Dr. Mugasi Calls for Investment in Fertilizer Production and Value Addition in Uganda’s Agricultural Sector

London, September 15, 2024 — At the UK-Africa Trade Summit, Dr. Samuel Mugasi, Executive Director of the National Agricultural Advisory Services (NAADS), delivered an impactful address highlighting the vast investment opportunities in Uganda’s agricultural sector, specifically in fertilizer production and value addition.

Fertilizer Production: A Vital Opportunity

Dr. Mugasi pointed to a critical gap in Africa’s agricultural potential. Despite possessing 60% of the world’s arable land, Africa contributes only 4% to global agricultural trade. In Uganda, only 35% of arable land is being utilized, partly due to low fertilizer usage, at just 2 kg per hectare compared to the recommended 20 kg.

“There’s a misconception that African soils are naturally fertile, but many are now degraded, limiting productivity,” Dr. Mugasi explained. He called for investment in local fertilizer production to reduce reliance on imports from China and Russia, creating a lucrative opportunity for regional manufacturing.

Value Addition: Unlocking Potential in Agricultural Exports

Another key investment area identified by Dr. Mugasi is value addition. Uganda, like many African countries, exports raw agricultural products such as coffee and tea, limiting the value generated from these industries. He proposed establishing a tea auction in Kampala, enabling Ugandan, Rwandan, and Burundian producers to access better prices, compared to the current reliance on the Mombasa auction.

In addition to tea, Dr. Mugasi highlighted coffee, grain, and milk as high-potential sectors for value addition. By processing these products locally, Uganda could significantly increase its share of global agricultural trade, creating jobs and driving economic growth.

A Supportive Environment for Investors

Dr. Mugasi assured investors of Uganda’s robust support system, including land acquisition assistance and tax waivers. He also emphasized the availability of feasibility studies and market data across various agricultural value chains, helping to ensure informed investment decisions. Uganda’s high return on investment in agriculture has already attracted regional and international interest.

Conclusion: The Path Forward for Agricultural Investment

In his closing remarks, Dr. Mugasi stressed that investments in fertilizer production and value addition would not only yield significant returns but also contribute to regional economic development. By focusing on these key areas, Uganda is poised to become a leader in sustainable agricultural growth, benefiting both local economies and international investors.