AGRF Deal Room 2021: Pathways to attracting impactful investments in Uganda
CASA’s Investor Summit at AGRF’s Deal Room
The session presented and discussed the process that led to and the recommendations that emerged from the action plan developed during CASA’s Agriculture Investment Summit in Uganda. The summit was an action orientated event that facilitated discussions between investors, investment stakeholders and policy makers around the key challenges and bottlenecks faced for investing in agriculture in Uganda.
Panelists offered recommendations for other countries to follow a similar approach to facilitating a consultative process for identifying and addressing agricultural investment constraints in their home countries. Additional details about the process and outcomes was reflected in the publication, A collaborative approach for government and investors to unlock investment opportunities.
|(3’)||Welcome by Alice Chapple
|Introduction to CASA and CASA’s Investor Summit at AGRF’s Deal Room|
|(10’)||Mathias Hague, CASA
|Presentation of thought leadership paper and recommendations|
|Presentation of action plan for addressing issues around forms of capital|
|(7’)||Mahmood Hudda, Mairye Estate
|Presentation of action plan for addressing issues around enabling environment|
|(7’)||Jasmin Hidanovic, AgDevCo
|Presentation of action plan for addressing issues around technical assistance requirements|
|(7’)||Peter Mulira, Uganda Investment Authority
|Presentation of plans and commitments by the Uganda Investment Authority|
|(4’)||Alice Chapple||Wrap-up of key takeaways|
Pathways to attracting impactful investments in Uganda
A chance meeting at AGFR in 2019 led to CASA working with the Uganda Investment Authority to explore what changes in policy and resource allocation could help attract investment into the agricultural sector
In July 2021 CASA facilitated an Agriculture Investment Summit in Uganda in partnership with the Uganda Investment Authority and AGRA and stakeholders interested eager to explore how policy and practice could open-up investment in agriculture in Uganda. Prior to the summit CASA had undertaken a series of frank conversations with investors and other stakeholders. This process also led to investor champions being recruited who became the spokesperson for the working groups at the summit.
The investor champions joined the AGRF to set out the case for government action.
Alice Chapple, Impact Investment, represented David Wangolo of Pearl Capital who was investor champion for forms of capital; Mahmood Hudda, Mairye Estate Uganda, was investor champion on enabling environments; and Jasmin Hidanovic, AgDevCo was investor champion on Technical Assistance; Mat Hague, CASA, Presentated of thought leadership paper and recommendations.
Peter Mulira from the Uganda Investment Authority set out a five-point action plan. These five actions represent a speeding up of the evolution of Uganda’s investment climate:
1. Making agricultural finance more accessible to SMEs and smallholders
The Uganda Investment Authority supports alternative financing for SMEs (private equity / venture capital financing through an annual conference) and has arrangements in place to connect SMEs to the Uganda Development Bank. The country has also introduced an agricultural insurance scheme.
Immediate action: The Uganda Investment Authority will work with Uganda Development Bank the Uganda Banks Association and the Ministry of Finance to establish the impediments faced by banks trying to access Agricultural Credit Guarantee Scheme and find a way forward.
2. Centralized database
Funding from the World Bank is supporting the development of a database which can function as a farmer information management system able to drive an e-voucher scheme. The database will also function as an agricultural marketing information system and a basis for statistical modelling.
Immediate action: The Uganda Development Authority will produce a database of small-scale businesses and farmer groups by the end of 2021
3. Developing and enforcing quality standards
The NMS Infrastructure and Integrated Agri-Tech Project is increasing the quality and quantity of agricultural products available to export regionally and internationally. This requires better control and laboratory testing of agricultural produce to ensure international standards are met.
Immediate action: Push ahead with an inter-institutional working group to define a pathway for resolving quality issues
4. Promote the investment one-stop centre
Immediate action: Uganda Investment Authority will develop and implement a communication strategy for promotion of the one stop centre as the single access point for information and service transactions for investors
5. Increasing public investment in market enhancing infrastructure particularly for export focused crops
The Uganda Investment Authority works the Uganda Free Zones Authority creating opportunities for export-oriented investment and job creation. Incentives include tax exemption on income from Argi-processing. Work with the Uganda Export Facilitation Programme is establishing collection, bulking and export facilities.
Immediate action: The Uganda Investment Authority together with the Ministry of Finance, Ministry of Agriculture and other central government partners will identify priority investment needs and costs for agricultural export infrastructure in key commodity and food crops.
CASA will be supporting the Uganda Investment Authority to deliver this exciting 5-point plan. CASA is also able to provide this facilitation service to other national delegations and investor service providers
Supporting documentation: A collaborative approach for government and investors to unlock investment opportunities
Mat is the Research Technical Adviser at the Commercial Agriculture for Smallholders and Agribusiness Programme. He plays a leading role in the development and commissioning of the programme’s research portfolio. He is also the lead author of the thought leadership paper building on the Uganda Agriculture Investment Summit. Mat has almost 20 years of experience working on monitoring and evaluation across the world.
Alice is an economist and a specialist in impact investment and impact assessment. She is CASA’s investment Adviser and she established Impact Value in October 2012. Before establishing Impact Value, Alice worked as Director of Sustainable Financial Markets at Forum for the Future. She also worked as financial analyst, fund manager and social and environmental advisor for the CDC Group. Alice’s current roles include Chair of Investor Watch, Independent Chair of the CDC Plus (Technical Assistance) Committee, Trustee of the Shell Foundation, and member of the Advisory Boards of Sainsbury’s Foundation, Frontier Finance Solutions and Connected Asset Management.
Jasmin is an Investment Manager at AgDevCo, an impact investor investing exclusively in agriculture in Africa. He is part of the Technical Assistance team as well as the West Africa team. He has experience in investment management as well designing, implementing and managing technical assistance projects across the African continent, including in Uganda. Additionally, he is responsible for mainstreaming gender and women’s economic empowerment throughout the project approval process for technical assistance projects. He has an MSc in Finance & Investments from the Rotterdam School of Management, Erasmus University, and is a CFA Charterholder.
H.E. Mahmood Hudda
His Excellency, Mahmood Hudda is the Honorary Consul General of Bangladesh to Uganda. He is currently serving as chairman of the President’s Investors Roundtable on Agriculture. Mr Mahmood is currently the managing Director of Mariye Estates, a family business and farm that exports fresh vegetables and flowers to Europe and USA. He has also served on various Boards, including Diamond Trust Bank and Fresh Handling Limited. He is associated and has been part of establishing various businesses, including Uganda Meat Packers Company, Hub Entertainment, Nyumbani Decor, Great Lakes Food and Mbawo Timber Works.
LEAVE A COMMENT
We welcome your feedback on all CASA events and activities. Please leave any questions or comments below.