COVID-19 – Prime Time Communications

Out to Lunch

#OutToLunch Business bet: Grow food within 120km of Kampala

By Denis Jjuuko Last week we predicted that most parts of greater Kampala will be urban in 30 years. Before that, Kampala’s population is estimated to grow to approximately 7.5 million people in the next 10 years according to the World Population Review. Urbanization means that they will be less land devoted to agriculture within Kampala’s 40km radius. Yet people still need food. Africa imports food worth approximately US$35 billion a year according to the African Development Bank and is estimated to grow to more than US$100 billion in the next 10 years. This is a result of “population growth, low and stagnating agricultural productivity, policy distortions, weak institutions and poor infrastructure,” says a report by the Food and Agriculture Organisation (FAO), a United Nations agency. Many of African dollar or even shilling billionaires are involved in food. In Uganda, we even import cabbages, onions and such other things! Yet our land is so fertile and the climate still favours agriculture. Uganda has a water body almost everywhere and even if you are to sink a borehole, the water isn’t that deep in most parts of the country. As Kampala expands and its population grows, there will be more demand for food than ever. The government is pushing industrialization as one of the ways to create the elusive jobs. With the internet and advancements in technology, many non-traditional jobs will be created leaving many youths working outside the agriculture sector. As Kampala expands, some people will become middle class. The middle class will demand more organic foods. They also don’t work in the gardens. Over the last few decades, many people have abandoned agriculture preferring to look for jobs in urban areas. The declaration that now some towns are cities will also lead to more people migrating to urban areas in search of jobs. At the end of the day, they will need food. There is a news video circulating online that the price of Matooke, the staple food in many parts of Uganda especially the populous central region has significantly gone down over the last few months. This has been largely attributed to the COVID-19 pandemic. However, the market and generally demand for food is enormous in central Uganda given the way Uganda’s economy is structured and the level of urbanization. One way farmers can cut costs and increase their incomes is by growing food that is needed in a particular market. If, for example, you grow a particular food crop where the market isn’t available it becomes expensive to transport it to the market. Let us take an example of Matooke. If you grow Matooke in western Uganda, the transport costs are enormous to bring it to Kampala where the market is. This means that the farmer will get less as the traders have to factor in the cost of transport. In the news video I referred to above, the farmers in Isingiro say the price of a bunch of Matooke is now between Shs500 and Shs3,000 instead of Shs15,000 on average they were being paid recently. In Kampala, a bunch of Matooke costs between Shs5,000 and Shs15,000 today from about Shs12,000 to Shs30,000 a few months ago. This means that most of the money the farmer could get is now taken by the transport man. With increments in taxes levied on fuel, the farmer will get much less. As you know, our value addition on Matooke is still in its infancy even though there is a factory that is being set up to make flour among other products. So the best bet for a farmer now to increase their profit is to grow food within a radius of about 120km from Kampala. This will cut down the cost of transport significantly and avoid price fluctuations that result in flooding the market. When a farmer is far away from the market, they may not be able to predict the market as they need much more time to bring the product to Kampala. A farmer within 120km of Kampala can easily monitor the market in Kampala and decide whether to bring the Matooke to the market or not since the delivery period is short. In two hours, a farmer can have his Matooke on the market if the plantation is within a radius of 120km. This calls for zoning the country so that farmers whose products are perishable like Matooke grow it near their biggest markets. Produce with a long shelf life can be grown anywhere even though the transport challenges would remain. So for those who are looking for post-COVID-19 business opportunities, growing food within a radius of 120km from Kampala is a smart bet. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 8, 2024

News

#OutToLunch Let people buy their radio sets and face masks

By Denis Jjuuko When COVID-19 struck, the government promised some people food and indeed some households got. It somewhat showed a government that cared for its people even though the distribution was bogged. Even the biggest economy in the world, the United States, gave its citizens something with adults getting checks of US$1200 and children US$600. In Uganda, there were arguments that instead of food, people should have received money on their phones to boost spending to restart the economy. From free food, we were told of free face masks for everyone above six years old. Like it was with food, many people have never received their free face masks. Then last week, the government promised free radio and TV sets to enable kids to learn during the lockdown or enable politicians campaign now that the electoral commission is talking of campaigns carried over the airwaves. Ugandans are supposed to go to the polls next February. The newspapers said 10 million radio sets will be distributed each costing Shs38,000 or approximately US$10. Ugandan governments since independence have run a mixed economy. Providing free medical care in government hospitals and free education. With Universal Primary Education (UPE), a child can study for free up to university. Many farmers today receive agricultural inputs in seeds and other stuff to boost their income. I think some progressive farmers have made significant progress taking advantage of these freebies though the majority have remained dependent on the seeds. A face mask on average in Kampala costs Shs2,000, which is less than a US dollar. Even when the economy has been shut down during the COVID-19 pandemic, we should assume that the majority of people should be able to buy themselves a mask that costs that much. If they can’t and therefore need to be given free ones, then there is a major problem we need to address. There is a famous saying sometimes attributed to the Chinese that posits that it is more important to teach people how to fish than giving them fish. With face masks and free radios and everything free, we are giving people fish when they can fold their sleeves, get on a canoe and catch the fish themselves. If they learn how to fish, they can always get themselves what to eat. If we give them fish, they will be looking at us every few days even when the lake full of fish is just in their courtyard. We have had many poverty alleviation campaigns for many decades now, it is time to assess their impact. If these campaigns have had any impact, we shouldn’t be now thinking about giving out free masks and now free radio sets. Many years ago, people may have lacked TV sets (like they still do today) but most households had radio sets. How come today they must be given free ones? We should campaign less on giving people free stuff rather enable them to afford the basics of life. We should ensure that any household that needs a radio set worth approximately US$10 can have it by buying it themselves. The same applies to the face masks. This can be done easily by creating markets for mainly agricultural produce because the majority of Ugandans depend on agriculture. Many years ago, if you moved into an area where people, for example, grew coffee, you would find either a coffee factory or a store. It meant that people in that area had somewhere to sell their produce. Many people when they needed anything, they could simply present their delivery notes for credit just in case the factories hadn’t paid yet. People took their kids to expensive schools because of coffee and other cash crops. This is something that could be done again. The money that has been spent on free face masks and what will be spent on radio sets is approximately Shs500 billion. There are 134 districts in Uganda today. This means that Shs3.7 billion or approximately US$1 million per district. This is enough money to set up a project at least in one of the district sub-counties that can significantly, if well managed, change the lives of the ‘vulnerable poor’ in that area. If we continue tuning the mindset of the poor that everything will be given to them, nothing will change. The dreams we have of a middle-income country will remain just that — dreams. Of course, there could be people who benefit when people are so poor but we should not forget that the poor are the same people who will be used to challenge those who are currently benefiting from them. The writer is a communication and visibility consultant. djjuuko@gmail.com

June 25, 2020