Private Private SectorSector Provision Provision ofof

AgriculturalAgricultural ServicesServices

Insights from a Case Study in Two Districts

Anna Borkenhagen

University of Applied Sciences, Bremen/Germany

International Political Management Program

ObjectivesObjectives ofof thethe StudyStudy

Underlying question:

Appropriate role for Government in

facilitating private sector led

agricultural development ?

Goal:

Identify Challenges and Opportunities

for Private Sector Agribusiness

Enterprises !

Private Sector in UG 24.06.2010 Anna Borkenhagen

Case Study DetailsCase Study Details

Selected Districts: Kapchorwa &

Manafwa

Qualitative Interviews with

stakeholders along the value chain

Survey among 62 respondents (Agro

Input Dealers, Private Sector Traders,

Farmers)Private Sector in UG 24.06.2010 Anna Borkenhagen

ChallengesChallenges andand OpportunitiesOpportunities forfor

thethe Private Private SectorSectorChallenges

Access to Finance

Infrastructure

Transportation

Regulation Deficits

Distribution Deficits

Market Information System

Market Access

Opportunities

Largely LiberalizedMarkets

Favorable Legal Framework

Market Availability

◦ Coffee

◦ Maize

Private Sector in UG 24.06.2010 Anna Borkenhagen

Access Access toto FinanceFinance

Private Sector in UG 24.06.2010 Anna Borkenhagen

Bank account Kapchorwa Manafwa

Yes 26 18 44 (71%)

No 9 9 18 (29%)

Access to credit Kapchorwa Manafwa

Yes 26 17 43 ( 97,7%)

No 0 1 1 ( 2,3%)

SeveritySeverity ofof LoansLoans

Private Sector in UG 24.06.2010 Anna Borkenhagen

25,0%difficult

50,0% easy

25,0% somewhat easy/difficult

Severityofloans

ConditionsConditions needingneeding ImprovementImprovement

Private Sector in UG 24.06.2010 Anna Borkenhagen

Access to finance/loans Frequency Percent

Yes 51 82,30%

No 11 17,70%

infrastructure/transportation Frequency Percent

Yes 33 53,20%

No 29 46,80%

market availability Frequency Percent

Yes 24 38,70%

No 38 61,30%

Case Study Case Study FindingsFindings

Starting with market orientation = key

to agricultural development

With an assured market other

problems can be overcome

Kacofa - an instructive example

Private Sector in UG 24.06.2010 Anna Borkenhagen

KacofaKacofa –– an an instructiveinstructive ExampleExample

Private Sector in UG 24.06.2010 Anna Borkenhagen

KACOFA

• Kapchorwa Commercial Farmers Association

• founded 1999 by 27 farmers

• 3015 members today (20% of population)

• own extension network

WFPCentenar

y Bank

USAID

/LEAD

• 2000: 41 mill Ushs

• 2010: 230 mill Ushs

• branch in Kapchorwa

(2007)

• best buyer of Maize

• 5000 Mt via forward

contract

• built 2000 Mt WH• IDEA: best farm

practices

• increased productivity

(30 bags/hectare)

• market linkage

AcchievementsAcchievements ofof KacofaKacofa

Private Sector in UG 24.06.2010 Anna Borkenhagen

1

2

3

4

CO

UN

T

improvededucation improvedincome productionatbiggerquantity

Yes No

ConclusionConclusion

! Ensured output market opportunity can

be key to agricultural development as it

might assist to overcome other problems

?! Government has to provide a regulatory

framework to set minimum standards

Private Sector in UG 24.06.2010 Anna Borkenhagen

Discussion questionDiscussion question

The study showed that ensuring secure

output market opportunity can be key to

agricultural development.

◦ What can be done to make more / better use of

this mechanism?