TO DAM OR NOT TO DAM THE MURCHISON FALLS?

When government first mooted the idea of developing Bujagali dam in the 1990s, the opposition to it came from water rafting companies and joined by some environmentalists.

They were successful in stalling its development because they managed to arouse the funders concerns about the environment, including the fate of some frog that may go extinct with the development. It didn’t help too that the developer American energy company AES run into financial trouble, a result of the Argentinian debt crisis of early 2000s.

"The dam got built anyway after loadshedding had us groping in the dark daily and we saw the light...

Fast forward 20 years and we are gearing for another fight this time over the Murchison Falls in northern Uganda.

Last week state tourism minister Godfrey Kiwanda let slip that cabinet had approved a study of the Uhuru Falls that lie upstream from Murschison Falls. The potential promoters of the project estimate they can generate an additional 360 MW from the site.

We got a foretaste of things to come, when in June it was revealed that a South African company had applied for a license to develop the site, a precursor to carrying out studies. This time it was not a lone tour company fighting the development. Statements came fast and thick from everywhere including from the tourism minister Ephrahim Kamuntu who stopped short of swearing there would never be a dam in the park.

So why now the apparent about face by government. When faced with the facts it is no surprise that they would consider the proposition.

Currently only one in five Ugandans are connected to the grid. This figure alone speaks volumes about the state of our development or lack of thereof...

The countries with the lowest access to power are a who’s who of the poorest countries in the world – South Sudan, Burundi, Chad, Malawi, Liberia, Central Africa Republic and Mogadishu. And that is not by mistake.

It’s a straight line correlation no power, no industrilisation. No industrialization, no jobs. No jobs, widespread poverty. Another relationship that can be drawn is that countries with high incidence of poverty are unstable, probably the most unstable in the world.

The naysayers will argue of course that we have too much power at the moment.

With the commissioning of Isimba power dam earlier in the year, we sent our generation capacity beyond a thousand megawatts. The 600 Megawatt Karuma Dam is soon coming online and will further swell our power surplus. Our peak demand currently is about 500 MW.

But that will soon be snapped up with local demand doubling every seven years. And this before you consider growing demands from industry, which is set to increase and as we become more active in extractive industries.

A few years ago Professor Kisamba Mugerwa convinced me that our power needs are so huge that we need to start planning for nuclear energy.

It is currently estimated that the power generation capacity on the River Nile is about 4000 megawatts. The National Planning Authority projects that we will need about 40,000 megawatts by 2040.

Developing nuclear energy is so much more expensive than hydro power by after of at least twice, so we don’t have the capacity currently to develop nuclear plants. Thee economic activity that would come with extra power would be taxed to finance nuclear power in the future.

It is against this background that you can see why government would even consider a power dam in the Murchison Falls National Park.

The proposed site of the dam is one leg of a spilt in the river – the Uhuru Falls, with the other split being the Murchison Falls that we know.

We can’t preempt the study but there is a real possibility that the dam can be built without affecting the Murchison Falls, the spectacular view of the River Nile bursting through a seven-meter gap to fall more than 40 meters below.

The bigger argument against tampering with the site may be that the construction works may threaten the delicate balance of the environment, causing irreparable damage that may see the animals the park is famed for, and are its main attraction, immigrating elsewhere.

"If this was a straight political decision it’s an easy one to make. Animals or tourists do not sustain governments in power....

The politicians would frame the question as dooming four in five Ugandans to second class citizen ship for lack of power and its ripple effect on the economy or preserving the falls for the enjoyment of a few?

The middle road is to recognize that Ugandans urgently need improvements in their living standards but it would be nice to preserve the beauty of our environment. There has to be some give and take.

But decisions have to made now or necessity will force us to make even more unpopular decisions down the line.

FIGHTING DOMESTIC VIOLENCE, WHERE DO WE START?

I don’t know whether to laugh or cry when discussions about domestic violence pops up. Everyone in the room is against it. The men would never lift a hand to their better halves. And the women would not stand for such treatment, if he dared lay a hand on them.

The knee jerk reaction is to look closer into your drink because you know, or have heard, how so-and-so is the “heavy weight champion of his home”, the sound of his car makes everyone in his house break into a cold sweat. As for her, she has been married coming to 20 years and her fondest memories are not from her relationship. There is the aberration – because we are a patriarchal society, the man on who violence is meted out by his wife. But to see them in public and the way she dots on him you wouldn’t know his torment.

And what about the violence meted out on the children, justified by the old say “Spare the rod and spoil the child”? Children are living in terror, to be seen and not heard. We bark at them, quick to reach for something to hit them with at the slightest provocation. This is done for the convenience of the parents or the teachers. It is much easier if the kids are “well behaved” than dealing with their unique individualities...

Several things happen to kids brought up like this. Violence is seen as normal recourse to imparting discipline on their own kids, because it was done to them and to their spouses because they saw their parents dishing it out.

Or on the other side of the pendulum the parents who have come out of such violence, determine not to do it to their own kids and go so overboard as to not impart any disciplinary control, apart from violence, on their own kids with detrimental outcomes.

Meting out physical violence doesn’t take much intelligence. On the hierarchy of power, physical violence is at the lowest rung. The perpetrator can ensure compliance, but this is given grudgingly, the victim can often do his thing once the beater looks the other way.

It’s an inefficient way of enforcing ones will. Isn’t it funny – or not, how the victim keeps getting beaten for the same thing over and over again?

I have seen figures which show that at least half of Ugandan women in a relationship have ever experienced domestic violence and about that number live in fear of their current partner or most recent partner. A horrendous statistic but I shudder to think that it may even be understated. As these kind of crimes often go unreported.

It’s hard to say whether domestic violence is on the rise or not.

One way I think, to help reduce domestic violence is to make more widely known the wider definition of it, beyond beating of family members.

We need to acknowledge the domestic violence that is not physical.

He swears he has never touched his wife. And he is true to his word. But the mental torture he puts her through – dismissing her as a person, rubbishing her professional achievements, criticizing her running of the house, putting her down among family and friends, he might as well have been using her as a punching bag. And the other way around.

By publicising the wider definition to include psychological and emotional violence, physical violence, the extreme form of domestic violence may be reduced. And we can get to working on reducing the other forms.

Hopefully the violator would begin to suffer some cognitive speed bumps before he gets to physical abuse and maybe stop before then. But even for the victims, they would recognize the other signs of domestic violence that precede physical abuse and hopefully have a better reaction time to events or walk away altogether. Easier said than done of course.

The #MeToo movement, where women are coming out years after the fact to report powerful men’s patterns of abuse shows why this is important. Ignorance of what constitutes domestic violence today will not redeem one 20-, ten or even five years down the road.

It’s a complex subject. Or is it? If we lived by the golden rule “Do unto others as you would like done to you” would we even be having this discussion?

THE YOUTH BULGE, A CHALLENGE WE CANNOT IGNORE

Outside Johannesburg in the town of Germiston is the Ekurheleni East College (EEC), a modest campus that serves as part of a pilot project to head off South Africa’s looming disaster.

The technical and vocational training institution is the beneficiary of an African Development Bank (AfDB) grant geared at better skilling its students – youth and SMEs for the workplace.

Students at the school learn vocational skills like a metalworking, electrical installation, plumbing and business studies.

"The need is urgent. South African officials estimate that at least six million people – or 30% of the working age population, are unemployed most of whom are youth...

The South African economy, growing at paltry two percent, can’t promise to create enough jobs for its jobless masses. It is hoped that if the pilot one of three, prove successful in getting their graduates employed or open up businesses, they can roll it out across the country and forestall what is widely seen as a ticking time bomb.

Apartheid biased development towards a white minority – South Africa has the widest wealth disparities on the continent, and as a result there are thousands of youth roaming around thinking that they are no better off 25 years after apartheid was dismantled. This frustration has shown itself in the country’s high crime rate and the attacks on foreign workers earlier this year.

A corruption which has almost ground the economy to a halt – they suffer up to 16-hour load shedding on some days, has not helped issues.

It’s the story of the continent – without the apartheid hangover, but in contexts that are no less daunting.

In Uganda more than 80% of the population is under the age of 35. According to 2016/17 Uganda Bureau of Statistics (UBOS), 13.3% of Ugandans between the age of 18 – 30 are unemployed. Other numbers have varied more wildly but don’t stand up to anecdotal evidence.

That being said the economy not creating enough jobs in the formal sector to absorb the thousands turning up in the job market every year. So like South Africa practical and entrepreneurial skills will have to be emphasized going forward.

"Conspiring against efforts to create jobs for all by the year 2040 or whatever the number is now, the increasing automation of processes across sectors. Every industry from manufacturing to banking to retail, even garages are looking to employ fewer and fewer people to gain efficiencies and cut costs....

While manufacturing jobs is what drove the industrial revolution in the 20^th century I am afraid it will not have as significant a role in the 20^th century.

New plant and machinery now need fewer workers to do more work. Unlike the workers of the industrial age these new workers need to be better educated than the automatons of the last century too.

That being said there will always be a need for a carpenter, mechanic, plumber especially as we become more urbanized. But even more importantly there is a need for good entrepreneurs who understand not only how to set up businesses but run them sustainably.

This last point is critical. An engineer who leaves university knows the subject inside out but is unable to start and run a firm, that can not only do construction but also employ more and more people and grow. Is it any wonder that after today we have no major indigenous contractors winning major jobs in this infrastructure development boom?

"The biggest companies were first small companies. And for every big company hundreds even thousands have fallen by the wayside. The ones that have survived the natural selection process have done so often because they have been deliberate and systematic in growing their capacity over time... 

In more advanced economies this has happened over generations, here in Uganda maybe over the last three decades, at least.

In addressing the youth unemployment challenge, government needs to recognize that throwing money at the challenge is at best a stop gap measure at worst will see our youth addicted to handouts. 

What government needs to do is improve the environment for doing business – we are 112 out of 189 in the Ease of Doing business rankings, commit more resources to providing vocational and entrepreneurial skills.

If done systematically then even the government handouts will be better utilized in serving the end of job creation.

At Ekurhuleni they don’t stop at graduating technicians, but work with industry – the surrounding industries actually nominate the students to the college, provide internship slots and often high them eventually.

Those who are not so lucky graduate with a toolkit to help them set themselves up in their own communities.

"South African trade ministry officials know it’s a race against time – at the college they are employing a semester system that allows them to train double the students given the facilities. When fully rolled out in a decade or so they intend to be annually passing out at least ten percent of the unemployed youth annually or 600,000 graduates....

We wish them luck. We will all need it.

FINTECH TAKING OVER, FOR THE BETTER

Activities to commemorate the financial inclusion week culminate this week with The Africa Fintech Festiva,l which starts tomorrow, (5th November) here in Kampala.

The festival’s theme is “The role of fintech in Africa’s digital economy”. The word Fintech has come into everyday use in the last decade or so and is used to describe the use of technology in facilitating banking and financial services.

The financial sector has always been ahead of the curve in the adoption of technology, but its only in recent times that applications have brought these efficiencies to the man on the street.

The speed of innovation and adoption has made us forget how traumatizing it was to deal with banks and financial institutions.

There was a time when banks were only on Kampala road, opened from 9 am to 1 pm, never on weekends and account opening and minimum balances were so prohibitive as to serve as a barrier to entry.

At the time banks would keep hand written ledgers that had to balanced every day, hence the early closure and the reluctance to go for the mass market. As competition increased, banks had to seek new clients forcing them to rack their ties and jackets to mix it up down town. New technologies helped them cope with the increased volumes of transactions and operate longer hours.

The introduction of the mobile phone created a new platform, nearer to most than their local bank branch, which has seen an explosion in accounts.

A few weeks ago the Bank of Uganda reported that mobile money users had grown to 25.8m last year compared to 22.7m in 2017. But while the value of transactions reduced to sh66.9trillion from sh73trillion the previous year the number of transactions nearly doubled to 2.5 billion from 1.3 billion.

These numbers are interesting because commercial bank accounts in Uganda last year were just under eight million, a third of mobile money accounts. This speaks to the fact that people want to and see the benefit of engaging in the formal financial sector, but for most of them it has been difficult to participate. As a result the benefits of credit and other financial products have eluded them and in effect hobbled their prospects of climbing up the social ladder.

And we will only see an acceleration in the innovation and adoption of fintech. On a micro level it will make us more efficient and productive. It has been said that the Ugandan worker is not as productive as his counterparts in the region. While a part of it is our laid back attitude to work, there is also the fact that our processes have not been as capital intensive as our neighbours.

With miniaturisation computers are becoming faster and smaller. Its barely two decades ago when 256MB CPU was adequate for our desk top computer. Now you hold that power many times over in the palm of your hands. You can now spare yourself the ordeal of visiting the banking hall depositing and withdrawing funds, receiving and making payments off your phone or computer.

The potential of an economy can be seen by how fast money moves. The time spent filling forms, standing in line, moving to and from the bank, is everyday being reduced to its bare minimum, which will and is having a ripple effect through the economy.

The beauty of technology is that upgrades are flying off the shelves almost every year, meaning “old” technologies are becoming less costly, guaranteeing that even the poorer members of the society will be hooked up faster than ever.

In Uganda today mobile phone coverage stands at about 76% across the border in Kenya it is at 105%. And it shows. Last year about sh393b daily was transacted across all mobile money platforms in Kenya, the comparable amount here is less than half that at about sh183b.

The relative sizes of the economy aside, Kenyans are well ahead of us in the use of mobile money to not only transfer funds, to provide credit, insurance and facilitate business transactions to the point that a cashless economy is a very near possibility.

One of the major challenges of our economy is that we are not aggregating our resources into meaningful sums be they human resource or land but especially capital. It is not a stretch of imagination to see how fintech will provide a real solution for our inability to aggregate capital.

Believe it or not some people don’t deal with banks out of some deep seated phobia, dealing with their phone not so much.

It’s become so pervasive that we forget that fintech is still in its early days, services are still more costly and there are still a lot of legal gray areas that have to be ironed out before it can reach its full potential.

Fintechs potential to mop all the loose change lying around, fashion products for the lowest of low as well as increase efficiency in the whole financial sector is scary. Scary in a good way if it makes all our lives easier.

MAKERERE UNIVERSITY RUNNING OUT OF ROAD TO KICK THE CAN

The events at Makerere University this last week were saddening but not surprising.

Students took to the streets to protest a planned 15% increment in their fees and came face to face with security agents who were deployed to quell the fracas.

It was never going to end properly if they army were unleashed – untrained in putting down civilian unrest, on the students. It was even more ominous when the press were kept off the campus.

It took the intervention President Yoweri Museveni for some kind of settlement to be arrived at. The university authorities did a climb down, announcing the 15% increment would only be applied to tuition and not to the facilitation fees.

Strikes -- protesting low pay by the teaching and non-teaching staff and increments in students fees, have become a perennial affair. After a few days of disagreement, a band aid solution is arrived at and normalcy returns to the University, but just for a while.

"The government and leadership at Makerere have been content to kick the can down the road year after year, ensuring that the real challenges not the symptoms fester and boil over every year.

The challenge of Makerere and other public universities is one of leadership. Inadequate resources, the falling quality of the output and now the perennial strikes are all but symptoms of poor leadership.

How is it that the square mile with highest concentration of brain power in the country, maybe even in the region, has failed to solve the simple equation of admitting a youthful population, accommodating them in relative comfort, imparting knowledge and graduating useful members of society without drama?

In fact the market is becoming increasingly dubious of its graduates, which suggests the former Harvard of Africa is not keeping up with the times. You shall be judged by your fruit, they say.

"It starts with the way the university’s chief executive officer is selected, an archaic process that rewards popularity rather than competence....

You can paper over the leadership inadequacies when you have a student body of less 500, like at Independence – making it a privilege not a right, you have a monopoly on university education and you are operating in an analogue world, where change takes place at a glacial pace.

But when you have a student body of 35,000-plus whose numbers have outstrip the infrastructure, competing with several other institutions for government support and with added baggage of a reputation the selection of the CEO has to go beyond academic cronyism.

Assuming a student body of 35,000 paying on average a million shillings a semester, for an annual revenue of at least sh70b annually, wouldn’t you have a truly competitive process to select the best possible business manager for the job?

As it is now the university’s CEOs in recent memory have been doctors, computer scientists, chemists, biologists, lawyers, all upstanding gentlemen and a lady, but none a business manager.

That is what Makerere and other public universities need, business managers, people who can take the raw input of youth, capital and the assets the university is endowed with and efficiently graduate productive members of society.

"It is a crying shame that Makerere still gets into fights about money with the staff and students, given the combination of the aforementioned brain power on the hill and the assets under their stewardship....

Nowhere in the world do university students pay the full cost of their education. A clever use of fundraising efforts, income from endowment funds and some state contribution manage to bridge the deficit between student fees and the real cost of education.

It was shocking to learn that student fees have not been increased at Makerere for the last 13 years! At the bare minimum there should be some allowance for inflation. This smacks of cheap populism ignoring good economic sense and digging a deeper hole.

Government has a lot to answer for the chaos at the university. The popular move to open up university education to a wider public, while failing to increase investment in line with the increased enrollment is at the heart of the current crisis.

Makerere is a shadow of its former self, its crumbling halls of residence are testament to this. And how is it that no new hall of residence has been added to its portfolio since CCE was was established in 1982.

This continued failure will force the government to make unwanted decisions. A reality that increases with every day.

On the one hand they maybe forced to close the university all together because it can’t continue to carry it. It may be cheaper to pay fees for students to other universities than pretend to run Makerere. Or to privatize the university, as a going concern, which may invariably lead to a cut back on student numbers but of a better quality.

Neither of the two options are palatable.

Basic education is important for an industrial economy, but tertiary education is critical for the fourth Industrial revolution, where better skilled workers than the automatons of the industrial age will be required.

Government has to make some hard decisions. To divest itself of its universities or commit significantly more resources – financial and managerial, towards university education. Maintaining the status quo is just postponing a major crisis.

WHY ISN'T UGANDA MORE INVESTED IN SOLAR POWER?

Recently a solar power plant was launched at the Kololo Indpendence grounds in a low key event that the afternoon down pour did not dampen.

The 516 kw plant, basically solar panels on the pavilion and a room full of batteries, will be used to power the National Identification & Registration Authority (NIRA) offices and data banks on the premises. But only 200 kw of it will be consumed by NIRA with the remaining 300kw to be sold to the national grid.

According to industry estimates 516kw can power about 500 Ugandan households during peak periods.

Baroness Verma, the chairperson of UK based company Nexus Green who installed the plant, said the monthly savings will amount to the total power bill of $9000 or about sh30m and this is without factoring in the potential revenue to army of selling excess capacity to the grid she said.

During the occasion defence minister Adolf Mwesige said the Kololo installation was pilot project and that his ministry intended to roll out similar plants to all military installations around the country.

A relief he said, because as it is the army consumes sh19.7b in power a year but only budgets sh7.4b for that expenditure, a deficit that keeps getting rolled over year after year.

"With costs of solar power technology falling every year – the cost of a solar cell has fallen to $0.26 per watt in 2016 from $76.67, a visitor to Uganda, which enjoys sunshine year around would wonder why power especially for domestic use is a challenge at all...

In rural areas the uptake of solar power is growing. The major cost element of solar power is the installation costs. In many cases in order to make it affordable for rural households, traders in these systems request a relatively small upfront sum and recover the rest over a period.

A combination of the falling costs of the technology and the overwhelming demand means the private sector is way ahead of the public agencies in powering up country homes.

The challenge though is that the batteries needed as part of solar systems have not seen prices drop as fast as the cost of solar panels.

It makes sense to shift as many domestic consumers to solar power and release the power generated by our hydropower dams to industry. In fact with adjustments to the law individual households can even become suppliers to the national grid like happens in Germany and other European countries which encourage solar power generation.

If this were to happen it would even mitigate against one of the disadvantages of power plants that the occupy too much space in relation to the power they generate. It is estimated that it would take two acres or two soccer pitches to generate a megawatt of power.
But if we all planted solar panels on our roofs and generated enough power for our individual households it would save us the land needed to establish a solar farms. We currently generate 50 megawatts of power by four solar farms around the country.

It reminds me of the massive savings we made barley a decade ago by shifting to energy saving bulbs. In a New Vision story from the September 2007 it was reported that 30 MW were saved during peak periods by replacing 750,000 normal bulbs with energy saving bulbs.

While the urgency to save power may not be there now – when the 600 MW due from Karuma comes on line later in the year we will have a surplus capacity of about 1000 MW, we need to be making hay while the sun shines.

Which brings us back to Nexus Green. The company has an understanding with government that it will set up a plant in Kapeka to assemble solar systems for irrigation. It is not inconceivable that if it takes off and its prices are pocket friendly they may very well end up expanding their market to domestic users.

Solar power is an opportunity That has gone begging for far to long.

To illustrate world Solar power generation currently stands at about 500 Gigawatts and of the eight major generators only Australia and India are in the tropics.

REALISING UGANDA’S FOOD BASKET POTENTIAL

For the longest time possible we have heard how Uganda has the potential to the bee the region’s bread basket.

Our fertile soils – we have almost half of the region’s arable land, our abundance of water --- a fifth of the country is under water and our benign climate – three harvest in a year are within the realm of possibility make this no ideal boast.

A combination of rudimentary farming practices, poor marketing and bureaucratic inertia has meant that this has remained a pipe dream and embarrassingly too, has meant that some part of the country suffer perennial famine.

Enter Agilis Partners who in the space of under decade have become the largest grain producer a leading grain exporter to the region from Uganda.

It all started humbly with a wish to feed pigs.

In 2009 working as a volunteer at an orphanage outside Kampala,in the year before he went to college Benjamin Prinz, co-founder of Agilis Partners, wondered how the orphanage’s operations could become more sustainable.

“So we thought we would help them build a pig farm. Instead of giving them cash we wanted to give them a sustainable source of capital,” Prinz told the Business Vision.

They bought 150 pigs and quickly found out they consumed a lot of maize.

“We realized how challenging it was to get a stable price, good quality and consistent quantities of maize to feed the pigs,” he said.

Then came another discovery.

“In Uganda we found that the maize market is not a commodity market. By definition a commodity is a product that has a definable quality standard and can be liquidated quickly into cash,” Prinz said.

Three different suppliers of maize can have differing moisture content and qualities as to render them not the same product from a marketing perspective.

“So clearly the commodity markets were undeveloped and fragmented. But we also realized Uganda was feeding East Africa and the region was eating $3b worth of maize alone. The challenge that we were facing as a small business trying to feed our pigs was a big economic challenge for the region.”

The light bulb moment led to, in 2013, Benjamin, his brother Philip and Argentine Eduardo Brown starting Joseph Initiative, a business intended to better market the maize grain inside and outside Uganda. This eventually morphed into Agilis Partners, which is the holding company for Joseph Initiative and Asili Farms.

Agilis Partners head office is located about 200 kms north of Kampala on the Kampala-Gulu Highway. The spartan office block also serves as the head office of Asili Farms.

Asili Farms, comprises four farms in western Uganda on which maize, soya bean and sun flower are grown. On these farms about 13,500 acres are under cultivation.

“Last year our farms and outgrower farmers produced 25,000 metric tons of maize, soya bean and sunflower,” Finance manager Caroline Aoja told Business Vision in an interview conducted on a makeshift bench and table.

She said they supply the World Food Program in Uganda, export to Kenya and, until the border closure earlier this year, to Rwanda. From one of their two processing units in Kasese, the other is in Masindi, they export maize flour to Democratic Republic of Congo (DRC).

Owning farms was not part of the original plan. The initial intention was to be a grain marketing company, organizing grain in places of plenty and transferring it to places of scarcity.

“We had invested all this capital in storage and handling infrastructure, built a prominent market network and we find we weren’t able to get enough supply from the local farmers,” Prinz recalled.

So in 2014 they started a pilot scheme on 20 hectares of land, which failed spectacularly because the instructions for growing maize were useless.

“Our third partner helped us access know h ow from Argentina on how to grow maize on large scale. In our second season he looked at how we were trying to grow maize and said they were prehistoric but said, “Wow! There is great potential here,” he said.

Their agronomist Juan Acutain, is Argentine and has helped improve the farming practices on the farms.

But what Agilis is particularly proud about is how they have worked with local farmers to not only supply the Joseph Initiative but improve their won productivity and standard of living.

“We work with at least 15,000 farmers with and average acreage of one hectare each,” said Martin Jadribo, the company’s, small holder farmer mobiliser.

The farmers are categorized according to the acreage they are willing to commit, trained not only in agriculture, but financial literacy and benefit from seasonal demonstrations on the farms, where new methods or inputs are introduced to the farmers.

The benefits have been tangible.

“We have seen yields jumping from six to 18 100kg bags an acre with some of the farmers we started with. Not only because they have improved their farming practices but also because they know they have a ready market for their crop,” Jadribo said.

He said that previously there were at least a dozen middlemen – each taking a cut, between the producer and the end market but now through their 80 collection sectors – 30 in Mubende and 50 in the Masindi-Kiryandongo area, farmers are getting a bigger percentage of the market price.

But beyond that Agili farmers is working with the farmers to grow them into commercial farmers from what they were previously, subsistence farmers.

“In our interactions we get them to think about a growth plan – this year we producing so much we should produce more next year; a business plan – that does what we are doing make business sense and then an investment plan – so once we have made this surplus how do we invest it,” said Jadribo.

About 20 km down the Kigumba-Masindi road Agilis has one of its two processing centers. They have a storage capacity of 10,000 tons and during peak season process 250 tons a day.

“Currently the Asili farms provide 70 percent of our input, with agents and the farmers providing the remaining 30 percent. Ideally we would like a 50-50 share,” Paul Murungi, the processing facility’s operations manager told Business Vision.

Murungi explained that at the plant they receive, clean, dry, store and bag. Plans are to expand the processing capacity to a daily 500 metric tons, which will mean a rumping up of production by both the farms and farmers.

Which goes back to the original challenge for Prinz and his partners, how do we commoditise maize in Uganda?

“The way agriculture is practiced here it is a zero cash system. The small farmer uses seed from the last season, uses the labour of the family and they sell what they either eat all they harvest or eat some and sell some and they do this year after year even if it is not profitable. But they keeping doing it because they don’t have another source to liquidate or being paid for their labour,” Prinz explained.

“There is difference between making money an actually generating an economic return.”

So as a first step agriculture needs to become commercially viable for more people he explains, and for his farmers helping them improve their yields, the quality of their produce and providing a market for them.

That’s a start but because agriculture the world over is a capital intensive endeavour he said, we need more farms of between 150 to 200 acres, a process Joseph Initiative is helping its farmers with.

But obtaining financing for agriculture is notoriously difficult.

“I agree our financial institutions do not understand the risks of agriculture, partly because they are so many, “ he said. Price fluctuations, weather variations

Agilis Partners benefitted from locally sourced credit for their project from Agriculture Credit Fund, which while he was unwilling to divulge the extent of, was used to put up the Masindi processing facility, which could easily have cost a few hundreds of thousands of dollars.

“We were able to do this because remember, we started as a marketing company, the cash flows from which could justify the loan and we had market access.”

Prinz said integration – production to marketing was one way they were managing the risks associated with agriculture.

“We are not just a farming business, we are not just a trading business and we have a vision to invest in protein as well. Fully integrating the whole value chain starts to mitigate the risks and makes us a more bankable project.”

But he warns that equity is key in agriculture.

“The patient capital that comes with equity is key in agriculture …. We started by getting funds from friends first, our family are not well to do so that wasn’t an option,” he said.

The enormity of the challenge – feeding regional markets is not lost on him.

“Africa currently imports about $35b in food annually. That’s shipping jobs abroad. If nothing is done by 2025 we will be importing $115b we will have tripled our food importation bill....

So what would he like to see the government do to support this dream?

“The first thing I would like to see happening is an increased attention to food safety,” Prinz said, explaining that it is the biggest public health issue in sub-Saharan Africa particularly the presence of aflatoxins, a  fungus that has been shown to cause liver disease and even mental issues like autism in children. “The flour being produced in this county is poisonous because of it.”

He would also like to see the free flow of animals – chicken and others across borders.

“This is important so that our clients can expand their businesses to match the growing demand in Kenya and in the region.”