Uganda 2012 Budget Speech by President Museveni

As you heard, the economy grew by 3.2% this 

Financial Year.   This is one of the lowest rates of 

growth in the last 25 years.   Inflation had also gone 

up to 30%.  It has now come down to 18% of all.  Food 

inflation has gone back to 8%.  As I have told you in all 

 2 

my previous speeches, this is due to a confluence of 

two sets of factors – the global problems on the one 

hand and our own mistakes within Uganda, on the 

other hand. 

The global problems are well known to those who 

watch Western media channels such as CNN, BBC, 

Aljazeera, etc., as well as those who watch the Russian 

Television channel – RT.   The economies in Europe 

and the USA are in trouble with failed banks, high 

level of indebtedness, high unemployment rates, etc.   

Consequently, domestic demand in the EU declined by 

4.2% (2009).   This has affected our exports to Europe.  

Demand for flowers, for instance, has declined by 

about 70%, demand for fish has declined by about 

40%. 

Nevertheless, the economy of Uganda is not just glued 

to the economies of Europe and the USA.  Fortunately, 

we have got our own internal and regional markets.  

Aggregate demand here in Uganda has not been as 

adversely affected.   

Uganda exported to the Region goods and services 

worth US$ 654 million in 2009/2010, US$ 873 million 

in 2010/2011 and US$ 1,170 million in 2011/2012.  

Therefore, demand in the region has not been as low 

as in Europe.  We could have performed better if it had 

not been due to the mistakes by some of our actors in 

respect of delaying some projects such as Bujagali, the 

sugar projects of Amuru and Lugazi, the beef project 

by the Egyptians, the Nakawa-Naguru housing 

projects, Palm oil projects in Buvuma, etc.    

It is this self-illusory arrogance and ignorance of 

various actors that is part of the problem.  It would 

help our long-suffering country and continent if all the 

actors were to realize that as far as the economy is 

concerned, there are two sovereign actors: the 

consumer (the one who buys a product or a service) 

 4 

and the investor.   All the other players, high sounding 

titles notwithstanding, are of no ultimate importance.   

If enough buyers (local and foreign) do not buy what 

you produce, that is the end of your business.   If an 

investor does not agree to put his or her money, skills 

and entrepreneurship in your country and goes 

somewhere else, that is the end of that effort.    

Ignorance, however, misleads many actors to think 

that Presidents, Ministers, Members of Parliament, 

bureaucrats, etc, are the most important actors as far 

as the economy is concerned.   This is dangerous self- 

deception.   You have seen Governments and systems 

collapse because one set of the two primary actors has 

malfunctioned - the consumers and the investors. 

With a country, owning natural resources, it gives it 

an importance provided those natural resources are of 

a unique and strategic nature and are to be found only 

in our country.  We have coffee, for example.   

  

However, coffee is not only in Uganda.  Therefore, 

international coffee-roasters are not bothered to come 

to Uganda.  They roast coffee from all over the world in 

other places.  We have to roast the coffee ourselves. 

This has not been easy because our people did not 

have capital, technical know how and entrepreneurial 

skills. 

This is what brings us to the issue of competitiveness 

of a country vis-à-vis other countries in terms of 

attracting investments and also winning markets.  You 

must treat investors well and also treat consumers 

well if you are to survive in the modern world.  You 

must ensure that investors have security, they have 

good infrastructure that will make their businesses 

profitable by lowering the costs of doing business in 

your country, they are not delayed by corrupt or self- 

important officials, etc.  This is where some actors 

have let down the people of Uganda by playing around 

with the two sovereign actors in the economy – the 

investor and the consumer.   

It is this failure, this arrogance, that has caused our 

economy to only grow at 3.2% this year.  Yes, the 

global economy is bad but our economy would have 

grown at a higher rate if it was not for this mistake.   

These actors also squander the contribution of Uganda 

Peoples Defence Forces (UPDF) and the people of 

Uganda in bringing about stability.  The peace we 

ushered in and the goodwill we have generated would 

have brought more development if all the actors were 

conscious of the two fundamental actors in a modern 

economy: the consumer and the investor; and if all of 

us were aware that our roles, high sounding titles not 

withstanding, is to search for, value and facilitate 

these two fundamental actors in a modern economy.  

With the correct handling of the two actors, then, you 

solve the problems of employment, widening the tax 

base, provision of goods and services, foreign exchange 

earnings, social services, etc. 

In spite of this obstruction, we have moved and we are 

now set to take off.  Through many struggles, Bujagali 

is now about to be completed.  We shall, for the first 

time since 2005, have no electricity deficit for, at least, 

the next two years.  This is an opportunity we are not 

going to miss again.  More mini-hydro stations will be 

built and they will generate 125 MW, we shall start 

using our crude oil to generate electricity, we shall 

build Isimba and start on Karuma.  We shall never get 

electricity shortage again.  

  

In my recent State of the Nation Address, I talked 

about the two categories (A and B) of roads that have 

been listed by the Ministry of Works to be worked on.  

We are determined to work on all the 19 roads under 

category A. 

With the full knowledge of the importance of the 

investors to the economy, I will reactivate the 

Presidential Economic Council (PEC) that will be 

meeting once every two months under my 

chairmanship or that of the Vice President, in case I 

am not present. 

Mr. Stephen Muyingo, my Senior Private Secretary in- 

charge of Economic Affairs, will be the Secretary to the 

Council.  The Chairman of the Uganda Manufacturers 

Association (UMA) and that of the Private Sector 

Foundation as well as a number of other Private Sector 

players will be members.  This is in order to eliminate 

once and for all the arrogance of the civil servants 

when they are designing policies.  They always ignore 

the views of the Private Sector, as I pointed out above; 

yet they are the prime movers of the economy.  

Officials, in many cases, act against the interests of 

our private sector.  I have been told, for instance, that 

somebody licensed the import of poultry meat.  Yet I 

have been promoting chicken production in the 

country.  What is the interest of such an official? 

PEC will harmonize such disharmonies.  The Minister 

of Finance touched on the issue of nucleus farmers.  

These will be helped to provide tractor hire services to 

their neighbours.  Also working with the private sector, 

we are going to ensure milling of maize within Uganda 

so that we export maize flour instead of exporting 

grains and, at the same time, produce poultry and 

animal feeds within the country.   

I have instructed the Minister of Finance to study the 

usefulness of giving tax incentives to manufacturers 

who locate their factories up-country. 

In conclusion, apart from the victory in the electricity 

field as well as the intensified battle in the sector of 

roads, the following measures will help to stimulate 

production and consumption: 

(i) providing seeds and seedlings to the farmers for 

the eleven selected crops; 

(ii) working with nucleus farmers to provide tractor 

hire services to farmers; 

(iii) working with the private sector to ensure that 

maize is milled within Uganda so as to add 

value to it and also produce animal feeds within 

the country; 

(iv) studying the possibility of giving tax incentives 

to factories that locate up-country; 

(v) raising the tax threshold to 235,000 shillings so 

as to stimulate savings and consumption; and 

(vi) integrating the private sector in policy 

formulation in the form of re-activating the 

Presidential Economic Council to which leaders 

of the Private Sector will belong. 

Remember that while under feudalism, Kings, Princes 

and Generals were the cardinal actors, in modern 

economies the cardinal actors are the consumers and 

the investors.  Governments are mere facilitators by 

providing peace, infrastructure and a conducive policy 

as well as regulatory framework. 

I thank you. 

AfDB Launches Initiative to Invest in Agribusiness in Africa

This initiative has the potential to catalyze unprecedented levels of investments into the agribusiness sector throughout the African continent


Press Release

ARUSHA, Tanzania, May 30, 2012/ -- The African Development Bank Group (AfDB) (http://www.afdb.org) launched today, at the AfDB Annual General Meetings, a Fund of Funds focused on agribusiness investments on the African continent. This transformative initiative will address growing food security concerns and unleash the largely untapped potential of the African agriculture and agribusiness sectors.

The launch of the initiative comes as African agriculture and food security gain increasing prominence on the global agenda, with the recent G8 Summit in Camp David pledging to promote investments in sustainable agriculture on the continent. Speaking from Camp David, AfDB President Donald Kaberuka stated: “There was broad consensus that it is the right thing to do, it is doable and it’s good for the world. The Summit was about growth, and growth in Africa begins with agriculture.”

“This initiative has the potential to catalyze unprecedented levels of investments into the agribusiness sector throughout the African continent. The potential will of course only materialize through efficient and responsive implementation.

I have no doubt that with the combined experience of the international fund manager, its local African banking partner, the World Wildlife Fund (WWF)as environmental advisor, and AfDB's oversight as sponsor, this transformative goal will be achieved in the medium term,” says Mouhamadou Niang, Manager at AfDB’s Private Sector Department.

The Fund of Funds will be in compliance with a state-of-the-art environmental and social management system, currently being developed by AfDB in cooperation with the WWF. The initiative is in line with AfDB’s strategy to support private sector development on the continent.

It is complementary to current efforts undertaken by AfDB’s in cooperation with the Food and Agriculture Organization of the United Nations (FAO) and The United Nations Industrial Development Organization (UNIDO) in the context of the African Agribusiness and Agro-industries Development Initiative (3ADI).

As the first initiative of this nature on the continent, this Fund of funds will catalyze investment into the agribusiness sector with the ultimate goal of inclusive job creation and promoting innovative, environmentally sustainable approaches throughout the agribusiness value chain.

Distributed by the African Press Organization on behalf of the African Development Bank.

Contact:

Technical:

Carlotta Saporito

c.saporito@afdb.org

Tel: +216 7110 3223

Media:

Onike Nicol Houira

o.nicol@afdb.org

Tel: +216 7110 3227

Measles Epidemic in Uganda

By Esther Nakkazi

For the past eight years, at the Stanfield 1A building, the children’s ward at Uganda Mulago Referral hospital, the measles ward was not busy. Half way through this period it was closed. There were no measles patients.

Now, at least one patient dies every other day at the measles ward as the country handles an epidemic that started last year in October. 

Measles, a vaccine preventable disease, which was almost wiped out in Uganda in 2009, with 95 percent reduced measles cases, is back and also spreading through porous borders to southern Sudan, northern Kenya and the DR Congo.

Dr. Sabrina Bakeera-Kitaka a pediatrician at Mulago hospital says the biggest problem is that parents forgot to take their children for immunization. ‘There was a general state of laxity by all the players.’

After the long spell of containing measles in the communities and nationwide, parents and health workers relaxed and put other priorities ahead of them. Children admission numbers to this measles ward have now soured recording 183, 206 and 363 cases in the months of February, March and April this year and the severity of the cases has increased.

Deaths statistics have increased in tandem at the ward from an average 0.8 to 1.8 percent to 2.4 to 3.4 percent mortality per month.

According to Caroline Namukwaya, the Sister in Charge at Stanfield ward, most of the patients come in very sick with measles and malnutrition. She blamed cultural inhibitions for fuelling the risks as parents deny children proteins in their diets with the hope that they will feel better without them.

Culturally, while infected with measles, children are not fed on meat or milk. They are stuffed with small fish with no salt and smeared with squashed ripe bananas and sheep’s ghee but this only increases their state of malnourishment in a suppressed immunity.

“When a child gets measles they need all the proteins to keep them healthy. Measles is severe, fatal and patients should not be made to lack any nutrients or kept at home,” said Dr. Bakeera-Kitaka.

Measles presents as an acute viral respiratory disease that affects the largest organ of the body, the skin, and all other organs. It also presents itself especially in children with high fever, rashes and vomiting.

The United Nations Children’s Fund (UNICEF) says about 777,000 childhood deaths occur every year worldwide, with more than half occurring in Africa.

Dr. Richard Nduhura the state minister for Health says there are 5,211 confirmed measles cases in 46 districts. He said the government is planning to respond through a mass measles immunization campaign this week starting on Saturday.

Children between the ages of 6 months and 5 years will be vaccinated in the mass campaign in a move aimed at creating herd immunity, up to 90 percent coverage, in the hope that it will reverse the epidemic.

Of concern now is the falling vaccination national average rates in Uganda, which stand at 67 percent, combined with the fact that immunogenicity wears off after every five years. But there are worries that parents may still not take their children for immunization based on their perceptions about risk.

“I remember in 2002 during a mass measles immunization exercise, we brought our own children to Mulago to how the public that it was not dangerous,” said Dr. Bakeera-Kitaka.

Although health experts have emphasized that vaccinating carries fewer risks than not vaccinating, many parents in the developing world still view vaccination as doing something dangerous to their children.

Vaccines are considered one of public health’s ‘best buys’. A measles vaccine costs less than half a dollar, 0.38 cents. It is also a significant contributor to the Millennium Development Goals, particularly MDG 4—a two-thirds reduction in child mortality by 2015.



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NITA-Uganda to hire firm to manage the national fibre optic cable

By Esther Nakkazi

Uganda is in the final stages of contracting a firm to manage the National data transmission and e-government infrastructure project after a forensic technical audit by the Kenya based East Africa Telecoms Infrastructure Limited.

The National Information Technology Authority-Uganda (NITA-U), which is in charge of the project said the contracted firm will manage and maintain the fibre optic cable infrastructure on behalf of government after a verification drive for userbility is completed.

According to Charlotte Ampaire, the spokesperson of NITA-U, the procurement process will be complete by June this year. But stakeholders say NITA-U could be presenting limping infrastructure to a commercial manager, which NITA-U has refuted vehemently.

The government conceived the NBI/EGI project to facilitate e-Governance and to extend connectivity to submarine cables at the border with Kenya as well as provide access to cheap Internet across the entire country to spur job creation.

NITA-U has carried out verification to ensure that all defects have been addressed and a report to that effect has been submitted to our management to review and approve the works before closure of the forensic technical audit said Ampaire.

A Chinese leading global information and communications technology (ICT) solutions provider, Huawei, was contracted by the Uganda government five years ago to lay a fibre optic cable in a $106 million NBI/EGI project to areas that were not seen as commercial for the private sector.

However, the work done by the Chinese firm was found to be substandard prompting a forensic technical audit in 2010, which found mishaps like the cable depth was too shallow at 0.9m instead of 1.2m exposing it to vandalism and accidental damage caused by road contractors to plus it had no thunder lines and some of it was suspended through septic tanks without protection.

“Huawei acknowledged these mishaps and committed to fixing them at their own cost,” said Edward Baliddawa, a member of Parliament on the ICT committee of Uganda parliament.

The audit also found that the cable posed cyber insecurity, as almost all routers did not have console password protection, meaning anyone could login into the router and access information.

And the network design was also found to be faulty at some sites with a couple of spur sites, meaning they have no self healing when damage is inflicted which increases downtimes as a result of fiber cuts or card failures.

The forensic audit team carried out random spot checks of the fibre and preferential checks to features such as bridges, manholes, drainages and road crossings.

The audit was meant to ensure that all installations, equipment and construction carried out by Huawei, was in conformity to the agreed designs, whether there was value for money and to identity the impact of the project on the environment.

Fortunately, the team did not observe any significant impacts that the installation of the cable made on the environment and no major pollution was witnessed and recorded, says the report.

NITA-U officials acknowledge that most of the issues found by the audit was with the quality of the outside plant works. But from the forensic audit “the general conclusion is that the cable was laid as per contractual design and specifications, the equipment was installed and is in good condition,” said Ampaire.

While stakeholders say with poor supervision to the contractor, the badly laid fibre optic cable is now limping suffering multiple cuts everyday by ignorant, mistaken and malicious locals and from uncoordinated activities with the Uganda National Roads Authority (UNRA) repairing roads.

“One of the most outstanding observation we made out of this excise is that in the 1st phase of the NBI, there was no independent supervisor. The Ministry of ICT depended on what the contractor told them and this was very unfortunate,” said Baliddawa.

Some firms that were sub-contracted by Huawei to work on the project are also unhappy that they have never been paid by the Chinese, which has reduced their operations due to limited capital while others closed shop altogether complaining about delay in payment.

Our operations have stalled, suppliers are not forth coming and interest is amassing in the bank because Huawei has failed to us, said one of the subcontractors.

“We have been repairing this cable over and over again. We did our part but Huawei says if they do not get their Provisional Acceptance Certificate (PAC) from the government, they cannot pay us but this is unfair,” said another sub-contractor.

Another sub-contractor said they are suffering due to government’s inefficiency, which failed to supervise the contractor now they are lumping their problems on them- the small firms.

“All notwithstanding, our focus should be on ensuring that the NBI is commercialized, the third phase is embarked on very soon and that NITA should now embark on making strategies for providing the last mile connectivity solutions off the NBI to most of the rural areas,” said Baliddawa.

The NBI/EGI project is to be implemented in four phases; phase I estimated to have 168 Kilometer of fibre optic cable to link five towns including Mukono, Bombo, Entebbe and Jinja to Kampala completed in 2007 while phase II estimated to involve the laying of approximately 1477 kilometers of Optical Fiber Cable across the country to extend the national backbone to all parts of the Country is nearing completion.

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Hope for fertilizer response for African farmers

By Esther Nakkazi

Plants get their water and nutrients from the soil. Sometimes they obtain nutrients from fertilizers added to the soil. We get nutrients from plants. In Africa, however, there is limited knowledge on the type of soils, which soils respond to which fertilizer and what nutrients can be added to boost crop production for food security.

Soil field trials across Africa, however, to investigate the responsiveness or the lack of it, by her soils to fertilizers are going on by the Nairobi based World Agroforestry centre (ICRAF) in partnership with the Globally Integrated Africa Soil Information Service (AfSIS) project.

“We are hoping to get a fertilizer response for African farmers,” said Mercy Nyambura a researcher, at the soil-plant spectral diagnostics laboratory at ICRAF. “African farmers have been using fertilizers with no changes in crop yields, we hope this can encourage them to use more and the right fertilizers.”

Studies show that fertilizer use in Africa is by far the lowest in the world. On average, African farmers apply about 9 kg per hectare of fertilizer compared to 86 kg per hectare in Latin America and 142 kg per hectare in Southeast Asia.

African farmers also do not know the mineralogy and the micro nutrient value of the soils they are dealing with, so the commonly used ammonia, phosphorus, and organic fixing fertilizers have not been responsive to crop yields.

“We need to be better informed. Most of the fertilizers used are generalized. WE shall create fertilizer formulas and combinations that are specific for certain soils for Africa,” said Nyambura.

The information generated will benefit African farmers, extension workers, agricultural institutes, the private sector dealing in fertilizers and others to use and sell the most appropriate type of fertilizer or treatment for their specific soil type.

“This information will allow farmers to set realistic yield targets and inform them of the inputs required to achieve them,” said Dr Jeroen Huising, a senior scientist at the International Centre for Tropical Agriculture (CIAT) who is leading this effort with other national research organizations.

ICRAF officials said this would boost Africa’s agricultural productivity and greatly increase the efficiency of resource use, ensuring that money is not lost on inappropriate fertilizer type.

So far, this is one of the focused, practical, evidence-based solutions that will deal with Africa’s food insecurity, hunger, malnutrition and soil degradation. Africa’s agricultural yields and farm incomes have been stagnant for the last four decades according to research.

How it is being done:

The project is doing this by gathering soil samples from all over Africa. At least 16,000 soil samples will be examined and analyzed, with 320 different soils from the 54 countries across Africa.

The analysis will seek to come up with some common patterns in crop responses to fertilizer application and to degradation processes; to classify responsive soils — those showing a significant response to fertilizer applications — and those that only show a marginal response to fertilizer application.

Ultimately, an African soil profiles database will be available at ICRAF under the AfSIS project, with 14,000–20,000 profile records by the end of 2012. So far the Database has over 12,000 soil profile records for 37 countries, with some of this data collected over the years by Food and Agriculture Organisation (FAO) and other organisations.

The soil data available by the end of this year at ICRAF will also be standardized, in digital form, up-to-date, more accurate with soils’ properties to provide knowledge about the condition and trend of African soils and their ability to support agriculture in Africa, said Elvis Weullow, a senior laboratory technician at ICRAF.

The AfSIS project is part of a wider, global initiative to digitally map the World’s soil resources, by a team of scientists at ISRIC - World Soil Information, which contributes to the project as part of the global digital soil map consortium – GlobalSoilMap.

ends

Support Initiative for People with atypical Sex Development

Press Release; Uganda Health and Science Press Association

Two human rights groups in Uganda have this morning launched a documentary: She is My Son- The Pain of being an Intersex person in Uganda, with a call on government to protect intersex people by availing families with information on intersexuality.

The two organizations, Support Initiative for People with atypical Sex Development (Sipd Uganda) and Uganda Health and Science Press Association noted with concern that many intersex people are denied their full potential in life for simply being who they are.

The documentary has also been posted on you tube: http://www.youtube.com/watch?v=bMfRrc64rl4&feature=share. Mr. Julius Kaggwa, the SIPD Uganda Executive Director said while launching the documentary that intersex people face discrimination, isolation and stigma based on their genital make up and other conditions that not necessarily lead to ambigious genitalia.

“The current approach in treatment is that health workers and families are using the concealment oriented approach. They undertake surgery without the express consent of the intersex individual,” Mr Kaggwa said.

He also noted with concern that the tests which are undertaken before surgery are in many cases especially for young children are disputable. “For example an estrogen test may be taken on a child and a decision is reached for surgery, yet at puberty for example, a similar test would determine which genital is predominant,” he said.

There are also legal challenges in Uganda, where there is no third gender, yet some intersex would want to be counted among “the other.” “In some case female hormones are not enough to make a particular person a woman, neither are the male hormones. How then do you legally characterize such a person without traumatizing them. This calls for information availability to the public, but also for the legal and policy makers in this country,” Mr. Kaggwa added.

“This is a volunteer documentary, a first to highlight the plight of intersex people to the wider global community,” Mr. Kikonyogo Kivumbi, the Uhspa Uganda Executive Director said at the launch in Kampala.

He called on government to promote the intersex people’s rights to health and education as Ugandans. “I also appeal to the Uganda Pediatric Association, a consortium of pediatric experts to come out and senstise people on intersex. Many people wrongly think that all intersex are homosexuals. Certainly the children doctors can clarify this to end stigma.” Kikonyogo added

Media contacts:

Julius Kaggwa : +256784251819, sipd.uganda@gmail.com

Tom Makumbi: +256773231066, makumbisipd@gmail.com

Kikonyogo Kivumbi: +256752628406, kikonyogo.k@gmail.com ( for Kiswahili)                       

Leaders Rally Private Sector Investment to Accelerate Agricultural Transformation

Press Release; Addis Ababa, Ethiopia, 10 May 2012 – African agriculture is undergoing a transformation, creating a new era of opportunity for both farmers and investors, according to African and global leaders at the World Economic Forum on Africa.

The Grow Africa Investment Forum, convened jointly by the African Union, NEPAD and the World Economic Forum, engaged over 270 leaders including heads of state and government from Ethiopia, Rwanda and Tanzania, as well as leaders of African and global business, international and donor agencies and farmer organizations.

Participants noted that African agriculture offers tremendous growth potential to investors which can strengthen food security and economic opportunity on the continent. Greater private-sector investment and improvements to the business enabling environment are needed to capture that potential.

Leaders noted that much of agriculture’s potential remains untapped. Meles Zenawi, Prime Minister of Ethiopia, said “we have scratched the surface, but we haven’t yet broken the mould. When we do that, you will see the explosion of development in Africa.”

Seven countries showcased specific investment and partnership opportunities aligned to their national priorities for agricultural transformation. Jakaya Kikwete, President of Tanzania, said: “We are ready to do business, that’s why we came to this meeting.” 


He noted that Tanzania’s agriculture investment strategy prioritizes groups that can most benefit from new market opportunities. “When we bring in the private sector, it is to benefit the smallholder farmers. We need to modernize agriculture and make it more attractive to youth.” Paul Kagame, President of Rwanda, noted that “we can mobilize farmers into an entrepreneurial mindset and create new opportunities for women, youth and rural entrepreneurs.”

The Grow Africa partnership has developed significant momentum since it was catalysed by African and global leaders at the 2011 World Economic Forum on Africa. Jean Ping, Chairperson of the African Union, said “the Grow Africa platform is open to all countries, and can accelerate the implementation of national investment plans developed through the Comprehensive African Agricultural Development Programme (CAADP).”

The potential seen in African agriculture presents a transformational opportunity, according to Josette Sheeran, Vice-Chairman of the World Economic Forum. “We’re at a tipping point,” she said. “Working together, we can ensure that when we meet in 10 years, it will be in an Africa that is not only feeding itself, but helping to feed the world.”

A total of 116 companies participated in the Grow Africa Investment Forum, including 49 African and 47 multinational companies, plus 20 from other regions such as Asia and the Middle East. Jean-Louis Ekra, President and Chairman of the Board of Directors, African Export-Import Bank, said “much of the investment in Africa can come from Africa if we provide the right financing mechanisms and policy environment.”

Frank Braeken, Executive Vice-President, Unilever, said “African leaders are defining new ways to leverage the agriculture sector as a driver of inclusive and sustainable growth. This offers new agribusiness opportunities that are increasingly attractive to investors.”

Participants agreed that empowering African farmers will be central to success. “Smallholder farmers are a sleeping giant in Africa. That sleeping giant needs to be mobilized into collective action groups,” said Dyborn Chibonga, Chief Executive Officer of the National Smallholder Farmers' Association of Malawi.

The Grow Africa partnership is coordinated by the African Union, NEPAD and the World Economic Forum with a goal of galvanizing sustainable investment into African agriculture, based on country-led priorities. Grow Africa builds upon the CAADP, which works to boost African agricultural productivity through sector development plans. Rwanda, Burkina Faso, Tanzania, Mozambique, Ghana, Kenya and Ethiopia are the first countries to engage with Grow Africa.

At the World Economic Forum on Africa in Addis Ababa, which followed the Grow Africa Investment Forum, Prime Minister Zenawi said Africa has a key role to play in meeting world food demand. The way to realize this is through a transformation of small-scale farming on the continent. Increasing the productivity of small farmers and having them well organized and collaborative, to take advantage of supply chains and investments, will bring the best results, said Zenawi. 


Ethiopia has achieved commendable gains in agricultural productivity using this model in recent years, setting aside 16% of its national budget to agriculture – well above the 10% to which all African governments have committed themselves.

President Kikwete added that governments have an important role to play in providing support in areas of irrigation, inputs and building commodity markets. However, private sector investment is also essential to avoid over-dependence on subsidies.


For more information about Grow Africa:


Contact: e-mail: info@growafrica.com, telephone: +271 10 838 360, Twitter: @growafricaforum