Unlocking Agribusinesses in Northern Uganda Through Affordable BDS
Agriculture forms the cornerstone of Uganda’s economy, yet many Farmer Organizations (FOs) and Agri-MSMEs struggle to realize their full potential. Through the Promoting Rural Development in Northern Uganda II (PRUDEV II) programme, GiZ sought to address this challenge by building the capacity of BDS providers so that they can more effectively strengthen the MSMEs and lower-tier agribusiness organizations.
High fees, limited follow-ups, and a one-size-fits-all approach leave many organizations struggling to sustain the benefits of these services. But there’s a brighter story ahead—a bold new approach, championed by GiZ’s PRUDEV II, is taking root in Northern Uganda, and it promises to transform the region’s agricultural landscape.
Affordable, Tailored Solutions
Recognizing the flaws in the traditional BDS delivery model, GiZ has shifted its focus. Instead of relying on costly high-tier BDS providers, the organization is championing affordable, tailored solutions for lower-tier organizations across 22 districts in Acholi and Lango Sub region.
GiZ has partnered with FRIENDS Consult Limited (FCL), a leading agribusiness and financial services consultancy firm, for a two-year mission to improve how BDS is delivered. Through extensive research, including a BDS Needs Assessment and Market Analysis, FCL identified practical solutions to connect agribusinesses with the BDS support they need – training and helping BDS providers to develop sustainable and affordable business models to serve Agri-MSMEs.
The Numbers Speak
The findings of the Needs Assessment highlighted the challenges—and opportunities—facing agribusinesses:
- Farmer Organizations (FOs): Only 18% are well-performing, and 41% struggle due to governance and financial management gaps.
- MSMEs: Most (60%) are stuck in the survival stage, with just 13% in growth and 27% in maturity.
- Access to BDS: Only 54.3% of the 81 surveyed organizations had accessed BDS in the past three years, and many cited cost as a major barrier.
- Willingness to Pay: While 100% of MSMEs and 86% of FOs want BDS, 73% of MSMEs and 68% of FOs can only afford services priced below UGX 100,000.
These insights paint a clear picture: the demand is there, but affordability and accessibility remain critical bottlenecks.
A Game Plan for Success
To address these gaps, GiZ and FCL are rolling out innovative BDS delivery models designed to empower agribusinesses at every level. Key strategies include:
- Affordable Services: Delivering cost-effective, quality BDS tailored to the needs of FOs, MSMEs, and individual farmers.
- Building Capacity: Strengthening governance and operational skills to enable organizations to thrive independently.
- Fostering Collaboration: Creating partnerships between agribusinesses and local BDS providers to enhance sustainability.
- Market Access: Breaking down barriers to finance, quality inputs, and competitive pricing.
Why It Matters
This isn’t just about improving businesses it’s about transforming lives. With affordable BDS, FOs and MSMEs led by women and youth can grow into engines of economic empowerment. Stronger organizations mean better livelihoods, more jobs, and thriving communities across Northern Uganda.
This new strategy is more than a solution, it’s a reminder that even the smallest agribusiness has the potential to flourish with the right support.
Planting Seeds for a Brighter Future
The story of Northern Uganda proves that transformation is possible. The seeds have been planted, and with strategic investments, innovative approaches, and collaborative efforts, a new chapter for agribusiness is unfolding.
The region’s potential is limitless. Now is the time to unlock it.
By: Daniel Anthony Egessa
PROJETS OFFICER – FCL
