, Implementation and evaluation just like the intended beneficiaries of projects.Regional Integration & Governance:
African countries will need to deepen their economic cooperation through regional integration; removal of artificial restrictions on the movement of African peoples and a thorough plan to create regional commerce will work through abolition of border tariffs and visa restrictions on the movement of African peoples. There is need to encourage the democratization and decentralization of the economic planning process. Governments should be encouraged to decentralize societal management. Local governments should have a role in the whole government economic planning process before the centers go ahead make budgetary processes. It must be an involving and consultative process for the beneficiaries to feel the total ownership of government programs, which eventually reduce the total cost of ownership.On matters of governance, Africa will have to strengthen checks and balances across all sectors and develop effectives monitoring mechanisms. Civil society and community groups, which form the core voice of the very poor, will require more direct support. There should be need and commitment to enforce International gender equity conventions to ensure women’s active representation and participation in governance structures. An effort to focus on long term strategic planning by governments and institutions, strengthen the rule of law, protect civil and political rights.Proactive Involvement in international Demonstrations:
There have been efforts aimed at exposing the effects of globalization through civil society campaigns like Oxfam Britain. Africa has a problem of the debt burden, which requires a comprehensive write-off. Africa too has little bargaining power at the WTO, which relegates it from global trade negotiations leaving discussions solely to the benefit of multi-nationals. Diasporians have not equitably played a major role in identifying the glaring impact the debt burden has played at decelerating the momentum for growth and development in Africa. There is need to mobilize the community of African diasporians to address this issue consistently in international forums as one of the hindrances to development in additions to trade imbalances.Core Investments in Energy, Education, Transport & Communication:
In partnership with home/regional governments & the donor community, disaporians must attract core capital investments in regional, continental transport, energy and communication infrastructure in addition to strengthening the financial sector through both investments and stimulating legislations that create a good climate for investment.Africa and Uganda in particular has a small skilled technical human resource base, which demands that Human resource development must be a priority for all development efforts. There is need to strengthen local languages through education and other initiatives to promote trade and integration. There is need to invest more in education by prioritizing our budgeting process, shifting resources away from military spending to social development efforts in Africa as a whole. There is every reason to invest more resources into vocational skilled training for young Africans as a tool of integrating them into the global system. Support more HIV/AIDS education and prevention initiatives. This will help mitigate the impact on Africa’s human resources and reduce HIV/AIDS impact on Africa’s strategic security and economic concerns. Encourage and invest more resources in to Universal Primary Education and life long learning as a tool of empowerment through grants, scholarships and infrastructural investment in education.Integrating rural Africans:
There is need to support small-scale credit systems for local small enterprises stimulation in rural communities. Through micro-finance Institutions, re-invention of cooperative societies for small agricultural farmers will help integrate agricultural communities into the financial sector. Diasporians in collaboration with the small elite class in Uganda will have to assume the role of an intellectual think tank that will guide government develop policies that will have an economic trickle down effect and in the interest of their Countries. The need to pay attention of local specialized knowledge cannot be under-estimated in this approach. This will help bridge the gap between the highly technically skilled African from the corporate world and the local artisans and specialists of the local conditions on ground.Land for Investments:Africa still faces conflicts caused by a number of factors and land till, strong legal instruments are developed will remain one of the precursors of overt and latent conflicts. Land for investments will be of great necessity since it’s a factor of production. Strengthening of ownership of land with legal provisions for user rights and ownership will help create the necessary conditions for investments in Africa.
Natural Resources Exploitation:
The elite that form the leadership in Africa will have to develop a mechanism for effective and efficient exploitation of natural resources for the benefit of local people. Local people should own natural resources and some profits ploughed back into social service delivery to the local communities. As exemplified by the Oil Delta region conflict in Nigeria-the conflict was due to the resentment by the local people that they were not benefiting from the natural resources from their land. Companies should be encouraged through legal instruments to make social audits of investments outcomes, enforce environmental protection laws in order to remedy negative consequences of natural resource exploitation. Governments should stimulate investments in renewable energy by giving incentives in research. Infrastructural growth to facilitate natural resource exploitation should be a core strategic investment effort for African governments, the donor community and the diasporians. The promotion of corporate social responsibility, investment in value addition of agricultural products, access to international markets and the demand for accountability and transparency from multinational corporations will be a conscious effort by the African people and their friends to harness their resources equitably and sustainably for development.
Diasporians with Africa’s Diplomatic Corps:
Diasporians will have to engage Africa’s diplomatic corps in the corporate world to play a more constructive role in improving the image of Africa and discuss with them how governments back home can help create incentives for diasporians ploughing money back home for core investments. They will need to support technically institutions in Africa through capacity building. Support and promote African role models and achievers. They will need to examine the effect of African emigration on Africa’s development. The Diaspora will have to lobby western governments to establish an African community development chest to assist individuals and groups, particularly through not exclusively the African Diaspora, who wish to contribute to community development in Africa. The lobby groups in a network will have to lobby and pressurize western governments to adapt immigration and asylum policies to alleviate the problem faced by individuals and families from countries of conflict and open up more avenues for migration for the purpose of economic activities.
Culture & Participation and Conflicts resolution:
Cultural diversity and preservation for the benefit of the African community will be another important aspect. Promotion of awareness of African heritage and highlighting the return of the African treasures and artifacts and protection through copy rights will go along way to reposition Africa into the World as an investment desitination. Education and youth empowerment through culture and the search for more positive space in the media on Africa will help in boosting tourism and in turn bring in foreign exchange. Encourage student exchange with in African and between Africa and the Diaspora through sponsorship. Promote role models of Africans as achievers and mentors and address the need to modernize African culture where there is need. With a reduction in economic stress, investment in-flows improving and production going back to normal Africa will experience fewer conflicts.
Bibliography:Jacque-Chai Chomthongdi, “The IMF’s Asian Legacy,” In Praque 2000:Why we need to Decommission the IMF & The World Bank“Zoellick says FTA candidates must support US foreign Policy” Inside US Trade, May 16 2003. This article summarizes a May 8 speech by Zoellick.George Soros, “America’s Role in the World,” Speech at the Paul H.Nitze School of Advanced International Studies, Washington, DC, March 7, 2003.Frances Fitzgerald, Fire in the Lake (New York:Random House,1973)Join Africa’s Brain Drain,Or Rot at home, East African Publication

Government must be more progressive to support agro-processing


Many times Ugandans have humbly asked government to remain frugal in public expenditure? The media and civil society have advised government against public wastage. While government has a spokesperson, the practice to communicate back to the public has been from the usual suspects albeit unconvincingly. My opinion today is premised on the cardinal principle that public accountability is an obligation of leadership and cannot be dismissed as mere irritation from oppositionists. I have watched His Excellence the President making passionate appeals to the International business community to come and invest in Uganda. The government has liberalized the economy spurring competition in particular sectors of the economy with the right national policy mix. The economic reforms have made basic goods available on the market and improved productivity. Peace has been ushered into most parts of the country except northern Uganda and Karamoja. In 22 years of his uninterrupted leadership the balance sheet certainly needs very serious scrutiny if were to move to another level.While the President seems to know what strategic actions to take in improving the economy, his body language is very confusing. 80% of Ugandans are rural based and engaged in agriculture. Coffee which has remained Uganda’s principle export earner at the rate of 21% certainly needs public intervention as a cash crop. And yes, almost a year ago the government signed an agreement with Indian TATA firm to establish an instant coffee plant worth $20m in Jinja. The Indian firm has so far been cautious for some reasons unknown to the public thus decelerating the creation of 150 direct jobs thus impeding the trickle down effect. Our good government has also recently crafted in the Libyans for another plant in Namanve with a capital investment estimated at $25m. Mt.Elgon Coffee also plans to build a coffee roasting plant in Tororo for export to its subsidiary in Denmark. The combined investment of these three projects, if they are established at all, is estimated to add value to 20% of our national coffee produce bringing in a total of $2bn a year into the national economy and create almost 1200 jobs for Ugandans. While these ventures are very juicy in economic terms, the implementation has serious political disincentives just like many others that have disappeared in thin air. It is hard to comprehend why government has not initiated these projects on its own based on their well researched and documented potential in revamping the coffee sector. The TATA project meant for Jinja, a year since the agreement was signed has not taken off yet. The Libyans may also take their time to implement the Namanve project or walk away just like Nile AES power did on Bujagali and other “too-good-to-be” true investors. Remember these kind of projects have the potential to unsettle established actors in the coffee supply chain who are making a kill in the global coffee market at the disadvantage of my grand mother deep in Luwero. The potential for established corporations such as Nescafe to sabotage private investors in such ventures is so high that government cannot ignore economic or industrial espionage in these projects. Uganda being an agro-based economy rightly needs to invest in agro-processing and this seems to be a well understood concept by the political establishment. The question is why rely on the good will of private investors despite the public resources that are squandered on toy-projects with no visible trickledown effect in the economy? 22 years is a long time for one to assume this government has a strong vision on strategic public intervention in the economy like many other smart governments are doing around the world. A private investor whether from India or Europe will do his research before putting his money into this economy. He will look at the taxation regime, the state of the existing public infrastructure that will support his business, cost of establishing business, cost of labor and the entire policy framework. It is a known fact, while the president is begging investors to come and invest in the economy, civil and public servants are engaged in massive abuse of public resources with impunity. The government structure is simply an enormous political octopus eating away all the economic benefits. While the president is begging investors to come and fix his economy, he is approving public expenditures that are indefensible and shocking even to his long-time supporters. The purchase of a brand new luxury Gulf Stream 5 presidential jet at a cost of $45m comes at a time when parliament has just bought 4-wheel drive cars for legislators 98% who have failed to account for the Constituency Development Fund. $45m for the jet alone would put up the two plants in Jinja and Namanve and bring in the net worth we are looking for from private investors. The government could eventually partially privatize these corporations to the private sector to bring the much needed technical managerial resource in such corporations. The president needs to run the country in a more corporate way. Wikipedia defines corporate governance as the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. It also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large. Corporate governance tries to reduce or eliminate the principle-agent-problem. It is therefore not enough for the president to assume that over-loaded ($$$$) investors will just come here and dump money in the economy!!!!! As a corporate executive he will have to lead by example to build Uganda’s economic foundation for equitable development for the benefit of all stakeholders.

Financing business starts in Uganda


Every business from its commencement and through its development and growth will need finance. The problem often based by every businessman and woman is on deciding what type of finance is best suited to the development of his or her business, and who they should approach for finance. This article provides some generic advice on types of finance available and outlines the planning required before approaching any lending institution.googlea4d4458564b71066.htmlThe first issue to consider is whether the finance required. If indeed finance is required, consider what it will entail. Additional funding requires a commitment in terms of capital and interest payments. Embarking on this course of action must therefore be planned carefully. The business must be capable of sustaining any additional commitment to growth or expansion, and consideration will need to be given to effects on manpower, materials and space.The second issue is considering the various sources of finance. Before seeking outside finance, a business must consider whether it could improve its working capital from within. Particular attention should be given to stock and debtors to ensure that both are kept to a minimum. Consider how long it takes to bill customers and collect debts and look at ways to reduce this time.Assuming external funding is necessary, planning is essential in achieving success. A well drawn up business plan is essential to enable you set out clearly the nature of the project you want to finance and the timing of the required financing.A business plan is also key requirement for to any lending financial institution. Banks are unlikely to provide any financial assistance without a properly drawn up business plan. A well thought out and drawn business plan should include the objectives and aims of the business, the purpose of the required funding, the business ownership and history, management and responsibilities, products and market share, sales plan and strategy, the financial position of the business with detailed cash flow forecasts and past accounts. Business finance is available in many forms, but it is important to make sure that it is right for your business. The most common sources of business finance is bank overdrafts, medium to long term loans and mortgages, but rates of interest can vary considerably. Whatever form of finance is offered, the lender will always require some form of security. However the level of security sought may vary depending on a number of factors such as, the amounts required, the nature of the business, the risk exposure to the lender and the period for which finance is required. Other methods of finance that specifically relate to acquiring capital assets for the business include leasing assets, hire purchase or outright purchases. Each method of funding has its own tax advantages and disadvantages. Typical tax issues to consider when evaluating difference business financing options include – whether the finance arranging costs are tax deductible, whether the interest expense will be tax deductible, and whether they are any withholding tax implications which both parties need to be aware of. It is for this reason that every business should always consult their tax advisers before they commit to any business financing arrangements, so as to ensure that all tax implications of the proposed financing are fully considered and if necessary provided for in the loan agreements accordingly.

Uganda's agricultural sector reforms need strategic leadership


On the 2nd of December,2008 Monitor Publication, Mr.Moses Byaruhanga submitted his observations of the high level of India's agricultural mechanization and commercialization of the sector as a strategic engine for national development. While I entirely agree with his observations and the need to revamp and re-invigorate the agricultural sector in Uganda, my surprise was in his tone of presentation. He sounded like an information broker to the much patronized and derided Ugandan rural farmer, especially for a Special Presidential Advisor on Political Affairs. Like many government projects, The National Agricultural Advisory Services(NAADS) has often been found wanting in its delivery of services to the rural farmer causing the President to suspend the program in 2007 till it was "reviewed". Problem? Over politicization of government programs for tactical rather than strategic national goals by the political elite in Kampala. The President's apparent election slogan was "Bona Baggagawale" during the 2006 election. He promised access to low interest micro-credit for rural farmers and the urban poor similar to "Entandikwa" to invest in small enteprise development. It is from this camapign that SACCOS mushroomed around the country all waiting to tap into the Presidents committment to fight poverty head-on. It is from this pledge that Gen. Salim Saleh became the State Minister for Micro Finance. As usual this was but political manouvery in a country yearning for a radical political shift. Todate, the Micro Finance Minister is the most invisible face of the President's large cabinet. In the end, Ugandans have lost millions of shillings to shoddy organizations such as boda boda associations, Dutch International alias TEAM, COWI and many others as a state suffering from political inertia looks on. The effect has been loss of trust to a sector so important for an agro-based economy. Cooperatives are not a problem but the lack of necessary policy reforms, regulatory mechanisms and institutional oversight that is lacking in everything going on in Kampala. Cooperatives provide, through resource pooling access to market information, collective storage and technology adoption in value and commodity market chains. It would be interesting to know what Mr.Byaruhanga's brief was for that trip. Who funded this trip? What were the core objectives for the pilgrimage? That would help readers know whether Mr.Byaruhanga and his team have put down a blue-print to the National Planning Authority(NPA) as accountability for public funds for that trip to India. I would wish to know if there is any effort in the Ministry of Agriculture to facilitate farmers obtain and adopt appropriate technology through innovative policy reforms. Mr.Byaruhanga's observations are actually all over the internet. As a policy advisor to the President, it is prudent that he uses his influence to fast-track the establishment of a more effecient, effective and accountable goverment through technology adoption vertically and horizontally in public service as this will help facilitate information and knowledge sharing. This approach, for a political advisor, means him understanding the intricate requirements for the state at strategic level to be more progressive and reformist in orientation. It means developing a strategy to reform the structure of public administration to a small but effective, efficient and accountable structure of government. It calls for a radical approach in adoptiong smart-technologies, flattening of the decision making process as well as establishing policy reforms needed to implement the strategy.Mr.Byaruhanga, a key political player in President Museveni's government,mentions that it is his dream to have a tractor in each Sub-County. This has been a pipe dream for many political talkers in Kampala since 1986. Tractors are not a new invention anyway. They have been part of the cooperative movement since the 1960s till the collapse of the same movement with the advent of World Bank/IMF economic reforms that liberalized the agricultural sector. The drive for SACCOS in government political circles by default is admission by the NRM government that actually the cooperative movement was the right vehicle to emancipate the rural poor, majority of whom are farmers. Deregulation and markets were adopted with alot of excitement in return for donor aid to run government in 1987 resulting into the collapse of the cooperative movement and now the white elephant that formerly housed the Coffee Marketing Board(CMB)in Bugolobi and just recently the Agoa Tri Star factory. Coffee Marketing Board(CMB), Lint Marketing Board(LMB) and other parastatals were part of various agro-value chains and fed into the cooperative movement that brought synergy into the agricultural sector in the 1960s, 1970s and 1980s. Our Kenyan neighbours despite their gradual adoption of market reforms have preserved some of this cooperative movement infrastructure not mention a controlled privatization of public corporations. In France, 9 out of 10 farmers are members of agricultural co-operatives; co-operative banks handle 60% of the total deposits and 25% of all retailers in France are co-operatives. (Source: GNC Newsletter, No 348, June 2007). In Kenya, co-operatives are responsible for 45% of the GDP and 31% of national savings and deposits. They have 70% of the coffee market, 76% dairy, 90% pyrethrum, and 95% of cotton. These facilitate effeciency at every level of the value and commodity market chains. It is therefore of concern that Kampala does not seem to have a visible strategic plan with any sustainable broad social impact. Rather you see a sexy mentality from those supposed to public policy for good of country.I must submit Mr.Byaruhanga sounds awed by India strategic shift and seems helplessly hostage in a rough public policy management environment. And that is my only problem with the presentation from a Special Presidential Advisor.