KAMPALA – Uganda is a country of origin, transit, and destination for many migrants. In 2020, the country accounted for 400,000 international migrants’ and received USD 1.1 billion in remittances, accounting for 2.9% of the country’s GDP.
According to the Food and Agriculture Organization of the United Nations – FAO, while living abroad, diaspora communities can be a potent force for the development of their countries of origin, not only through remittances but also through the promotion of trade, investments, research, innovation and knowledge or technology transfers between their current host country and their country of origin.
“However, this potential remains largely untapped due to barriers that impede them from investing in productive sectors of the economy, such as agriculture,” FAO says.
To bridge the need, FAO and the Government of Uganda embarked on the implementation of the project “Strengthening Capacity to Harness Positive Effects of Migration” to catalyze the potential of the Ugandan diaspora to support and invest in Uganda’s agribusinesses.
Speaking at the final project workshop at Kampala Serena Hotel on Thursday, Ms. Priya Gujadhur, Deputy Country Representative, FAO Uganda revealed that since 2020, the project has generated systematic links between agri-food actors and diaspora, generating knowledge on the respective needs and providing a platform for engagement.
“Migrants and diaspora communities actively contribute to [their] home country’s economic growth, through [the] capital, skills and the transfer of know-how sparing job creation in key sectors of the economy, including in the agri-food sector.”
“In order to maximize the benefits of diaspora contributions, FAO is helping diaspora contributions to really add value to and grow the agri-food sector, while also empowering diaspora Agripreneurs and their networks,” she added.
Through the creation of the first Uganda Diaspora Agribusiness Network (UDAN), Priya notes that they have been able to facilitate investments and knowledge transfer from the diaspora to Ugandan youth-led agribusinesses, through a dedicated matching programme.
FAO in collaboration with the Government was also able to establish the national Technical Working Group (TWG) on diaspora, which includes line ministries, agribusiness incubators, youth organizations, and Ugandan diaspora agripreneurs. This, accordingly is actively contributing to the policy debate to make use of diaspora potential for rural development.
“We contributed to strengthening policy dialogue and coordination across migration and agriculture stakeholders on diaspora engagement in agribusiness.”
Madam Priya challenged the media to not only pay attention to challenges associated with migration but also raise awareness of the benefits that migrants bring, particularly to their countries of origin.
She reiterated the commitment of FAO to support the Ugandan diaspora to contribute to Agriculture and Rural Development in Uganda.
Director of Regional and International Economic Co-operation, Ambassador Elly Kamahungye Kafeero revealed that diaspora remittances are the number two major source of revenue for Uganda, accounting for 4% of Uganda’s GDP.
“If you look at the year 2019, diaspora remittances were $1.4 billion, and Uganda was ranked among the top 10 recipient countries in Sub Saharan Africa before it declined to $1.1 billion in 2020 because of the COVID pandemic.”
“Now, it is, therefore, important that as the government we design measures to tap into the diaspora input and leverage their strengths for Uganda’s national development and benefit,” he noted.
Mr. Kafeero underscored the need to mobilize diaspora beyond remittances, so they are engaged to participate in the development agenda of the country that ensures mutual benefit for the diaspora, and also the citizens.
He commended FAO for the strategic partnership and readiness to assist the ministry of Foreign Affairs not only theoretically but also financially.
Sharing his experience in agriculture, one of the beneficiaries and a member of UDAN, Mukasa Mu-Awiya commended the Government and partners for creating the market.
He, however, noted that the biggest challenge in agriculture is quality, quantity, and sustainability.
“Market is on top but what has the government done on the ground to make sure that these markets they have created; we can provide quality products for them, we can provide volumes of that product and we can supply that market sustainably so that we can stay there,” he said.
According to him, there is a lack of information by Ugandans who are going to produce.
“They don’t know even the cost of the product required by the markets that the government has created or even the volumes.”
Mukasa, a youth agripreneur gave an example of Uganda’s maize that was rejected in Kenya because of aflatoxins because of poor harvesting methods.
“So means the farmer did not understand the quality and how they’re supposed to harvest his maize so that they can fit the market created in Kenya.”
Another beneficiary, Ms. Nyakato Maureen – an Agrobusiness lady from Fort Portal, Kabarole district commended the project noting that previously she had the raw materials but was’nt doing value addition.
“I pitched my business to UDAN and got a match. I was connected to an investor who took me through product development and I managed to produce what was necessary.”
She added, “I was lucky she (the investor) helped me purchase and install two solar tunnels at my farm for the drying of the vegetables. I now have three products on the market and I am now able to produce for the international market.”
Mr. Ngabo Simon from Uganda Investment Authority said that they are rolling heads to create more investment opportunities for the diaspora.
“We’re also looking at having diaspora incubation spaces in all our industrial parks. Members of the diaspora should not be limited to you Kampala only.”
He noted that they are also considering interesting the diaspora in green investments. “The government of Uganda has a number of assets like the forests. So we’re looking at how we do carbon trading with these assets and members of the diaspora contribute to this for returns.”
