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

London, September 15, 2024 — In his address at the UK-Africa Trade Summit, Dr. Samuel Mugasi, Executive Director of the National Agricultural Advisory Services (NAADS), emphasized Uganda's agricultural sector as a prime opportunity for investment, particularly in fertilizer production and value addition. He underscored that these sectors hold immense potential to drive economic growth in Uganda and the broader East African region.

Fertilizer Production: A Vital Opportunity

Dr. Mugasi began by highlighting a key gap in Africa’s agricultural potential. Despite holding 60% of the world’s arable land, Africa contributes only 4% to global agricultural trade. Uganda, while being a net food exporter, is using just 35% of its arable land due to low fertilizer use—only 2 kg per hectare compared to the recommended 20 kg.

“There’s a misconception that African soils are naturally fertile, even reflected in our national anthem,” Dr. Mugasi explained. “But the reality is that many soils are now degraded, limiting productivity.” He called for investment in local fertilizer production to address this challenge, not only for Uganda but for the broader East African region. Currently, most fertilizers are imported from China and Russia, presenting a significant opportunity for regional production.

Value Addition: Unlocking Potential in Agricultural Exports

Dr. Mugasi also emphasized the need for value addition in Uganda’s agricultural exports, which largely consist of raw products such as coffee and tea. By exporting unprocessed goods, Uganda misses out on substantial value. He proposed establishing a tea auction in Kampala, which would allow producers from Uganda, Rwanda, and Burundi to access better prices. Presently, Uganda’s tea is sold through Mombasa, where prices are lower.

He further identified coffee, grains, and milk as high-potential sectors for value addition. By processing these products locally, Uganda could increase its share in global agricultural trade, create jobs, and drive sustainable economic growth.

A Supportive Environment for Investors

Dr. Mugasi assured investors that Uganda provides substantial support for those interested in the agricultural sector. The government offers assistance with land acquisition and tax waivers, and feasibility studies and market data are readily available for various agricultural value chains. He emphasized that Uganda offers a high return on investment, particularly in agriculture, which has already attracted regional and international interest.

Conclusion: The Path Forward for Agricultural Investment

In his closing remarks, Dr. Mugasi reiterated that investments in fertilizer production and value addition would yield significant returns, while also contributing to Uganda's and East Africa's broader economic development. By focusing on these key areas, Uganda is poised to become a leader in sustainable agricultural growth, benefiting local economies and international investors alike.

About NAADS

The National Agricultural Advisory Services (NAADS) is a semi-autonomous body under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) in Uganda, established by the NAADS Act of 2001. Its mandate has evolved over the years, currently focusing on agricultural input distribution, strategic commodity interventions, agricultural chain development, and facilitating farmer access to agricultural financing.