100 Investment Opportunities in Agribusiness post Covid-19

The Covid-19 Pandemic, which is affecting both food supply and demand, also offers unique opportunities. We’re seeing big shifts in how people are shopping and what they are eating. Digital technologies are being used to set up e-commerce platforms, shortening supply chains by connecting farmers directly with retailers and customers, particularly in urban and peri-urban areas. Governments and the banking sector could cooperate to alleviate disruptions through blended finance by providing credit lines and guarantee schemes for small and medium businesses. Small-scale farmers and cooperatives in rural areas may have more difficulties accessing finance and credit for the coming planting and harvesting seasons. Physically visiting a bank can be impossible due to restrictions. Banks can help people comply with physical distancing rules and minimise delays by fast-tracking mobile banking.

500 million households globally are dependent on agriculture for their livelihoods, disruptions to demand and sales will not only have a catastrophic impact on their current financial positions, but will also hinder their ability to plan and invest in the next farming cycle. Smallholder farmers, who produce and sell nearly 70% of food consumed worldwide, are already extremely vulnerable to changes in market dynamics and now they are facing new and exacerbated challenges that have arisen due to Covid-19. Inaccessible markets, inadequate storage facilities and radical changes in market demand, has led to a 50% drop in demand for produce in Sub-Saharan Africa, especially for fruits and vegetables. Unable to store perishable products due to insufficient cold storage infrastructure, the fruits and vegetables farmers are significantly impacted.

At Agropreneur Initiative, we have been focussed on capacity building in climate smart agriculture but now we are asking ourselves; could we use this crisis as an opportunity to rebuild local value chains and strengthen local businesses and communities? Can technology help us to build back better agricultural value chains? As we ponder these questions, our immediate goal is to support investors/entrepreneurs willing to go down the path of building sustainable agribusinesses and to this end we have compiled a list of investment opportunities in the agricultural sector in Uganda;

Cocoa, coffee and tea

• Manufacture of packing materials

• Establishment of soil analysis laboratory and services

• Manufacture of packing materials

• Growing of other floriculture plants other than roses

• Industry growing at a fast rate of 25% in a year

• Fruit pulp processing

• Dried fruits processing

• Mangoes farming

• Fruit farming

• Export of fruit concentrates

• Processing of fruit and vegetables

Fruits and vegetables

• Processing of organic fruits and  vegetables for export

• Processing of fruit and vegetables

• Export of dehydrated fruits

• Export of fruit concentrates

• Fruit tomate paste processing

• Fruit farming

• Pineapple farming

• Mangoes farming

• Citrus fruit farming

• Dried fruits processing

• Minimal processing of fruits and vegetables

• Fruit pulp processing

Cotton and textiles

• Leather processing

• Commercial breeding and production of semen for the local and export market;

• Laboratories for disease surveillance and diagnosis;

• Local human capacity development

• Organic manure processing for local consumption

• Developing local pasture seeds instead of relying on imported seeds

• Feedlot establishment and management

• Processing of traditional beef products such as smoked, salted and sun dried meats;

• Conservation of feed (Hay and Silage) for sale;

• Beef ranching

• Tanning of hides and skins

• Construction of modern abattoirs to enable meat production and processing

• Animal feeds processing and distribution

Floriculture

Industry growing at a fast rate of 25% in a year

• Expansion of Rose industry

• Growing of other floriculture plants other than roses

• Manufacture of green house plastics

• Manufacture of packing materials

• Production of propagation materials

• Establishment of soil analysis laboratory and services

• Manufacture of green house plastics

• Manufacture of packing materials

• Capacity building

Agribusiness services

• Cold chain

• Packaging

• Cargo freight

• Inputs manufacture; e.g. tractors, vaccines, irrigation equipment, chemicals

• Agricultural Insurance

• Establishment of an agricultural bank

• Construction of warehouse chain facilities across the country.

Investment opportunities in Forestry sector

Uganda is endowed with favourable climatic conditions for forests. Even though tree growing involves long-term investment, it promises high returns for those who ensure proper management structures and technical standards.

The Sector offers numerous opportunities in areas such as timber and non timber processing for export, manufacture of high quality furniture/wood products, sawmilling, paper and printing as well as packaging. There are also opportunities in afforestration and reforestration especially of forest medicinal trees and craft material. The specific opportunities in Forestry sector include the following

Pinus caribaea var. hondurensis (PCH):

PCH is a fast growing tropical species that is well suited to conditions throughout many parts of Uganda. It copes well with shallower soils on lower elevation sites and has proved to be very adaptable – performing well on fairly dry sites in Nakasongola, Masindi and Mayuge as well as cooler, wetter sites in Kyenjojo, Bushenyi and Mubende. PCH is easy to raise from seed though only improved seed should be used for commercial planting: such seed is available from breeding programmes in Australia, South Africa and Brazil and has been imported into Uganda since 2002.  Growth rates of 15-25m3/ha/yr and rotations of 18-25 years are anticipated with good management practices and using improved seeds.

Eucalyptus grandis:

E. grandis is commonly planted for fuelwood and poles but is increasingly being recognized as a valuable source of timber too. The timber is easily worked and can be used for heavy and light construction, furniture, boxes, veneer, plywood and pulp for paper. It is easy to raise from seed and coppices vigorously when cut. It is best suited to deep soils in the cooler, moist areas – particularly in the west – around Kabarole and Bushenyi, in the Central region and in the south-west (Kabale). Mean Annual Increments of over 50 m3/ha/yr can be achieved in such areas, though an average of 25-35 m3/ha/yr is more likely.

Maesopsis eminii (Musizi):

Musizi is a fast growing indigenous species of considerable promise for timber production in Uganda. It produces a general purpose hardwood timber. Musizi must be thinned on time to produce straight timber. It is best suited towards Fort Portal and down the Albertine Rift (Masindi to Kabale). It is not suited to high and/or dry (<1200mm rainfall) areas.

Pinus patula: 

An evergreen tree up to 35m and good for growing in pure stands. The wood is easily worked, fairly light and soft. The ideal area for its growth is extreme South Western Uganda with high altitude ranges.

Cupressus lustanica:

This is an evergreen tree up to 35m and good for growing in pure stands. The wood is easily worked, fairly light and soft. This does well in the humid low lands of West Nile and the South western region of Uganda.

Eucalyptus globulus:

This is a tall tree to 55m. The wood is hard, heavy and strong. Best suitable for upland and high rainfall areas of Uganda.

Teak (Tectona grandis):

This species is best suited for the low altitude sites in northern Uganda.

Other species:

Araucaria (A. cunninghamii & A. hunsteinii) and Terminalia spp. ( T. superba & T. ivorensis) have shown promise on very good sites, with high rainfall and deep soils. There are also other species that have shown promises in trials are Eucalyptus hybrid clones, Cedrela odorata and Pinus tecunumanii.

Planting of soft wood plantations for timber and poles

Production of round wood for timber from plantations has given an important alternative to indigenous timber in Uganda. There is also high  demand for electric and building poles.

Planting of soft wood plantation for pulp

Most of the paper products in Uganda are imported. With the healthy investment climate in Uganda and the potential to produce timber for pulp at lower costs, investing in paper industry is indeed an attractive investment.

Value added products from both hard and soft wood

Furniture: The demand for high quality furniture in Uganda is high.

Flooring and panelling:

The construction industry in Uganda has expanded manifold over the years and the demand for good flooring is on a rise.

Veneer and plywood:

Growing demand can be seen in Ply wood manufacture in Uganda.

Particle board mill from saw dust:

The saw dust from most of the saw mills is  wasted and contributes to fires in forest reserves. A particle board mill will add much value to the saw dust.

Match factory:

The timber not suitable for construction can be utilised through setting up match factories.

Pencil factory:

A pencil factory is also another investment opportunity to trap the ever increasing demand from schools in line with the government policy on Universal Primary Education.

Seed Multiplication for sale:

Such seeds include pine (Pinus caribaea, Pinus oocarpa) and Eucalyptus (Eucalyptus grandis).

Other opportunities

• Honey processing for export

• Cassava processing for industrial starch  both for local and external markets

• Packaging of beans and pulses for export.

• Public Private Partnership investments in the enhancement of maize, beans and rice production for export regionally and provide for household food an security (machinery and agro inputs provision)

• International and national bidding opportunities for the establishment and rehabilitation of irrigation schemes in partnership with the Government of Uganda

Contact us

Agropreneurs Initiative

Address: Suite 272 & 273, Tirupati Mazima Mall,

Gaba Road, Nsambya

Website: www.agro-preneur.org

Email: info@agro-preneur.org

Tel: (256) 393-241 411