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Experts Warn of Negative Impact on Uganda’s Economy Due to Decreased Funding for Agro-Industrialization

By Jumah Kakomo

Civil society organizations in Uganda have raised concerns over the government’s persistent limited allocation to the agro-industrialization programme, particularly the sustainable agriculture approach.

The national budget framework paper for the financial year 2025/26 indicates that the Agro industrialization program will receive a budget of UGX 1,689.352 trillion, a 6.86% decrease from UGXA 1,813.860 trillion allocated for FY 2024/24.

Speaking to the media on Sunday, Kampala, Lawrence Kanakulya, Programme officer advocacy at participatory ecological land use management (PELUM) noted that the programme is targeted to propel Uganda’s economic growth tenfold forinstance generate annual export earnings of US$ 20 billion by FY 2039/40 as a target sateted out in the FY 2025/26 national budget frame work strategy.

He adds that the budget decline poses a significant hindrance to achieving the economic growth strategy. This reduction of UGX 124.51 billion poses significant challenges for the program, which has already been underfunded relative to its contributions achieving the full monetisation of Uganda’s economy through commercial agriculture, Industrialization, expanding and broadening social services, digital transformation and market access.

The organizations say the just concluded Kampala CAADP presented a comprehensive framework for funding agriculture in Africa and Uganda, specifically, emphasizing the need for significant financial commitments, inclusive policies, and effective governance.

“The Kampala CAADP declaration emphasized the critical need for substantial investment in agriculture to achieve sustainable agrifood systems across the continent among others,”Kanakulya added.

The organizations argue that limited funding threatens the country’s efforts to promote sustainable agriculture and achieve food security.

Pascal Muhangi, an economist at CSBAG, says the government has consistently allocated less than 5% of the national budget to the agriculture sector despite its significant contribution to the country’s economy. He notes that this limited allocation has hindered the implementation of the sustainable agriculture approach, which aims to promote environmentally friendly and socially responsible agricultural practices.

Mugoye Musa program officer at initiative for social and economic righsts (ISER) points out that the sustainable agriculture approach is critical to addressing the challenges facing the agriculture sector, including climate change, soil degradation, and water scarcity. He argues that the approach can help to improve crop yields, increase farmers’ incomes, and promote food security while also protecting the environment and promoting social justice.

The organizations are calling on the government to increase funding for the agro-industrialization programme, particularly the sustainable agriculture approach. They are also advocating for policy reforms to support the implementation of sustainable agriculture practices, including the development of incentives for farmers to adopt environmentally friendly practices.

“We urge the government to prioritize funding for sustainable agriculture initiatives, which are critical to promoting food security, improving farmers’ livelihoods, and protecting the environment,” Lawrence Kanakulya said.

The civil society organizations’ concerns come at a time when Uganda is facing significant challenges in the agriculture sector, including declining crop yields, increasing poverty among farmers, and growing food insecurity. The organizations believe that increasing funding for sustainable agriculture initiatives can help to address these challenges and promote a more resilient and sustainable agriculture sector.

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