Most countries lag
behind economically because they fail to exploit their competitive advantages.
Massive Youth Unemployment in Uganda today correlates directly with the country’s
inability to create opportunities in sectors where they have competitive
advantages. In Uganda, agriculture is a key competitive advantage because of
the large tracks of fertile arable land available countrywide. Uganda’s land
can record high yield even without fertilizers.
Since it employs
nearly 80% of the population, Agriculture is the sector that can be relied to
ignited an increase in household incomes for the greatest number of people.
Investment in Agriculture can positively impact on many sectors of the economy
simultaneously. Great and mighty economic powers such as the United States of
America owes their economic growth to Agriculture.
Uganda certainly has
numerous untapped opportunities. It is noteworthy that the handful of small
holder coffee farmers in Uganda have already made Uganda Africa’s leading
coffer exporter and brought in considerable income. Uganda’s production level
and earning can still grow up significantly for coffee, just as for other
agricultural products. Investments towards processing such products locally could
further allow Uganda to export finished products rather than raw materials.
Exporting finished products would earn even more money for the country and
create many new jobs at the processing plants.
The growth of
agro-processing industries to process agricultural products will itself create
jobs for multitudes in other related industries. By-products in other
manufacturing cycles are automatic raw materials for other products. Other
business will emerge to handle Packaging, transporting finished goods etc. When
the goods are exported the country will earn the much needed foreign exchange
for the economy and improve the balance of payment position.
The fact that
countries that are not as endowed as Uganda are doing well means the sky is the
limit for Uganda. Arid Egypt grows and exports agricultural products all year
round using water from rive Nile, and Uganda has the source of river Nile right
here. Israel products several tones of fresh water fish in tanks, and Uganda has
the largest fresh water body right here. Botswana exports more tones of beef
products globally, yet Uganda has more cows than Botswana. Israel exports more
Diary products yet Uganda has more dairy cows than Israel.
It’s time to take
advantages of these competitive advantages to uplift the economy. With the bulk
of our population being youthful, availability of labour force is in itself another
competitive advantage at our disposal. The kind of agriculture that will create
enormous opportunities will have to be commercialized intensive agriculture,
not the traditional hand-to-mouth subsistence agriculture. This requires real
investments and the national budget should reflect agriculture as a priority
area.
The huge amounts of
money the country can potentially earn from agriculture will automatically spur
the growth of other sectors, notably the service sector. Uganda already has a
vibrant service sector, but since most people - about 67% live on a 2$ a day-
the service sector can’t continually grow in an economy where the majority have
a low purchasing power. Agriculture is that one sector that can unlock the
purchasing power of the largest portion of the population since it employs the
majority. The increase in purchasing power would then increase revenues in the
service sector.
Agriculture can thus
accelerate economic growth, which will create several new opportunities for
citizens. Most prosperous people who
will earn a decent income from agriculture will reinvest the money in other new
ventures. It is these new ventures that will create more employments
opportunities for our young people. It is on that premise that agriculture must
be embraced and allocated up to 10% of the budget annually. As a productive
sector, the more money invested in agriculture, the more money government will
earn back in tax and non tax revenues. The increased revenues can then be
allocated to other crucial budgetary sectors.
The next logical
question is where do we get the extra money to invest in agriculture? In my
opinion we have three clear feasible ways. One would be to temporarily cut down
the state’s administrative costs and use the money to invest in agriculture.
Office automation would cut down the required number of personnel, thus saving
some money. Reducing on the number of political appointees, by trimming down
some non-essential and redundant personnel such as the “senior advisors” who
offer no advice at all.
Another strategy is
by implementing agricultural and economic zoning in different regions. Zoning
will encourage bulk production with the additional advantage of economies of
scale. It becomes easy to attract foreign direct investments for
agro-processing industries to areas with enough raw materials.
The third strategy
would be to formation of individually owned agricultural cooperatives through
which many smallholder farmers can pool money together to either carryout
farming together or to process agricultural products. The government can set up
a cooperative bank or a Bank that is agriculture-friendly to provide financing
to the agricultural cooperatives. Alternatively, the government can channel
cheaper credit in form of Agricultural loan facilities through existing
networks of commercial banks.
The
author is a farm owner with a farm in Nwoya District.
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