Agriculture: The heartbeat of our global food system

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OPINION

By Gerald Barekye

Every June 11, the world celebrates world agriculture day. This day was first launched in Ottawa, Canada, in 2016, with the slogan "Agriculture belongs to YOU." The day is   aimed to reconnect people with the earth and the agricultural industry, emphasizing that agriculture is not just a matter for farmers but for consumers as well.

As we head to celebrate this day, I looked around and evaluated the values of agriculture since it’s the back born of Uganda’s economy, employing 70% of the population and contributing significantly to the country's GDP and export earnings. The sector also contributes 25% of national GDP and employs 70% of the population.

The sector provides great avenues for economic growth and economic inclusion, particularly from women and youth. Women make up 55% of the economically active population, contribute more than 75% of the total farm labour and over 90% to farm-level primary processing operations. Almost half (45%) of the heads of smallholder farming households are under the age of 40.

The sector remains the backbone of Uganda’s economy, with approximately 70 % of the population engaged in agricultural activities. The sector plays a vital role in food security, export earnings, and rural development.

Further it is notable that the Agriculture plays a central role in Uganda’s economy and is a source of livelihood for a significant proportion of Ugandans. The sector accounts for up to 50% of exports and employs 64% of all Ugandans as well as 72% of all youths. Although I commend government for commitments made to investing in agricultural transformation, Iam concerned about the low budget allocations to the agro-industrialization program. For example in the FY 2024/25, the program is expected to suffer a budget reduction of UGX 170Bn in FY 2024/25 from UGX 1.813 trillion in FY 2023/24.

The sector continues to face numerous challenges including a significant budget cut of approximately 170 billion, despite its status as an externally financed core sector has limited the sector progress. The disproportionate allocation of funds, with a substantial portion remains centralized, leading to limited expenditure at the grassroots level. Further, the sector faces challenges such as poor agricultural practices, low technological adoption, and limited access to markets, finance, and extension services.

More so, the agriculture continues to depend on external financing to realize its objectives. In the current financial year, over UGX 1 trillion of the program budget is expected from external financing while half of the program budget for FY 2024/25 is also externally funded. Further, up to 70% of the Development budget in the program is externally funded. This increases dependence on external funds to finance the agro-industrialization programme greatly contributes to financial instability and economic crises as the agricultural economy becomes vulnerable to changes in donor priorities and funding levels.

There is great potential for faster growth because more cropland has opened up, peace in previous conflict areas means more people can farm and Uganda got a new independent trading partner in South Sudan. The East African Community has also opened more avenues for regional agricultural trade.

To address these challenges and unlock the potential of Ugandan agriculture, we must prioritize technology adoption and sustainable practices. This includes leveraging digital solutions for efficient logistics management, inventory control, and cash flow management. Additionally, climate-smart agriculture and low-cost irrigation systems can enhance resilience in the face of climate change ¹.

In addition, the commercialization through value-addition and trade, strengthened public institutions and policy, and enhanced resilience in agriculture production and rural livelihoods are critical areas for policy action and investment. By addressing these areas and promoting sustainable agriculture practices, we can increase agriculture incomes, reduce poverty, and boost prosperity in Uganda.

Futher the ministry of agriculture Uganda should increase access to financing for farmers, particularly smallholder farmers and women and invest in climate-smart agriculture and sustainable land management practices.

The reality is that agriculture has been gaining momentum in Africa, ensuring food sovereignty, creating employment opportunities, and helping balance the trade deficits of countries highly dependent on imports to feed their population. However, even when more than a quarter of the world’s arable land is in Africa, the continent only generates around 10% of global agricultural production.

The African leaders should prioritize agriculture sector to keep the continent food secure.

The writer is a Member for IGEN-EA