American investors started Uganda’s largest oilseed and maize farming company, Agilis Partners. Founded in 2013, it operates on over 3,000 hectares of land. It produces large-scale commercial maize, soya beans, and sunflowers. The company was focused on sourcing grain from small-scale farmers. But it couldn’t cope with the massive market demand. Thus, they opened their production in 2014. A few years later, the company is on the front page of commercial farming.

This could motivate others who think to invest in Uganda but need help finding the way through. Agilis’ story inspires us to take a look at the challenges, possibilities, and future of commercial agriculture. Here’s a complete overview of the future of farming in Uganda. If you’re looking for investment opportunities there, go through it. The aim is to make your chance of hitting the bull’s eye higher. So, we’ll be focusing on commercial agriculture and aquaculture.

Article Highlights

• Uganda bears much more potential than any other country in Africa considering the agriculture sector.
• Farming in Uganda with the adoption of new strategies and plans is a great opportunity for investors.
• A secured and potential return on investment in commercial farming, especially in agriculture and aquaculture lies in the country.
• Government lead programs along with the country’s capacity are looking toward the next hub for investors as Uganda is confirmed to go through a massive change by 2050. 

Farming and agriculture in Uganda

Uganda is rich in agriculture and the products based on it. The country has 80% of its total area available for agriculture. The sector contributes almost a quarter of the GDP. The future is auspicious to uphold the country to a new level of height. Farming in Uganda is the future where food security and prosperity will meet.

Uganda experienced the highest growth in reducing poverty. In the last 15 years, the country massively decreased the poverty rate. About 64.9% of people managed to improve their conditions who’re living on less than $1.90 per day. 80% of Uganda’s total population is under 30 years of age. And, the young population is ready to jump into reducing those numbers more.

Almost 70% of people are employed in agriculture. So, farming is the easiest path for a citizen to choose for a better future in Uganda. And, is a perfect combination for any investor to bring about some potential return.

Understanding the basics of commercial agriculture and aquaculture

Commercial agriculture and aquaculture are a part of commercial farming. The term typically refers to the production of farming entities. Like livestock and crops at a large number for sale. Commercial farming includes the wide use of modern technologies. The goal is to make a profit out of the production. So, it focuses only on the highest crop yields and efficiency.

Let’s understand the topic by a simple example. Imagine a large-scale farm that uses all the latest or moderate technologies. It uses drones to monitor the crops, modern irrigation systems, high-efficiency seeds, etc. And, these techs ensure higher production and better quality.  

Commercial farming can include crops, livestock, aquaculture, horticulture, greenhouse farming, etc. The characteristics include:

• Profit driven
• Export to generate revenue
• Large supply chain
• Economic development
• Use of modern and smart technologies

Commercial agriculture and aquaculture are the parts of commercial farming. But it only focuses on specific areas.

Now, the key driving factor for commercial farming is profit. So, the simplest way to understand commercial agriculture and aquaculture is by picturing a farm focused on agricultural products and also that breeds and harvests fish. Even if both of these sound odd together, the real scenario is entirely the opposite.

Connection between commercial agriculture and aquaculture

The combination of agriculture and aquaculture is effective and efficient. These firms produce wastes and byproducts of agriculture. It ensures much easier fish breeding by providing them organic, and nutrient-rich feeds. On the other hand, aquaculture does the same to the crops by providing nutrient-rich water for crops. This collaboration maximizes production and resource use. It cuts costs and also boosts the environmental ecosystem within a commercial farm.

Now, thinking the same about large-scale farming, the opportunity is easily understandable.

Commercial Agriculture and Aquaculture in Uganda

Uganda is a landlocked country, but it has abundant sources of water. From the White Nile River to Lake Victoria, the country is blessed with water sources. Critiques will argue that water safety is still a long way for the country. But this is deniable by looking at the farming perspective.

The government in Uganda also initiated programs such as the Operation Wealth Creation. It is looking to ensure food safety for its people. So, Uganda is binding hands with international and regional development partners. To build the economy around commercial agriculture, Uganda is throwing everything it has.

In a report published by the World Bank Group, it mentioned three priority areas for policy action and investment:

• Commercialization through value-addition and trade
• Strengthened public institutions and policy
• Enhanced resilience of agriculture production and rural livelihoods

Smallholders typically go with the available resources. They stay with the minimal and usual production. However, the commercialization concept works differently. The aim of commercial farming is beyond achieving a mere target to feed the people. Rather it incorporates smart agriculture systems to go on large-scale production. The report mentioned earlier recommends the same. Besides, it directs the country to take high-priority actions under national coordination.

Uganda is already building a system focused on the commercialization of agriculture and aquaculture. It’s giving a light of hope to the people as well as the investors. However, if the concern is about challenges, Benjamin Prinz, the managing director of Agilis, has the answer. He said that the only challenge is the weather. Except for it, Uganda’s agricultural potential is “infinite”.

The Future of Farming: Opportunities and Beyond

Africa is the land of many possibilities. Some countries are in the driving seats to make the statement more accurate and sustainable. Uganda, the Pearl of Africa, is one of the most prominent leaders in the coming days. And there are possibilities in every sector peeking to showcase to the world. So, investment plans around Uganda are also highly sustainable and profitable.

According to FAO, Uganda will see a massive transformation by 2050. The population will be more than double with 44% of will living in urban areas. The GDP is going to get a magic touch as it is expected to increase by 175%.

This expected growth will leave the country on the highway to grow more food. And it will be the commercial farms to work as the game changers. These farms will not only supply the country’s population with food and necessities to live on. Rather they will also make sure the export market is skyrocketed.

The transformation in population will also bring major development programs. No wonder, that most of them will focus on the production and supply of food. Thus, the employment rate will increase along with the overall standard of living. This shows how the country is looking at prosperity and becoming a role model for others in Africa.

Digitalization and infrastructure development will also have an impact on the upcoming change. When food production, fair distribution, and export are the main concerns, there’s little chance of being affected. The country can build its economy around agriculture. And, the primary focus will be on this particular sector.

Thus, commercial agriculture and aquaculture are the future of farming in Uganda. Investment in these sectors will be more profitable with a marginal risk. Apart from these stories, the real picture is also saying the same.

The government is committed to protecting the interests of investors. We’re seeing at least its continuous effort. H.E. Gen. Yoweri Kaguta Museveni, President of the Republic of Uganda, established the State House Investors Protection Unit (SH-IPU). It safeguards the investors from unnecessary hassles of bureaucracy and corruption.

Uganda has a welcoming gesture towards the investors. Now, it is time to step up and secure a potential return from the Pearl of Africa.