FRIENDS Consult’s Role in Promoting Agribusiness Through PPP
FRIENDS Consult’s Role in Promoting Agribusiness Through PPP
What does a UN development organization have to do with the private sector? If the organization is the International Fund for Agricultural Development (IFAD), the answer is – a lot. The success of the recently concluded BDS component of the Yield Uganda Investment Fund speaks volumes on this.
Context
With Agriculture contributing over 20% of Uganda’s GDP and employing about 70% of the population, its improvement trickles development deep and wide. Despite its importance and public sector investments in it, the sector is still challenged by limited access to finance, inadequate infrastructure, low productivity, and weak market linkages. Responsive solutions need to be multifaceted and ought to transcend the public/private sector divide.
IFAD’s Path to Unlocking Agribusiness Potential
Recognizing the challenges and seeking a new way, IFAD and EU (the funder) redefined their approach to holistic agricultural sector development in Uganda through the YIELD Uganda Investment Fund (YIELD). Instead of targeting farmers through a donor-type public projects, the Fund invested in agribusiness companies that work in partnership with thousands of smallholders, linking them to structured markets, providing essential financial and technical support, and adding value to produce. The investments, managed by Pearl Capital Uganda, provided patient capital with clear exit strategies. All the 15 agribusiness companies also benefited from the Business Development Services (BDS) component managed by FRIENDS Consult Ltd.
FCL Role in Business Development Services
The BDS component of the YIELD Fund supported agribusiness companies with essential skills, aptitudes and knowledge to scale up, including financial management, governance, marketing strategies, product certification, out-grower management and other necessary aspects.
As the BDS manager, FRIENDS Consult assessed the client companies’ needs, developed for each a Capacity Building Plan, procured consultants/ technical advisors, and controlled the quality of consultants’ deliverables – ensuring that the agribusiness companies received suitable support to grow and improve. FCL also provided hand-holding to each of the 15 investee companies in various areas. Typical areas of capacity building/training, which helped the agribusiness companies improve productivity or quality, included:
- Strengthening out-grower schemes for supply chain efficiency.
- Financial & governance training for business stability and proper oversight.
- Product certification to meet industry standards & increase market access.
- Marketing strategies to enhance competitiveness and broaden market outreach.
- Equipment installation & staff training for mechanization and operational efficiency.
- ESG compliance support for sustainability.
- Product research & innovation for better market responsiveness.
Sustaining Impact – What Next?
IFAD, through the YIELD Fund and its BDS component, has produced a demonstration effect to show that if well designed and managed, private sector approaches can deliver development projects effectively. It would be a good idea for other development partners to explore.
By Ivona Muhindo (CPA, PMP)
Finance & Admin Manager – FCL