|
Getting your Trinity Audio player ready...
|
Agriculture is a cornerstone of Uganda’s economy, significantly influencing both employment and GDP. The sector employs approximately 70% of the population, with estimates suggesting that up to 72% of the workforce is engaged in agricultural activities, including farming, forestry, and fishing.
This high level of employment is particularly crucial in rural areas, where about 76% of the population resides. Agriculture serves as the primary source of livelihood for many, especially for younger individuals entering the workforce, with three-quarters of those aged 15 to 24 finding their first job in this sector.
In terms of economic contribution, agriculture accounts for about 32% of Uganda’s GDP and is responsible for nearly half of the country’s export earnings. The sector’s importance is underscored by its role in providing food security and supporting the livelihoods of millions.
Traditional cash crops such as coffee, tea, and cotton are vital, with coffee alone contributing approximately 19% of Uganda’s total exports. The agricultural landscape is diverse, encompassing a range of products from staple foods to high-value cash crops, which are increasingly important for both domestic consumption and international trade.
Despite its significance, the agricultural sector faces several challenges that hinder its full potential. One of the primary issues is the low adoption of modern agricultural practices. Despite the potential for increased yields through the use of improved seeds, fertilisers, and irrigation, many farmers continue to rely on traditional methods that yield suboptimal results.
Reports indicate that agricultural productivity operates at less than 40% of its attainable potential, with many farmers struggling to meet their household food needs, which limits their participation in markets and exacerbates poverty levels.
Additionally, the quality of agricultural inputs is often compromised, with a high prevalence of counterfeit products, further discouraging farmers from investing in modern techniques.
Climate change poses another significant challenge, as erratic weather patterns lead to crop failures and reduced agricultural output. Farmers in Uganda primarily depend on rain-fed agriculture, making them vulnerable to prolonged droughts and unexpected floods.
These climatic variations disrupt planting schedules and contribute to food insecurity, as many households experience reduced meal frequency and lower incomes due to insufficient harvests. Furthermore, land fragmentation and soil degradation complicate the situation, as farmers struggle with limited land availability and declining soil fertility, which are crucial for maintaining productivity.
To alleviate these challenges, startups can play a pivotal role by introducing innovative solutions and technologies that enhance agricultural practices. For instance, agri-tech startups can develop platforms that provide farmers with access to quality seeds and fertilisers, ensuring they receive authentic products that improve yields.
Additionally, startups focusing on mobile applications can facilitate the dissemination of weather forecasts and market information, empowering farmers to make informed decisions about planting and selling their produce. Moreover, initiatives aimed at improving financial access, such as microfinance solutions tailored for farmers, can help them invest in necessary inputs and equipment, ultimately boosting productivity and fostering sustainable agricultural practices in Uganda. Here are five startups that are digitising Uganda’s agricultural chain.
Ronald Katamba. (Founder of Jaguza)
Ronald Katamba is the founder of Jaguza, a Ugandan AgTech startup started in 2013. The company aims to revolutionise livestock farming in Uganda and across Africa by addressing critical challenges such as the loss of livestock due to diseases, livestock rustling, and inadequate tracking and management systems.
By leveraging technology, Jaguza seeks to enhance productivity and food security for smallholder farmers, many of whom are economically disadvantaged.
At the heart of Jaguza’s offerings is the Jaguza Livestock App, an innovative platform that integrates artificial intelligence, computer vision, and the Internet of Things (IoT) to improve livestock management.
The app is designed to function on multiple platforms, including mobile (Android, Windows, iOS), SMS, USSD, and web, ensuring accessibility for users in various environments, including those with limited internet connectivity. This versatility allows farmers to monitor their livestock effectively, regardless of their technological infrastructure.
The Jaguza Livestock App boasts several advanced features aimed at improving animal health and productivity. It enables farmers to monitor key health metrics such as heart rate, respiratory rate, blood pressure, and digestion, facilitating early diagnosis of potential health issues.
The app also sends alerts when animals exhibit signs of distress or when they stray beyond designated areas. Additionally, it provides real-time information on temperature variations for each animal, helping farmers to respond promptly to health concerns. By identifying the nearest veterinary officers, the app ensures that farmers can access timely assistance when needed.
Since its inception, Jaguza has made significant strides in the agricultural sector. By March 2021, the Jaguza Livestock management system had registered over 18,000 users, with a remarkable 80% of them actively consulting the app on a weekly basis. The platform has expanded its reach to over 8,000 farms across 13 countries, demonstrating its effectiveness and appeal among livestock farmers.
Jaguza’s innovative approach has garnered recognition and accolades within the agricultural technology space. The startup has received several awards, including the Acia Award from the Uganda Communications Commission in 2017 and the Commonwealth Telecommunications Organisation’s youth innovation e-agriculture award in 2016.
Furthermore, it was honoured with the International Telecommunication Union Telecom World Entrepreneurship Award in 2015 and ranked among the top 9 agriculture projects in Africa by the Technical Centre for Agricultural and Rural Cooperation that same year.
The impact of Jaguza extends beyond mere technological innovation; it embodies a vision of empowerment for rural communities. By providing farmers with the tools and knowledge needed to enhance their livestock management practices, Jaguza contributes to lifting smallholder farmers out of poverty and improving their livelihoods. The app not only facilitates better decision-making but also fosters a sense of community among users, enabling them to share best practices and support one another in their farming endeavours.
Jean-Paul Nageri. (Founder of KaFresh).
Jean-Paul Nageri is the founder of a biotech startup, KaFresh, alongside Trevor Siu. KaFresh aims to revolutionise food preservation in Africa by minimising post-harvest losses. The idea for KaFresh was born when Nageri’s father lost over an acre of bananas due to spoilage in 2020. As a graduate of Bachelor of Science in Agricultural Science and Entrepreneurship from Uganda Christian University (UCU), Nageri was tasked with finding a solution to this pressing problem.
After conducting research, Nageri discovered that certain fruits like oranges tend to last longer than others like avocados. This led him to develop KaFresh, a plant-based organic powder that forms an edible coating to slow down the rate of respiration and maintain the quality of fresh produce. The powder is mixed with water and sprayed on fruits and vegetables to significantly extend their shelf life at room temperature.
The problem KaFresh is addressing is massive. According to the Uganda Bureau of Statistics, up to 40% of food crops are lost due to spoilage post-harvest each year. Across Africa, the issue of food waste is even more severe. It’s estimated that Africa struggles with a billion-dollar food waste problem, with a lot of the food produced being wasted after harvest because farmers lack affordable and efficient ways to keep it fresh.
KaFresh has shown promising results in trials, increasing the lifespan of tomatoes to one month, sweet potatoes to three months, avocados to two months, and bananas to one month among others. The startup has conducted trials with two of the largest fruit and flower exporters in Uganda and Kenya yielding positive outcomes. KaFresh is also being adopted by exporters to preserve larger quantities of produce as they move across countries.
With its ability to extend the shelf life of fresh produce by 2-4 times at a fraction of the cost of cold chain storage, KaFresh has the potential to significantly reduce post-harvest losses and improve food security in Africa. As Nageri and his team continue to scale their solution across the continent and globally, they aim to turn surplus food into exports instead of waste, making a meaningful impact on the lives of farmers and consumers alike.
Naika Enock Julius. (Founder of Famunera).
Naika Enock Julius founded Famunera in 2016. The startup is focused on revolutionising the agribusiness sector by leveraging technology to create a digital marketplace. Its primary goal is to connect farmers with essential agricultural inputs, support services, and potential buyers of their produce.
This digital platform aims to streamline various aspects of agribusiness, making it easier for smallholder farmers to access resources that can enhance their productivity and profitability.
The core problem Famunera addresses is the inefficiency and lack of transparency in the agricultural supply chain. Many farmers in Uganda face challenges such as access to quality inputs, financing, and reliable markets for their produce.
Famunera tackles these issues by providing a platform that ensures farmers can source genuine agricultural inputs from verified suppliers, thereby reducing the prevalence of counterfeit products. Additionally, the platform facilitates access to affordable financing options, which are crucial for farmers looking to invest in their operations.
Famunera’s offerings include supply chain management, source traceability, and market linkages. By digitising these processes, the startup not only enhances the operational efficiency of agribusinesses but also ensures that farmers can trace the origin of their inputs, fostering trust and accountability in the market. This approach not only benefits the farmers but also contributes to the overall improvement of the agricultural ecosystem in Uganda.
Since its inception, Famunera has experienced significant growth and impact. The startup has expanded its reach beyond Uganda, establishing connections with international markets, including the UAE. This expansion highlights its potential to influence the global agribusiness landscape by promoting sustainable practices and ensuring that smallholder farmers are integrated into larger supply chains. The startup’s innovative solutions have garnered attention and support, positioning it as a key player in the agritech sector.
Serubiri Joseph Uhuru. (Co-Founder of eMaisha Pay).
Serubiri Joseph, Jovan Mutesasira and John Kiwanuka are the founders of eMaisha Pay, a neobank for Africa’s 250m farmers. eMaisha Pay is a financial technology startup focused on enhancing financial inclusion for micro and small agribusinesses across Africa.
The startup aims to provide accessible financial services through a mobile application and prepaid card, specifically designed for the unique needs of agribusinesses.
The startup was established to address the challenges faced by smallholder farmers and agribusinesses, particularly in Uganda, where traditional financial institutions often overlook these segments due to their lack of collateral and formal credit histories.
The primary mission of eMaisha Pay is to equip smallholder farmers and agribusinesses with the necessary financial tools to build resilient and sustainable food systems.
The platform serves a diverse clientele, including agro-input retailers, commercial farmers, food processors, and other agriculture service providers, all of whom typically generate monthly revenues between $500 and $5,000.
By leveraging technology and alternative credit scoring methods, eMaisha Pay enables these businesses to save, transact, and access non-collateral capital, thereby fostering growth and stability within the agribusiness sector.
As of now, eMaisha Pay has not publicly disclosed the exact number of clients or farmers using its products. However, the startup is focused on reaching a significant portion of the estimated 250 million smallholder farmers across Africa.
The company has established partnerships with various stakeholders including Fintech, Interswitch to enhance its service offerings and expand its reach, although specific figures regarding the number of partnerships have not been detailed in the available information.
One of the major problems eMaisha Pay addresses is the limited access to financial services for small agribusinesses, which often rely on cash transactions and have difficulty obtaining financing from traditional banks.
By providing a platform that simplifies financial transactions and offers tailored financial products, eMaisha Pay aims to empower these businesses, enabling them to thrive and contribute to the economic development of their communities.
The company operates on a transaction-based revenue model, earning fees from each transaction made through its platform. This model, combined with potential investments, positions eMaisha Pay to scale its operations and continue making a positive impact on the agribusiness landscape in Africa.
Joseph Ogwal. (Founder of Agro Supply).
In 2018, Joseph Ogwal founded Agro Supply. Agro Supply is a Ugandan startup aimed at improving the livelihoods of smallholder farmers through innovative agricultural solutions.
The company was established with a clear mission: to alleviate poverty among farmers and enhance Africa’s capacity for self-sufficiency in food production. AgroSupply operates primarily in Northern Uganda, West Nile, Eastern Uganda, and the Karamoja regions, focusing on climate-smart agriculture and financial inclusion for farmers.
Agro Supply is committed to empowering smallholder farmers in Africa by providing access to quality agricultural inputs, financial services, and training. The company has developed an innovative save-to-buy layaway model using mobile technology, enabling farmers to purchase seeds, fertilisers, and other inputs in small increments without relying on credit. This approach helps farmers build resilience and adapt to the challenges posed by climate change.
Agro Supply sources its inputs from reputable seed companies and conducts extensive research and development to ensure the quality and climate-resilience of its products. The company also offers digital and on-farm training to farmers, covering modern farming techniques and tailored planting recommendations. By connecting farmers with agri-inputs and financial services providers, Agro Supply aims to create a sustainable and resilient food system.
Since its inception, AgroSupply has achieved remarkable growth. The company started with just 20 farmers and has expanded its user base to over 20,000, with approximately 48% of these being women. This growth reflects a year-on-year increase of over 50%.
Additionally, the revenue generated by Agro Supply has also been on the rise, with estimates suggesting a similar growth rate. The innovative solutions provided by Agro Supply have led to significant improvements in crop yields, with farmers reporting increases of up to 90% in certain crops like maize and sunflower, translating into an additional profit of about $55 per acre per season.
The success of this model is evident in Agro Supply’s rapid growth, with revenue increasing from $150,000 in 2019 to $2.29 million in 2022, earning the company recognition as the 13th Fastest Growing Company in Africa in 2024.
Agro Supply has also been recognized for its impact and potential for growth, having secured funding from the Catalyst Fund. In early 2023, the company received a $200,000 investment as part of a larger initiative aimed at supporting startups that enhance community resilience to climate change.
This funding is part of a broader $30 million investment fund designed to foster innovation in various sectors, including agriculture. The support from the Catalyst Fund not only provides financial backing but also offers personalised assistance to help Agro Supply scale its operations effectively.