Private Private Sector Sector Provision Provision of of Agricultural Agricultural Services Services Insights from a Case Study in Two Districts Anna Borkenhagen University of Applied Sciences, Bremen/Germany International Political Management Program
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Private Private SectorSector Provision Provision ofof
AgriculturalAgricultural ServicesServices
Insights from a Case Study in Two Districts
Anna Borkenhagen
University of Applied Sciences, Bremen/Germany
International Political Management Program
ObjectivesObjectives ofof thethe StudyStudy
Underlying question:
Appropriate role for Government in
facilitating private sector led
agricultural development ?
Goal:
Identify Challenges and Opportunities
for Private Sector Agribusiness
Enterprises !
Private Sector in UG 24.06.2010 Anna Borkenhagen
Case Study DetailsCase Study Details
Selected Districts: Kapchorwa &
Manafwa
Qualitative Interviews with
stakeholders along the value chain
Survey among 62 respondents (Agro
Input Dealers, Private Sector Traders,
Farmers)Private Sector in UG 24.06.2010 Anna Borkenhagen
ChallengesChallenges andand OpportunitiesOpportunities forfor
thethe Private Private SectorSectorChallenges
Access to Finance
Infrastructure
Transportation
Regulation Deficits
Distribution Deficits
Market Information System
Market Access
Opportunities
Largely LiberalizedMarkets
Favorable Legal Framework
Market Availability
◦ Coffee
◦ Maize
Private Sector in UG 24.06.2010 Anna Borkenhagen
Access Access toto FinanceFinance
Private Sector in UG 24.06.2010 Anna Borkenhagen
Bank account Kapchorwa Manafwa
Yes 26 18 44 (71%)
No 9 9 18 (29%)
Access to credit Kapchorwa Manafwa
Yes 26 17 43 ( 97,7%)
No 0 1 1 ( 2,3%)
SeveritySeverity ofof LoansLoans
Private Sector in UG 24.06.2010 Anna Borkenhagen
25,0%difficult
50,0% easy
25,0% somewhat easy/difficult
Severityofloans
ConditionsConditions needingneeding ImprovementImprovement
Private Sector in UG 24.06.2010 Anna Borkenhagen
Access to finance/loans Frequency Percent
Yes 51 82,30%
No 11 17,70%
infrastructure/transportation Frequency Percent
Yes 33 53,20%
No 29 46,80%
market availability Frequency Percent
Yes 24 38,70%
No 38 61,30%
Case Study Case Study FindingsFindings
Starting with market orientation = key
to agricultural development
With an assured market other
problems can be overcome
Kacofa - an instructive example
Private Sector in UG 24.06.2010 Anna Borkenhagen
KacofaKacofa –– an an instructiveinstructive ExampleExample
Private Sector in UG 24.06.2010 Anna Borkenhagen
KACOFA
• Kapchorwa Commercial Farmers Association
• founded 1999 by 27 farmers
• 3015 members today (20% of population)
• own extension network
WFPCentenar
y Bank
USAID
/LEAD
• 2000: 41 mill Ushs
• 2010: 230 mill Ushs
• branch in Kapchorwa
(2007)
• best buyer of Maize
• 5000 Mt via forward
contract
• built 2000 Mt WH• IDEA: best farm
practices
• increased productivity
(30 bags/hectare)
• market linkage
AcchievementsAcchievements ofof KacofaKacofa
Private Sector in UG 24.06.2010 Anna Borkenhagen
1
2
3
4
CO
UN
T
improvededucation improvedincome productionatbiggerquantity
Yes No
ConclusionConclusion
! Ensured output market opportunity can
be key to agricultural development as it
might assist to overcome other problems
?! Government has to provide a regulatory
framework to set minimum standards
Private Sector in UG 24.06.2010 Anna Borkenhagen
Discussion questionDiscussion question
The study showed that ensuring secure
output market opportunity can be key to
agricultural development.
◦ What can be done to make more / better use of
this mechanism?
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