IFAD projects contribute to household incomes in Uganda

IFAD-funded projects contribute to higher household incomes in Uganda

Rural development projects co-financed by IFAD have helped to increase household incomes in Uganda over the past seven years. This and other issues were presented on 5 February 2021, as Ugandan senior policy makers and representatives of IOE met to discuss the findings of a country strategy and programme evaluation (CSPE), carried out in Uganda in 2020.

Key to the achievements of IFAD’s co-financed projects in Uganda has been the building of infrastructure and market support services, which have reduced transport costs and increased market prices due to improved road access. Equally important have been IFAD’s investments in rural finance, which have supported regulatory reforms and linkages between local savings and credit groups and service providers.

“Our evaluation shows that the IFAD-supported projects have been overall successful at reaching poor rural people in Uganda. They have resulted in increased productivity and better access to markets and rural financial services. The projects have also contributed to growing productivity and incomes, and strengthening individual and group capacities”, stated Mr Fabrizio Felloni, IOE Deputy Director.

Organized by the Ministry of Finance, Planning and Economic Development of the government of Uganda and IOE, in collaboration with IFAD’s East and Southern Africa Division, the on-line workshop brought together policy makers from the Ministries of Agriculture, Animal Industry and Fisheries, and Local Government, and development counterparts, civil society organizations and private partners. Over 70 participants attended the virtual event.

Hon. Dr Ajedra Gabriel Aridru, Minister of State for Finance, Planning and Economic Development, delivered welcome remarks and an opening statement for the event. Mr Donal Brown, Associate Vice President, Programme Management Department of IFAD, gave a statement, followed by Mr Fabrizio Felloni, who pronounced an introductory statement. Ms Chitra Deshpande, Senior Evaluation Officer, IOE, then presented the main findings and conclusions emerging from the evaluation, as well as recommendations for future work in Uganda. After a question-and-answer session, Ms Lakshmi Moola, Country Director, and Ms Sara Mbago-Bhunu, Regional Director, East and Southern Africa Division, IFAD, gave statements on the future directions for the IFAD programme in Uganda. Closing remarks were delivered by Mr Felloni and the Hon. Bagiire Aggrey, Minister of State for Agriculture, Animal Industries and Fisheries. Ms Maris Wanyera, of the Ministry of Finance, Planning and Economic Development, acted as Master of Ceremony.

Meeting participants discussed the main findings and issues emerging from the CSPE, reflected on opportunities and challenges in the IFAD-Government partnership and addressed strategic priorities for IFAD’s continued financing in Uganda.

In particular, during her presentation, Ms Deshpande noted that while projects have contributed to growing productivity and incomes, particularly through the value chain approach, climate variability is increasing and needs to be addressed more extensively to avoid negating the portfolio’s positive achievements on rural livelihoods.

Uganda’s economy has grown in the past 20 years, during which time agriculture has provided a quarter of the country’s GDP whilst employing 72% of its labour force. However, multiple structural challenges constrain agricultural growth, including climate change and unsustainable natural resource consumption patterns.

To offset these challenges, government policy frameworks have sought to transform agriculture into a commercially viable sector around a set of key value chains. However, notable challenges remain. Moreover, while overall funding for agriculture has fallen below the government’s international commitment, the rising impacts of climate change could setback IFAD’s achievements if not addressed promptly.

Looking forward, the meeting called for exploring ways to expand IFAD’s effective value chain approach to other commodities with greater beneficiary outreach potential, for mainstreaming climate change more extensively in IFAD’s future in-country investments, and for delivering more transformative approaches and interventions tailored to the specific needs of women and youths.

“Our evaluation recommends developing a strategy for knowledge management, partnerships and country policy engagement that is backed by sufficient resources”, underscored Mr Felloni.