Focus on agriculture
Feb 25, 2004
THIS WEEK, there have been news of two major foreign investments. The Sundays River Citrus Company of South Africa intends to invest $12m growing citrus fruit in Kamuli for export to Europe.
THIS WEEK, there have been news of two major foreign investments. The Sundays River Citrus Company of South Africa intends to invest $12m growing citrus fruit in Kamuli for export to Europe.
The company is the largest citrus producer in South Africa and believes that Uganda has a competitive advantage over Israel and South Africa because it can grow two crops in a year.
Meanwhile, French investors are planning a factory in Kansanga to extract essential oils from vanilla, ginger, cinnamon and other crops.
Local and foreign investors have actively been developing horticulture, floriculture, cotton ginning, and plantation coffee.
Uganda is starting to become a large-scale maize exporter now that traders have clubbed together to buy smallholder maize.
Clearly Uganda has a huge competitive advantage as far as the production of high value crops is concerned. Many more foreign farmers would come into Uganda if land were available.
They do not require special tax incentives or support. They only require the opportunity. The Plan for the Modernisation of Agriculture will also assist small Ugandan farmers to increase their output dramatically.
The recent explosion of vanilla growing has demonstrated the latent potential in peasant farmers if they can see the benefits. The Ugandan economy can expand dramatically if it focuses on agriculture. This is the way forward.
Uganda will never be globally competitive in industry or manufacturing (apart from agro-processing). It can only practice import substitution that is of limited macro-economic benefit.
Government should minimise its subsidies and incentives to manufacturers and concentrate all support on export-oriented agriculture. Government should strive to maintain an internationally competitive exchange rate that encourages exports and minimises imports.
The company is the largest citrus producer in South Africa and believes that Uganda has a competitive advantage over Israel and South Africa because it can grow two crops in a year.
Meanwhile, French investors are planning a factory in Kansanga to extract essential oils from vanilla, ginger, cinnamon and other crops.
Local and foreign investors have actively been developing horticulture, floriculture, cotton ginning, and plantation coffee.
Uganda is starting to become a large-scale maize exporter now that traders have clubbed together to buy smallholder maize.
Clearly Uganda has a huge competitive advantage as far as the production of high value crops is concerned. Many more foreign farmers would come into Uganda if land were available.
They do not require special tax incentives or support. They only require the opportunity. The Plan for the Modernisation of Agriculture will also assist small Ugandan farmers to increase their output dramatically.
The recent explosion of vanilla growing has demonstrated the latent potential in peasant farmers if they can see the benefits. The Ugandan economy can expand dramatically if it focuses on agriculture. This is the way forward.
Uganda will never be globally competitive in industry or manufacturing (apart from agro-processing). It can only practice import substitution that is of limited macro-economic benefit.
Government should minimise its subsidies and incentives to manufacturers and concentrate all support on export-oriented agriculture. Government should strive to maintain an internationally competitive exchange rate that encourages exports and minimises imports.