Poverty in Uganda - Agripreneurship the only way out!

Steve Umeme(Pictured) - The author is a start-up agripreneur

It is possible for Uganda to get out of poverty, just like many other countries have done. 

The gist of his thesis is that if we built infrastructure, provided information, technology, schools, health and credit to the people, poverty would be a thing of the past.

However, you may wonder why the poverty situation in Uganda remains the same even when the government has -in most part- provided the parameters i have mentioned!

Certainly, some achievements have been made in Africa.  For example, it took Europe almost a century to deal with the problem of infant mortality whereas it has taken Africa less than 50 years to halve the problem(source: USAID)

On the whole, however, Uganda has no excuse to remain poor.  In fact Uganda can even do better than the Chinese, who moved 300 million people out of poverty within ten years. 

Let's see how we can do this through agriculture, which is still the most important sector in our part of the world.  It employs more than 70 per cent of Uganda’s rural population and contributes in excess of 30 per cent of GDP in many countries.  

PORTABLE DRIERS

Despite its importance, farmers still lack information on markets and on how to improve their productivity. Post-harvest waste is still upwards of 30 per cent of produce and there is virtually no value-addition taking place.   

Improving productivity, reducing post-harvest loss, better linkages to markets, and a little bit of value addition could lift millions of people out of poverty.

Steve Umeme(Pictured) - over-reliance on rain kills agrics. try controlled environment farming(greenhouse) or irrigation farming

For instance, If we make pulp from fruits and delay their consumption, we can even-out supply for the entire year. There is often a desperate race to save matooke before they go bad, yet farmers can make pastry, puree, soap, and juice. Bananas can also be dried and used as additives to cereals, thereby maintaining their value at all times. 

On other produce, especially cereals, there must be genuine effort to improve on inefficiencies around post-harvest losses. Portable cereals driers(there is already a prototype in the market) can be transported on motorbikes to various homes to dry cereals and avoid wastage. 

More importantly, we must develop micro-storage facilities to replace traditional granaries and prevent the development of aflatoxins.

MICRO SOLUTIONS FOR FARMING

These changes can spur new rural enterprises that will provide jobs while helping farmers to retain the value of their produce and even reduce the cost of healthcare, due to improved nutrition.

In the past, we dealt with subsistence problems using large-scale solutions, such as huge state-owned storage facilities that are out of reach for most poor farmers.  Micro solutions, which are more similar to the current setup of our farming communities are likely to have a greater impact.

We must also tackle one of the most misunderstood fallacies of development, that we can simply replicate advanced technologies from developed countries and succeed.

Development must proceed from a known position and change incrementally to the desired position. While much of Asia moved ahead through copying, they did it while going through their own learning curve through to innovation.

We should not expect to wake up one day and make a mobile handset if we have not toyed around with it or tried to copy those whose patents are in the public domain.  Good collaborations, which allow knowledge transfer and new, innovative enterprises to emerge and absorb greater numbers of the unemployed, are however critical. Forget the current state where expatriates are hired without a plan for capacity building for locals!!

STUBBORNLY HIGH BIRTH RATE

When Nelson Mandela said that “Education is the most powerful weapon which you can use to change the world” he must have reflected on the massive problems that faced blacks in South Africa and most of Africa. 

Education indeed enables us to ask the right questions, to explore, and to be curious and above all, be who we are.  Curiosity dictates, however, that some beliefs and habits be dynamic and change with the times.

In many cases, Africa is held back by the static beliefs and habits of yesteryear.   Uganda's future success depends on how we collectively subscribe to new forms of normative values.

For example, advanced countries have fewer number of children per woman and have a higher quality of life that guarantees high life expectancy.  Child mortality in Africa today is better than it was in most developed countries when their development was at Africa’s current stage.

The trouble is that Uganda’s birth rate remains high, despite the fact that mortality rates have dropped.  Our poverty situation will only improve if childbirth changes in response to improved mortality rates.

In Uganda today, women with below primary school education have an average of eight children per woman and their economic status is abject.  For women who have finished high school, the average number of children drops to five and they are relatively poor. 

When women finish college, however, the average number of children drops to three per  woman and in terms of class, on average they fall within lower middle income.   

There is therefore a correlation between education, number of children and poverty levels.  In other words, if we want to eliminate poverty, educate women. 

AFFORDABLE, ACCESSIBLE CREDIT

It is proven that with access to affordable credit, poverty is minimized and in many parts of the world, employment is created. Muhammad Yunus, a Bangladesh social entrepreneur, won a Nobel Peace Prize for leveraging credit through Grameen Bank of Bangladesh to reduce poverty

African governments have the resources to replicate some of these successes but, consume much of their resources in bureaucracies that duplicate services.  In Kenya, the Uwezo Fund, the Women Enterprise Fund and other donor-funded programmes duplicate each other.  

All these resources could be channelled to one Bank whose sole mission should be to promote social enterprise in financial services, just like in Bangladesh. 

Credit would also be more meaningful if we developed incubators to nurture micro-enterprises by assisting them identify opportunities, and manage resources and customers.  Through these incubators, we could build collaborations that enable knowledge transfer.

During my 5 year stay in Uganda, I have noted that when someone is very poor or desperate and unemployed, all they think about is survival.

Their immediate need is money. Good advice means nothing.  Politicians and NGOs may have fueled this culture, so that even a sustainable solution may be resisted if no money is not paid to the audience - usually as motivation!

I don’t think people in Europe got handouts in order for them to innovate and eliminate poverty. We would therefore greatly enhance this conversation by suggesting how we can create value in our people without paying them to be helped.

I have noted with gratitude that some of my readers make very constructive comments.  This form of crowd-sourced solution is what will lead to a sustainable solution, and I urge them to please let us continue thinking together.
share this article to the corridors of power. all stake holders and law-makers need to support agriculture - it is the only way out of poverty for the multitudes. 

Kenyans in the diaspora: the labor situation.

One of the major challenges Kenya faces in 2016 is high unemployment.

Vision 2030 requires Kenya to create a globally competitive and adaptive human resource base that can meet the demands of a rapidly industrializing economy. The constitution advocates decent work, where freely chosen productive employment is promoted alongside fundamental rights.

Achieving Vision 2030 depends largely on the availability of a qualified workforce to boost the country’s productivity. Kenya has progressively moved to deal with the unemployment crisis and employ-ability of her youth.

According to the World Bank, Kenya’s unemployment rate has continued to rise from 1995 to date. The problem is compounded by general factors in the Global South, including rapid population growth, low and unsustainable economic growth, structural rigidity and knee-jerk interventions that are poorly coordinated and based on weak institutional and legal framework.

To correct this, the government has strengthened the Industrial Training Authority through the Industrial Training Amendment Act 2011, established the Micro and Small Enterprise Authority to coordinate players in the sector through the Micro and Small Enterprise Act 2012.

The government has transformed many youth polytechnics into centres of excellence, upgraded the existing 15 National Youth Service institutions and also established the Youth Enterprise and Employment Programme.

However, thousands of graduates still remain jobless. According to the Education ministry, about 50,000 graduates are churned out of public and private universities every year, piling onto the number of unemployed youth, estimated to be 2.3 million. Further, The Economic Survey 2014 showed that enrolment in private and public universities rose to 324,560 students, up from 240,551 in 2013. There is an immediate need to address this ticking time bomb.

There is a need to formulate strategies that strengthen linkages between education and industry through research, training and promotion of entrepreneurial culture.

Most importantly, the government should develop a well-structured framework through which Kenya can export its human resources to countries that face labor inadequacy.

Foreign employment provides a lot of benefits to any state. These benefits range from skills transfer, foreign remittances and, of course, a source of livelihood to the migrant workers. It is obvious that Kenyans, like many nationals, have sought employment opportunities abroad. Many of whom are low-skilled workers.

While some get favorable terms and conducive working environments, many others face adverse living and working conditions, human rights violations, for instance in the Middle East. This has been made worse by illegal migration. This informs the need for a well-thought-out Labor Export Policy, through which Kenyans can get good jobs abroad. This can also be complemented by signing and implementing bilateral agreements in labor migration.

Doing so will enhance the safety and comfort of Kenyans in the diaspora, contribute to Kenya's social and economic development, promote Foreign Direct Investment, tourism as well as transfer of skills and technology. This is possible because Kenya has foreign missions across the globe, Diaspora Policy and Consular Policy documents already in place. There is also the opportunity that presents itself in the East African Community that facilitates free movement of people. We need to take advantage of this.

This policy should also be complemented by an effective Public Employment Service, which will facilitate job search, job matching and at the same time reduce unemployment. The private agencies, some of which have become unscrupulous, should be regulated and well-coordinated through proper and relevant laws and regulations.

Having strategic Kenyan missions and deploying labor relations attaches to key destinations such as Saudi Arabia, the UAE, Qatar, South Sudan and South Africa will help monitor the progress of migrant workers and implementation of agreements. They will also formulate and implement policies on employment of expatriates, as well as develop foreign skills inventory and data bases! this will in turn enhance capacity building back home!

Back home, the government should continue enhancing the role of youth in agribusiness. This creates self-employment and more jobs. The government should also continue revitalising and equipping youth polytechnics and train youth at subsidised fees. This will enhance their capacity to work in the youth empowerment and public works programmes as Kenya intensifies its infrastructural development agenda.