Development Planning Unit, University College London 1st June, 2007

FINAL REPORT

Field Trip to Mbarara, Uganda, 2nd May 15th May, 2007

The Success and Failure of Poverty Reduction in Uganda: A Focus on Trade, with Special Reference to Small Businesses in Mbarara Town and District and their Link to Poverty Reduction

TEAM ONE Stefan Feuerstein Jonathan Howells Chukwudum Muoneke Arese Ogiemwonyi Vasilis Stouraitis Michael Ugwu

This report is written by postgraduate student-consultants after a two week research trip to Uganda. Research was based on desk research and pre-fieldtrip preparation prior to arrival in Kampala and fieldwork in both Kampala and Mbarara. Our main area of focus has been an exploration of the role and potential of trade, with special reference to small enterprises, in poverty reduction. Since a majority of the poor in Mbarara are engaged in agricultural activities our area of research has been centred on matooke (banana) farmers. Our primary purpose has been to gain an improved understanding of the factors behind Ugandas early success in poverty reduction and the apparent recent reversal of this process -- Terms of Reference p.2

Workload has been distributed as follows:

Background: Arese Ogiemwonyi

Theoretical Framework: Michael Ugwu

Mission Scope and Objectives: Jonathan Howells and Vasilis Stouraitis

Methodology: Stefan Feuerstein (Project Manager)

Institutional Landscape: Chukwudum Muoneke

Findings and Recommendations: Teamwork

Table of Contents:

Acknowlegements.p. 5 Acronyms...p. 7 Map of Uganda..p. 8

PART ONE: INCEPTION REPORT

1. Background..p. 10 2. Theoretical Framework .p. 12 3. Mission Scope and Objectives....p. 18 4. Methodology.p. 22 5. Institutional Landscape...p. 25

PART TWO: FINDINGS AND RECOMMENDATIONS

6. Key Findingsp. 29 7. Areas of Future Research...p. 31 8. Strategy Guidelines..p. 34

9. Appendices.p. 35 9.1 Appendix I: Interview Questions and Guidelines............p. 35 9.2 Appendix II: Stakeholder Analysis......p. 37 9.3 Appendix III: Interviewed Individuals Involved in Matooke..p. 41 9.4 Appendix IV: Trade Relationships in the Sale of Matooke.p. 42 9.5 Appendix V: Matooke Farmers in the SLF..p. 43 9.6 Appendix VI: List of Interviews......p. 44

10. Bibliography..p. 46 4

Acknowledgements The production of our report and its recommendations owe much to the help and support of various individuals both in and outside Uganda. Before the field-visit we were fortunate enough to have the pleasure of several lectures at the Development and Planning Unit to introduce the case study. Therefore we would like to graciously thank Dr. William Lome, Prof. Michael Twaddle and our own Mr. James Oporia-Ekwaro. Firstly, we would like to thank Prof. Mutebille, Governor of the Bank of Uganda, for his most interesting comments regarding the PEAP and decentralisation in Uganda. Our visit to the Economic and Social Research Centre at Makerere University, Kampala, involved lectures and discussions with several academics. We would like to thank these gentlemen for their thoughts and for answering our questions most diligently. Whilst visiting the Centre for Basic Research, Kampala we were privy to a valuable discussion and tour of the facility. We would like to thank the institution for this opportunity and the use of their resource library. Thanks are also extended to Dr. Richard Edwards, deputy-director of DFID Uganda. At Uganda Martyrs University, Nkozi, a most informative lecture on decentralisation and the PEAP was heard from which we benefited and are very grateful for. We would like to warmly thank our hosts in Mbarara Town, Mbarara University of Science and Technology, for their hospitality and support before and throughout our visit to the district. Special thanks are extended to the Faculty Dean of Development Studies and to Dr. Charles Tushabomwe-Kazooba. To our guide in Mbarara, Mr. Lestedio Mujuni, a special consideration goes out for coordination of our visits to local stakeholders and markets etc. Thanks very much for making our experience an informative and enjoyable one. With regards to the farming enterprises visited, warmest thanks are extended to the manager of Thorntree Farm Mr. Appolo. Also to Mrs. Teobista for her time and hospitality and to the fellow matooke (banana) farmers, that we met through her, in Nyakayojo sub-district. Thanks also to the market traders and middlemen that we interviewed at Mbarara central Market and Ruti Matooke Market. Our time in Mbarara involved interviews with many local stakeholders, both public and private, to further our understanding of our focus area. Therefore we would like to warmly thank Dr. Kasiisi, district coordinator of Mbarara District Farmers Association (MBADIFA), National Agricultural Advisory Services (NAADS) coordinator Dr. Berinda, Dr. Reuben Geoffrey, director of Jemuco Enterprises (a NAADS sub-contractor), Mr. John Kaganzi, vice-president of Uganda National Chamber of Commerce, Mr N. Wycliffe, manager of Ankole Farmers Association, and Mr. Moses Lubemba at UGAFODE Ltd, a micro-finance institution. 5

We would also like to thank several Mbarara local government officers namely; Mr. Kabarega (dist. agricultural officer), Ms. Beatrice Byarugaba (dist. production and marketing officer) and Mr. Amon Mutabarara (dist. commercial officer). Thanks again for your time and hospitality. Many thanks to Ms. Yukiko Fujimoto for her logistical support both in London and in Uganda. Last, but by no means least, we would like to thank kindly our supervisors Dr. Julio Davila, Dr. Zeremariam Fre, Mr. Michael Walls and Dr. Le-Yin Zhang for their support and guidance throughout the course of our research.

ACRONYMS

BoU CSO DFID IFI MFPED M.U.S.T. NGO PEAP SAP SLF WB

Bank of Uganda Civil Society Organisation Department for International Development International Finance Institution Ministry of Finance, Planning and Economic Development Mbarara University of Science and Technology Non-Governmental Organisation Poverty Eradication Action Plan Structural Adjustment Policies Sustainable Livelihoods Framework World Bank

Map of Uganda

Source: www.maps.com

PART ONE
Inception Report

1. Background

Uganda has experienced strong economic growth averaging 6.5% per annum since 1991/92. However, recent evidence indicates that although Uganda is still experiencing economic growth, poverty reduction is in decline. Some argue that this lack of pro poor growth could partly be attributed to the changing structure of the economy (Kappel et al 2005) as the share of agriculture fell from 51% in 1991/92 to 39% in 2002/3 (PEAP,2002).

Although the World Bank considers Uganda a successful case of structural adjustment policies in Africa, the fact that 50% of the budget is dependent on international donors raises questions about the sustainability of Ugandas economic growth.

In order to transform Uganda into a modern economy in which people in all sectors can participate in economic growth, the government has formulated a poverty eradication action plan which guides the formulation of government policies. (PEAP, 2002).

The PEAP indicates that absolute poverty in Uganda in 2002/3 was measured to be 37.7%, indicating that this proportion of the population was living below the poverty line. For the purpose of this project, Poverty is defined as deprivation in the most essential capabilities of life, including leading a long and healthy life, being knowledgeable, having adequate economic provisioning and participating fully in the life of the community (UNDP, 1997).

This report focuses on the role of trade and small enterprises in poverty reduction within Mbarara, Uganda. For the purpose of this project we define small enterprises as entities involved in trade who employ less than 15 people. Our focus area based on this definition of small enterprises will be matooke (banana) farmers who sell their produce either directly to the market, via cooperative groups or via middlemen.

The decision to focus on matooke farmers is based on several reasons. A key reason is the large proportion of the poor engaged in the agricultural sector within Mbarara. Therefore in order to achieve pro poor growth, emphasis must be placed on growth in this sector (Kappel et al, 2005). On the other hand, there are some limitations to this 10

rationale such as the fact that the agricultural sector is often affected by external factors such as droughts and price shocks which cannot be controlled.

In addition, the relatively high demand of bananas coupled with large resources of the fruit/crop in Mbarara gives it market potential. Mbarara district is the leading

producer of matooke in Uganda (District Information Portal). Strategically, Mbarara lies on the trade route between Rwanda and the Democratic republic of Congo. This regional market can enhance the potential benefits of matooke trading to the local farmers. Moreover, there is the potential for other spin off small scale businesses such as transportation, processing and storage.

In order to reduce poverty, it will be important to enhance the productivity of trade and small enterprises. However, there are several issues that hinder the ability of banana farmers to capture the potential benefits of their produce. These problems include inadequate access to finance, lack of entrepreneurial and management skills, poor infrastructure and weak support groups (i.e. trade associations).

A key issue affecting the incomes of the matooke farmers is their position in the matooke trade relationship. The value chain in this line of business is such that the farmers sell to the middle men who come to the farm gate to buy matooke and the middle men take the matooke to the market to sell to the traders. The middle men sell the matooke at more than triple the price of purchase, thereby capturing a larger amount of profit that might have been gained by the farmers themselves. The structure of this relationship has a somewhat negative effect on the matooke farmers because of the exploitative practices of the middle men.

This report intends to explore the possibilities of building up the assets of these small traders so that they can maximise their potential trade.

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2. Theoretical Framework

a. Ravallion model b. Sustainable Livelihoods Framework

a. Ravallion Model (Ravallion, 2005)

Within development circles, there is an emerging consensus that economic growth alone is insufficient for poverty reduction. Within this debate policies focused on inequalities (the redistribution of income and assets, as well as participation in the formulation and implementation of development plans) is of growing importance.

The focus of this framework (Figure 1) is on the relation between poverty reduction, economic growth and inequality. Poverty reduction is argued to be determined by both economic growth and the growth elasticity of poverty reduction, which in turn is determined by both the initial levels of poverty and the distributional change resulting from implemented policies. Following the chain downwards, one can see that the distributional change will depend on both external factors (such as SAPs) and internal factors (such as the sectoral approach of development policies, or the provision of public services). Figure 1: Ravallion Model REDUCTION IN ABSOLUTE POVERTY

Economic Growth

Growth Elasticity of Poverty Reduction

Initial levels of Inequality

- Depends on history

Distributional change/ change in inequality

External Factors
- SAPs - External shocks

Internal Factors
- Sectoral Focus - Education programs - Pro-poor policies - Credit Institutions - Participation - etc.

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As Structural Adjustment Policies imposed on Uganda determine, to a certain extent, the internal policies that can be pursued by the Ugandan government, we have added a connective arrow to the model, leading from External Factors to Internal Factors.

b. Sustainable Livelihoods Framework

The sustainable livelihood framework (SLF) adopted by the Department for International Development (DFID, 1999a, 1999b) can be used to help understand the complex nature of livelihoods.

It is important to define sustainable livelihoods. For the purpose of this analysis we will draw on the definition provided by Scoones.

A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base (Scoones, 1998, p. 5).

In the context of this study the SLF identifies that small enterprises are constrained on many levels - by the vulnerability context, transforming structures and process, and a lack of livelihood assets in achieving livelihood outcomes (Table 1 - list of constraints, p. 10).

This SLF approach (Figure 2, p. 10) identifies that livelihood outcomes are influenced at both a macro and micro level. At the macro level the livelihoods of small

enterprises are determined by the vulnerability context and transforming structures and processes. The Vulnerability Context constitutes the external environment in which small enterprises exist. Trends, shocks and seasonality fundamentally affect livelihoods and assets. Small enterprises have limited or no control on this external environment. Structures and Processes are the institutions, policies, organisations and legislation that characterise livelihoods. Policies and institutions found within Transforming Structures and Processes have a great influence on assets. They create assets; give access to assets and influence asset accumulation. It must be stated that the transforming structures and processes is a two way relationship as greater asset 13

endowment within small enterprises leads to greater influence within transforming structures and processes (DFID, 1999b). At the micro level livelihoods are the result of livelihood assets based on physical, human, natural, financial and social capital and livelihood strategies (the economic activities entrepreneurs choose) (DFID, 1999a).

The SLF argues that access to livelihood assets enables entrepreneurs to overcome some of these constraints, and achieve sustainable small enterprises. The

Vulnerability Context lies furthest outside a small enterprises control. This means that little can be done to alter it directly. In any case some change within the Vulnerability Context is the outcome of activity at within Transforming Structures and Processes, such as Government policy. For this reason this research document focuses on the latter.

Table 1 Identified pressures experienced by small enterprises in Mbarara

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Figure 2: Sustainable Livelihoods Framework

Source: DFID Sustainable Livelihoods Guidance Sheets April 1999 http://www.livelihoods.org/info/guidance_sheets_pdfs/section2.pdf Accessed 22/05/07 at 18.35pm.

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For this analysis we have chosen to combine both frameworks1 (Ravallion & SLF Figure 3, p. 12) to better understand and identify the issues affecting poverty reduction in Mbarara, Uganda, with relation to small enterprises. The Ravallion model presents an overall framework for poverty reduction. The SLF allows us to focus on internal and external factors affecting distributional change/ changes in inequality, which should have a positive effect on the growth elasticity of poverty and thus poverty reduction. In sum it is our belief that adjustment of these internal and external factors, affecting the vulnerability context and structures and processes in favour of small enterprises will increase poverty reduction.

Each framework focuses on poverty reduction in a different manner. The Ravallion Framework focuses on statistical measurement based poverty reduction whilst the SLF analyses the multidimensional nature of poverty incorporating a dynamic people based assets approach. Frameworks are combined for illustrative purposes only.

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Figure 3: The Ravallion Model and the Sustainable Livelihoods Framework REDUCTION IN ABSOLUTE POVERTY

Economic Growth

Growth Elasticity of Poverty Reduction

Initial levels of Inequality

- Depends on history

Distributional change/ change in inequality

External Factors
- SAPs - PRSPs - External shocks.

Internal Factors
- Sectoral Focus - Education programs - Pro-poor policies - Participation - Security - Credit Institutions etc.

VULNERABILITY CONTEXT*

TRANSFORMING STRUCTURES AND PROCESSES**

Sustainable Livelihoods Framework

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3. Mission Scope and Objectives (1,198) Vasilis Stouraitis and Jon Howells

PART I. VASILIS STOURAITIS Through interaction with local traders in Mbarara district and visits to marketplaces we aim to assess the structure of trade and the role of small enterprise in the sector. In doing this it is envisaged that we will gain a greater understanding of how enterprises function and the daily opportunities, challenges and threats that face those individuals involved. Our intention is to focus on the fruit trade, bananas specifically, considering that intensified focus on agricultural production should reduce (income) inequality as detailed in the PEAP (PEAP, 2004, p.51).

The primary objectives of our mission are as follows: To identify the opportunities and constraints faced by small farmers in the Mbarara district and their implication on poverty reduction. Understanding the role that transforming structures and processes and the vulnerability context play in affecting small enterprises.

With regards to vulnerability, natural disasters such as droughts, which can adversely affect crop production by destroying the crops and forcing the farmer and supplier to waste up to a whole season of revenues; internal and external conflict which can occur both in Uganda and neighbouring countries leading to destruction of property and delaying works and crop productions, hence delaying vertical cooperation. In addition, price shocks such as surplus-dumping from other countries may result in adversely high crop prices hindering crop production and sales for traders and their suppliers. Other examples of these could be exchange rate fluctuations, speculation, or a heavy revaluation of the currency may make the local produce unattractive to foreign buyers.

In addition, inflationary pressures such as sudden shocks on the price level and the monetary supply will affect small entrepreneurs, and lower income people, more than higher income groups as proportionately lower income groups have less to save and spend, and fewer assets, hence lowering their demand levels and capacity to meet basic needs.

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Regarding the transforming structures and processes context of the sustainable livelihoods framework, access to technology and technological transfer, even incentives for technological innovation, can be crucial factors for small enterprises in Mbarara aiming to enter and trade in the global value chain or even in the national market. Also, barriers to entry can be overcome as a government policy using subsidies as tools to weaken them, in order to create the incentive for traders to enter various markets and enhance competition and freedom of trade without being constrained by various oligopolistic or monopolistic practices. In addition, protectionist policies can at times protect infant industries and small enterprises at their initial stages of growth in order for them to be able to compete and trade, once ready, in the national markets. They are not always harmful tools aimed against the immiserizing growth.

As far as aid from multilateral and bilateral agencies, NGOs and community based organizations (CBO) is concerned, it can provide substantial financial and technical support with programmes and projects supporting Mbararas traders to achieve a sustainable level of growth and escape poverty through influencing financial capital. This is true especially where they are out of the governments reach, such as in the informal sector, hence could not be qualifying for subsidies and in need of a liaison or a channel to represent them financially or politically.

A key objective will be to enquire as to levels of access to, and the role of, financial institutions in Mbarara district. Supplies of credit will have an important impact on the ability of small enterprises to expand their operations, through improved financial capital, and sustain them in times of trade/agricultural depressions. Micro-finance institutions have been much lauded as providing access to finance for people previously beyond the reach of such assistance.

PART II. JON HOWELLS There are problems to be considered such as the belief that fiscal decentralisation has occurred without necessary technical capacity being in place at ground level (Piron, L-H., and Norton, A., 2004, p.29). It is important, therefore, that we enquire as to current access to, and take-up of, such aid and who administers it (i.e. NGOs or private financiers). In addition, it is significant to assess the marketing and basic business skills of the entrepreneur ie. their human capital. 19

Liberalisation of trade through deregulation and removal of barriers to entry was a key component of structural adjustment in Uganda (affecting for example negatively the dairy industry). In Mbarara district it is likely that reforms relating to this will be well-diffused given the length of time transpired since their implementation and since the district is close to the border and can benefit from international trade Small scale enterprises, in theory, have much to gain from a shrinking of the state sector (Dawson, J, 2002, p. 59) and it will thus be crucial that we identify whether the level of such liberalisation is appropriate to the needs of small traders in the fruit sector and sustainable livelihoods in the region.

Human capacity building, through education and training, can have a considerable impact on the conditions of the local labour market and hence human capital. Where small enterprises are concerned such human capital development should translate into greater technological innovation and improved production capabilities of an enterprise (Kabecha, W. W., 1999, p. 122). Since we have limited knowledge regarding the impact of matooke trading on the lives of small traders, there is the need to gather more information on the structure. It is accepted that the tackling of issues relating to land is necessary to chronic poverty reduction (Chronic Poverty Research Centre, 2005, p.60). Regarding land tenure in Mbarara district, this has its relevance in that producers of agricultural goods may lack security over the land they cultivate. As these are suppliers of small trading enterprises then this has a potential impact on their livelihood if supplies are disrupted as a result of this security issue or a change to the status quo and hence their physical capital. A key objective of our mission therefore is to collect data and conduct interviews which increase our understanding of the current position of matooke traders.

Another objective of our mission is to assess the current provision of infrastructure in Mbarara district so we understand its strengths and shortcomings. Transport infrastructure is key to the success of trading enterprises in that access is a key determinant of costs and market-engagement. Similarly, energy provision may have an effect on how such enterprises do business. Furthermore, the PEAP makes it clear that infrastructure investment is key to increasing output, incomes and competitiveness by linking producers to consumers (PEAP, 2004, p.57). 20 It is

important therefore that our visit to Mbarara involves an assessment of infrastructure so that we can determine its effect on the livelihood of small traders, their physical capital, and suggest areas for improvement/ future research.

Our mission therefore will involve identification of whether these factors are, respectively, having a positive or negative impact on the position of matooke farmers in Mbarara district. An understanding of this will then allow us to make recommendations as to how structures and processes can be impacted to affect poverty reduction in the area.

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4. Methodology

Research Questions

In order to achieve our objectives, three fundamental questions will guide the focus of our field trip:

1. What are the obstacles and opportunities faced by matooke farmers in Mbarara?

There is a vast availability of secondary data in the form of publications, statistics and studies that has dealt with the sustainability and profitability of small businesses (Man, Lau and Chan, 2002, and Tushabomwe-Kazooba, 2006, amongst many others). However, it is critical that this information be complemented with the perceptions and concerns of the entrepreneurs themselves, in order that an unbiased and area-specific picture may be drawn as to the opportunities and obstacles that matooke farmers in Mbarara district face. Only then can alternative approaches to constraints be

developed and opportunities be effectively exploited.

2. What transforming structures and processes must be altered in order to increase the access and influence of matooke farmers?

It is important to determine the extent to which there are conflicts of interest or clashing of priorities between the matooke farmers and the institutions that establish the boundaries on their development possibilities. Crucial here is the identification of exclusionary and exploitative structures that restrict the possibilities of the small businesses, and their alternatives.

3. What are the areas in which further research is required?

Due to the time and resource limits on our field trip, we recognise that it will not be possible to identify all problems in great detail. For this reason, identification of areas requiring further research will be a high priority. Of importance is the collection of data in the field that supports, or indeed refutes, preliminary desk research in order that a greater understanding of the problematic may be developed.

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Research Strategy

There are two principal components to this investigations research. First, secondary information from international donor and national ministry websites, as well as published reports on the region, have been used to narrow the focus of the investigation and to generate a better understanding of the business dynamics of small enterprises. This desk research is then to be complemented by primary and secondary data collected in the field, in principle through interviews with relevant stakeholders and through the acquisition of further grey material from local sources.

Due to constraints on time and the focus of the investigation, one-to-one interviews (as opposed to focus groups) have been selected as the most appropriate means of primary data collection. This allows for more flexibility in the formality/nature of the interview method employed such as structured or semi-structured interviews depending on the individual who is to be interviewed. Furthermore, this approach will allow for the interviews with the farmers to be carried out at the location of their enterprise, thus granting the added advantage of observation of their workplace and more precise estimation of their livelihood assets.

Target Groups

Matooke Farmers:

Through casual interviews, we intend to ascertain the

perceptions of farmers with regard to their access to and influence on transforming structures and processes. Collection of primary data from the farmers is crucial, as secondary data on small-scale matooke farmers is scarce and unreliable, primarily due to the informal nature of their work.

Government Officials: By means of structured interviews we intend to determine the priorities set by the government, including their perceptions on poverty reduction, in order that they can be compared to those of the matooke farmers. These interviews will also serve to acquire information on nascent initiatives, for which there is little available written information.

Financial Institutions: Our desk research revealed that financial capital in the form of credit can play a determinant role poverty reduction (Economist, 2005). Through 23

structured interviews with microfinance institutions and savings and credit associations, we intend to determine the availability/quality of credit streams and the validity of this claim.

NGOs/CSOs/University: Interviews with non-governmental and civil society organisations are aimed to assess the involvement of these entities in supporting small businesses. Our desk research revealed little information about this, so this data must be collected in the field in order that we can ensure a more comprehensive understanding of the situation in which matooke farmers find themselves.

For guidelines regarding questions targeted at the above groups please see Appendix I.

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5. Institutional Landscape

In assessing the importance of actors, we must look at the Poverty Eradication Action Plan (PEAP). Its main actors bear the responsibility for the transformation necessary in Uganda2. Banana Farmers/Traders3: A Majority of the Ugandan population live in the rural areas and are engaged in agriculture thus the need to invest in them. Since there is a good climate for bananas in Uganda, significant comparative advantages exist for the poor to benefit in its production and sale. Kappel et al (2005) informs that crop agriculture was the biggest component of overall poverty reduction in Uganda in the 1990s.4

Middlemen: These people buy the matooke at the farm gate at a very low price from the farmers. They transport this produce to the market where they sell it at more than twice the price (Tumushabe, 2007). The poor, female farmers do need them since they themselves cannot necessarily fill these roles5. Most of the other stakeholders want an elimination of the middlemen. However, there is need to consider incorporating them in a less exploitative manner.

Ministry of Tourism, Trade and Industry: This branch of the central government is responsible for the formulation and execution of policies regarding trade. It uses the district offices in the local to directly influence the local communities. It is supposed to be the overarching branch which provides the management and leadership for trade in Uganda.

Bank of Uganda (BoU): The monetary policy of Uganda has an influence on the value of small trade and its impact on the livelihood of poor farmers. The banks biggest asset seems to lie in targeting and taming inflation; however it is not clear how it aims to increase the benefit to small traders and farmers the gains from relative

For the Stakeholder Analysis chart, please see Appendix 2. This group is disaggregated in the Stakeholder Analysis in Appendix 2. 4 An important factor here is a further integration of farmers in the sale of these bananas to increase the value they capture from it. 5 Due to different factors (significantly cultural), most women would not consider transporting the matooke to the market themselves. During the trip we saw hundreds of middlemen but none of them was a woman. Therefore, for poor female farmers, these middlemen are advantageous.
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macroeconomic stability. Also, its economic liberalisation commitment poses concerns as to the place of small traders.

International Community-Donors: Musevenis embrace of international donors attracted (and continues to attract) a lot of financial aid which constitutes about 50% of the countrys annual budget (Mutebile, 2007). Much of the services directed to the poor derive their funding from aid grants, hence the importance of donors to every district.

Civil Society Organisations (CSOs): Given the limited political space in Uganda, the central government is not clearly accountable to the people in an electoral manner. Therefore, the importance of other broad based organizations in the decision making sphere raises less concerns. This is possible since these CSOs are alternative channels for political expression and also they represent social groups.6 The influence of NGOs is most evident in the case of the unsuccessful NGO amendment bill introduced in parliament place them under the direct control of central government and thus hamper their capacity to influence (Piron & Norton, 2004).

National Agricultural Advisory Services (NAADS):

Established in 2004, this

agency aims to improve the market production of agricultural items as a proportion of the produce of farmers (PEAP, 2004). Its objective is to enhance the value of agricultural production and the resultant increases in resources to farmers. It encompasses both advising for improved farming methods to farmers, research and links to financial resources for farmers.7

The local University- Mbarara University of Science and Technology (MUST): The local university plays an integral part in the innovation of new technical and business practices by which local entrepreneurs can use to improve their revenues. It is important that their links with the local farmers and entrepreneurs is strengthened.

Local Government: This serves as the main avenue which the local small traders could present their complaints and have some form of representation. Its local
Within these, market based associations could flourish if they are established. These organizations which are forms of CSOs clearly present the needs of the local traders. 7 NAADS delegates much of these services to private vendors and through a partnership with farmers groups, pays these vendors.
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presence creates an institutional presence that in theory should be the first port of call for the local people. The local district offices responsible for commerce, production and marketing could be a grassroots mechanism to achieve the objectives of the PEAP. The main duty of the district commercial office is to research ways of helping local farmers and traders take opportunity of regional and international markets. They also strive to advice on policy that would strengthen these objectives. The district agricultural office primarily focuses on the farmers themselves. Lastly, there is the district production and marketing office whose main function is to advise the farmers on better farming methods and also they provide loans to help farmers increase their output.8

Institutional Context

Further analysis through the collection of primary data is essential in this area as secondary sources are insufficient as means for informed and detailed analysis of the power relations and control in Uganda.9 Internal support has been secured through a decentralization effort entrenched and espoused through the Poverty Eradication Action Plan.

Apart from functions related to grouping, the farmers did not really mention the assistance provided explicitly by the local government district offices. 9 However, it is obvious that the violent political history of Uganda confers a measure of legitimacy on the Museveni government. Furthermore, international support for this government has been secured since the government is perceived as a source of stability in the country.

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PART TWO
Recommendations Report

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6. Key Findings

For the sake of clarity and consistency, our findings are categorised according to the five capitals of the Sustainable Livelihoods Framework. This will allow us to identify the direct impact of the various transforming structures and processes on the livelihoods of Matooke farmers in Mbarara district.

Social Capital: The low bargaining power of banana farmers leaves them exposed to the exploitative intentions of middlemen and other actors in the production chain (see Appendix 4). Cultural norms further magnify this problem, as many of the matooke farmers are female, while the overwhelming majority of middlemen are male 10 . While the government has instituted measures and structures to encourage grouping by setting membership of a CBO as requirement for the farmer to obtain technical support mistrust is still strong, hampering cooperation amongst the farmers, to the advantage of the middlemen. Human Capital: There is a significant deficit in entrepreneurial activity11. Only one of the five farmers visited employs value added techniques for their produce 12 . Despite the introduction of a National Agricultural Advisory Service (NAADS), it appears that many of the small farmers do not or can not access these services13. This is primarily due to NAADS selection of its beneficiaries, which is severely restricted due to lack of resources. Furthermore, there were concerns amongst some of the farmers that they did not have the funds to implement the recommendations given to them by NAADS. It was also found that the interaction between the government and

In Uganda, as in many Bantu societies, cattle rearing and dairy farming typically fall under the responsibility of men, while the cultivation of food crops is often left to the women. As most of the middlemen use bicycles for the arduous transportation of matooke bunches from the farms to the markets, both cultural and physical restrictions typically exclude females from this activity. 11 It was highlighted by Julio Dvila during our final presentation on the 30th May 2007 that the profileration of matooke farming in Mbarara district is a recent phenomenon that has taken place over the past thirty years. While this shift may suggest a certain level of entrepreneurial drive on the part of the matooke farmers, our findings suggest that this was based largely on food security needs. To support this, Mr. Kaganzi, Vice President of from the Ugandan National Chamber of Commerce, informed us in an interview on 3rd May 2007 that approximately 70% of matooke production is for household consumption. 12 Mrs. Teobista, using a solar powered drying apparatus, adds value to her produce while simultaneously increasing food security. The banana slices can be preserved for a far greater period of time and fetch higher prices at the market, where they are purchased to be further processed into banana crisps or flour. It is important to note that this apparatus was not provided by the government, but by Farm-Africa under their food security program. 13 According to Dr. Berinda, only 20-30% of farmers in Mbarara are currently accessing NAADs.

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the private service providers employed by NAADs is hampered by slow payments and dissemination of information14.

As the private service providers continue with their work, they ensure a sustainable business model. It is hoped that by successfully implementing their advice to small enterprises, the matooke farmers will eventually through increased productivity be able to afford the services, even in the event of a reduction in government subsides.

Financial Capital: There is a poor savings and spending culture amongst farmers in Mbarara, as there is little reinvestment in business, and any savings are typically consumed or kept under mattresses15. Access to credit is severely restricted due to lack of collateral, and the visited farmers expressed dismay that the credits are not tuned to the needs of agricultural workers16. Despite the apparent demand for credit expressed by the farmers interviewed in our investigation, the Bank of Uganda estimates effective demand for credit amongst rural households to be approximately 21%17. Furthermore, a lack of regulation to ensure non-exploitative credits and to ensure the avoidance of multiple credits with different microfinance institutions creates a high risk of pitfall credits18. A new initiative Baggaggawala or prosperity for all by the government to provide cheap loans to farmers is to be delivered through PostBank. It is, however, too early to assess the effectiveness of this

initiative. It is important to add that farmers are not required to pay taxes on matooke that is sold at the farm gate.

Natural Capital: There is a consensus that land fragmentation acts as a serious constraint on the economic potential of matooke farmers. The intergenerational

transfer of land, especially in large families, reduces the plot sizes available to each individual farmer, with a detrimental impact on their productivity. The traditional land tenure system that is respected in Mbarara prevents the entry of big business in the region. While this currently safeguards the small farmers land rights, an

expressed desire for change towards land titles by some of the actors interviewed is a
14 15

According to Reuben Geoffrey, Director of Jemuco Enterprises, a private service provider. Mr. Tushabomwe-Kazooba, Lecturer in Finance and Budgeting at Mbarara University. 16 Of primary concern were very short grace periods and high repayment rates. 17 This figure is taken from a presentation by prof. Mutebile, Governor of the Bank of Uganda, which took place at the Bank of Uganda on the 3rd May, 2007 18 On visiting poor families in both Kashanyarazi slum in Mbarara and in Bwizibwera Health Centre, our colleagues from Group 5, focussing on the Reality of Poverty, observed that a widespread cause of destitution in the region had been the loss of assets due to default on microfinance loans.

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matter of concern.

Furthermore, the governments preference for supporting

progressive agricultural enterprises appears to be leading to increased inequality amongst farmers. Less productive farmers are seen to be selling their land to these progressive farmers, encouraging rural-to-urban migration.

Physical Capital: Poor infrastructure inhibits the sale of produce by farmers. As Mr. Mukassa Bale, one interviewed farmer, expressed: if we have good roads, we sell if we dont, we eat. The road infrastructure in Mbarara is deficient, hampering access of small farmers to the main thoroughfares to the capital. Furthermore, the Plan for Modernisation of Agriculture aims to improve the technology available to agricultural workers in Uganda. Nonetheless, it appears that the greatest benefits of this initiative are bypassing the poorest farmers.

It is important to note that there is great potential for matooke production in the area. Demand exceeds current levels of supply, indicating that there is tremendous growth opportunity if the poor farmers are able to capture more of the gains.

Future Research

Mistrust between farmers needs to be addressed if cooperative market groups are to be effective. Trust constitutes a key issue as vertical or horizontal networks that increase peoples trust and cooperation simultaneously expands their access to wider institutions. Relationships based on trust and reciprocity reduce transaction costs as risks are reduced and can act as a basis for informal safety nets amongst the poor. Although cooperatives and trade associations (such as Mbarara Farmers Association) exist, the desired results have not yet come to fruition, indicating that further research is required in to the possible impediments to this strengthening of community. As mentioned above, farmers associations can help to reduce the exploitative powers of middlemen, allowing more of the revenues to accrue to the farmers directly. Government initiatives, such as the Matooke Market Development Program of 2005 have been institutionalised to this end, however it is still too early to assess their effectiveness. It is important that their progress be monitored and researched.

Although their numbers appear to be substantial, we were unable to assess the number of individuals working as middlemen between farmers and consumers. This in itself 31

constitutes a potential future problem, as their omission from the value chain may contribute to increased overall poverty depending on their number. If they cannot be absorbed into other sectors and there is a need to assimilate them into the value chain, policies and structures to reduce their exploitative powers must be investigated.

Assessing the effectiveness of NAADs is crucial in determining the extent to which government interventions are reducing poverty and aiding small enterprises in the agricultural sector. As the initiative is still in its infancy, we were unable to determine ease of access and influence19, implying that further research will be required to track future developments.

Crucial to further research will also be an investigation of how a better savings and spending culture can be promoted amongst matooke farmers in order to avoid the build-up of idle, unproductive funds under mattresses. Furthermore, financial

products currently available from microfinance institutions in Mbarara are not compatible with the financial needs of the farmers. An investigation into how these can be better tailored is integral to the success of the financial sector in improving the conditions suffered by small enterprises in the region. In addition to this, research is needed to assess the effective demand for credit amongst matooke farmers. While the Bank of Uganda estimates this demand at 21% 20 , it remains unclear whether the number is so low due to lack of information dissemination to rural areas, or whether farmers in reality do not want credit.

Our investigation revealed a high level land fragmentation due to traditional land ownership systems, which has severe implications for future productivity. Unless farmers engage in value added agricultural activities this fragmentation will lead to reduced incomes and increased poverty levels for current and future generations. There has been an expressed desire by some of the stakeholders to formalise land titles, thus opening the doors to bigger agri-business, but we fear that ensuing land purchases by agri-businesses could displace large segments of the rural population, causing increased rural to urban migration and potentially increasing poverty in the
19

During our investigation, some farmers expressed satisfaction with the services provided by NAADs, while others expressed that they felt excluded from the initiative. This juxtaposition tended to coincide with the wealth of the farmers the more wealthy farmers appeared to enjoy greater access than the poorer farmers. However, due to time constraints we were unable confirm or refute the totality of this phenomenon. 20 According to prof. Mutebile, Governor of the Bank of Uganda.

32

district. Research into the potential benefits of better livelihood strategies based on cooperative production systems may reveal methods by which to achieve improved livelihood outcomes.

While the Plan for the Modernisation of Agriculture foresees strategies for the improvement of farmers livelihoods there are concerns that it does not address the root of the problems felt by poor farmers. Critics allege that deeper institutional issues need to be addressed before modernising agriculture. Therefore, more research needs to be undertaken to ascertain what these institutional issues are and also how much (If at all) they are included in the PMA. As stated by Dr. Nuwagaba, a Management Consultant with Reev Consult International, there is a necessity for transformation, not modernisation21.

Finally, further research will be needed to assess the impact that policies and institutions have had on the wider community engaged in matooke farming within the district of Mbarara. Time constraints imposed on our research trip resulted in our interviews of only five small enterprises owners, whereas evidence points to the existence of some 200,000 small enterprises engaged in the agricultural sector in Mbarara.

21

This is taken from a presentation given by Dr. Nuwagaba at Makarere University on 4th May, 2007.

33

Strategy Guidelines

In order to effect poverty reduction via small scale enterprises it is our belief that the PEAP focus of the on two core areas: Increase in entrepreneurial skill development and agricultural friendly microfinance. While Pillar 5 of the PEAP focuses on human development we believe that there should be a stronger emphasis on entrepreneurial skill development and capacity building. Lack of resources channelled into this area, made evident by the low level of coverage of NAADS, leads to overstretching of services and therefore reduced poverty reduction in Mbarara. As services are stretched to full capacity, lack of entrepreneurial skill development amongst matooke farmers affects livelihood assets which ultimately affect livelihood outcomes.

Though there is a focus on microfinance within the PEAP, our research indicates that there needs to be a greater focus on agricultural friendly microfinance. At present the vast majority of poor people are engaged in the agricultural sector yet it seems that no microfinance institutions cater to their financial needs. The current focus of the Plan for Modernisation of Agriculture is heavily biased towards formalised, progressive farmers. We fear that this will enhance inequalities in the region. We recommend that a higher percentage of funds and advisory services be directed towards poorer informal farmers.

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Appendix I: Interview Questions and Guidelines

The following questions are to be used primarily as guidelines for the general groupings of stakeholders. Individual interviews will require different areas of focus, and new topics of interest will arise during the interviews. In short, interviews should not be restricted to the following questions. (A). Small Business Owners (casual interview structure, covering the following topics) 1. How many employees work for the business? 2. Who works in the business? (i.e. family members or paid employees?) 3. What is the biggest constraint that you face at the moment? 4. What support, if any, do you receive? 5. What is the biggest obstacle to expansion of the business? 6. How could the profitability of the business be improved? 7. Do you process your produce? 8. How are the actions of the government perceived? 9. Is there access to capital? 10. How, if at all, are taxes collected by the government?

(B). Government Officials (structured interview) 1. 2. 3. 4. 5. What policies are in place to support trade and matooke farmers in Mbarara? Have these policies been effective? What are the indicators used to measure success of these policies? What are the principal constraints faced by matooke farmers? What are your biggest constraints in service delivery and support to matooke farmers? 6. What determines the eligibility of matooke farmers for government assistance? 7. How has the Plan for the Modernisation of Agriculture been applied in your development plans? 8. Are there specific policies in place that target the informal sector? 9. Is formalisation a priority? 10. How, in your view, can matooke farmers aid in the fight against poverty? 11. What have the effects of International Donor Programs been on your administrative flexibility? 12. In your opinion, how has the removal of bureaucratic barriers to investment, outlined in pillar one of the PEAP, affected matooke farmers in Mbarara? (C). Finance Institutions 1. How do you determine the credit eligibility of small business owners? 2. For what activities are credits given? 3. What are the principal constraints to small businesses in the area for acquiring finance? 4. How has the Microfinance Law, enacted by parliament in 2003 affected your operations? 5. What information is made available to microfinance institutions that can aid them in the effective provision of micro-credit? 35

6. 7. 8. 9.

Is there a bias towards urban regions? What is the default rate in the region? What forms of collateral are necessary for the issuing of a credit? How could the government aid you to expand and improve your services?

(D). University 1. In what way is the university involved in capacity building for small business owners? 2. What, in your opinion, are the biggest constraints faced by small businesses in Mbarara? 3. What kind of classes/workshops/etc. do you provide? 4. Is there a strong demand for your expertise? 5. What, if any, funding do you receive for the purpose of capacity building for small business owners? 6. Has research carried out by the University been taken on board by the government? 7. Are your activities restricted primarily to urban areas?

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Appendix II: Stakeholder Analysis

This stakeholder analysis focuses on the role of the stakeholders in poverty reduction around Mbarara town. Considering ability to successfully sell matooke as a means to increase livelihoods and thus decrease poverty, the interests of the relevant stakeholders are outlined below, as well as their importance and influence in determining the level of poverty reduction. Stakeholder Commercial Farmers Interests - increased income - increased productivity - increased formalisation - increased capacity to supply local and regional markets directly - increased technology - growth of farm (increased natural capital and sustainability thereof) - diversification - expansion to regional markets - minimisation of labour costs Poor Female - increased income Headed - increased productivity Households - increased technology - reduction in exploitative power of middlemen - education of children - increase food security - social networking (grouping) - improved health (personal and of children) - securing care for future (old age) Successful - increased income Female - increased productivity Headed - increased technology Households - education of children - increase food security (however, not to the extent of poor households) - social networking (grouping) - improved health 37 Importance 2 Influence 3 Explanation
Influence is relatively high because they can have a significant negative impact on the poor farmers (acquisition of land, capture of government support meant for poorer farmers, etc.)

A1

A2

The most vulnerable stakeholder. Middlemen serve an important function for some in this stakeholder group, as the women may not otherwise be able to transport their matooke to the markets. Therefore, they are interested in a reduction in the exploitative power of the mioddlemen, but not necessarily in their elimination.

A3

Importance lower than poor households, as they have reduced vulnerability. It may be in their interest to eliminate the middlemen if they have means to transport their goods to market

A4

Poor Nuclear Households

A5

Successful Nuclear Households

B1 Middlemen

(personal and of children) securing care for future (old age) Elimination of middlemen (depending on existence of help to transport matooke to market) increased income increased productivity increased technology education of children increase food security social networking (grouping) improved health (personal and of children) securing care for future (old age) elimination of middlemen (depending on existence of help to transport matooke to market) increased income increased productivity increased formalisation elimination of middlemen food security (lower importance relative to poor households) increased technology growth of farm (increased natural capital and sustainability thereof) diversification education of children

Similar to Poor Female Households, but with reduced vulnerability, as they will most likely have another source of income or increased help on the farm.

Similar to Successful Female Headed Households, but with reduced vulnerability.

- increased income - food security - increased technology/ machinery - education of children - securing care for the future (old age) - improved health (personal and of children) 38

High influence as they have great bargaining power over the farmers (i.e. room for exploitation). While importance is set at a relatively low level, further research is needed to determine the number of individuals involved in this activity and the impact that their employment has on poverty levels.

C1

C2 C3

Ministry of Tourism, Trade and Industry Bank of Uganda Internationa l Community Donors Civil Society Organisatio ns National Agricultural Advisory Services (NAADS)

- increased productivity of trade

Their supervision of local government district offices, they do have an influence on poverty

- macroeconomic stability poverty reduction political stability reduced corruption liberalisation (WB) decentralisation poverty reduction income redistribution decentralisation empowerment of the poor efficient allocation of resources - increased productivity of small enterprises - elimination of middlemen

1 1

4 4

If the Bank of Uganda is unable to maintain macroeconomic stability, the poor will suffer most (inflation, etc.) As approx. 50% of the Ugandan national budget is provided by international donors, they are highly influential in poverty reduction. This stakeholder therefore represents a killer risk High in influence because they are key to grouping, which improves the bargaining power of the matooke farmers

C4

C5

C6

C7

C8

Mbarara University of Science and Technology Local Government Production and Marketing Officer Local Government

- increase research capacity - stronger links with farmers and with local government - increased productivity - improved production standards - increased incomes of farmers - expanding markets - expanding markets - favourable trade policies - increased regional integration - increased incomes of farmers - increased agricultural productivity - increased effectiveness of private service providers - increased effectiveness to ensure sustainability - secure NAADS projects - increase grouping of farmers 39

NAADS are key to increasing the human capital of the matooke farmers, permitting them to increase production, efficiency and sustainability. In Mbarara they are the foundation for improving entrepreneurial capacity, and thus enabling improved livelihood strategies. Their influence is higher than the private service providers below, as without these, the service providers would lose their funding. M.U.S.T. was not observed to be engaged in much capacity building for farmers, contrary to our initial assumptions.

Direct relationship with local enterprises gives them high level of influence.

Direct relationship with local enterprises gives them high level of influence.

C9

Local Government

Direct relationship with local enterprises gives them high level of influence. Note: higher potential for effectiveness due to direct focus on agriculture Increased grouping implies a greater number of farmers who are eligible for NAADS services, thus also a greater number of clients.

C10 Private Service Providers

A2 A4

C4 A3,A5

IMPORTANCE

C6

A1,C10

B1,C7, C8,C9

C5

C1

C2,C3

INFLUENCE

Appendix III: Interviewed Individuals involved in Matooke Individual

Thorntree Farm

Description
Wealthy (board of Directors, owner in Kampala), well-equipped, good machinery, product diversification (cattle, dairy, fish and various fruits), large estate/land, good access to credit and NGOs, no product processing, employed casual labour and 10 employees.

Mrs. Teobista

Well-off farmer, employs casual labour, product diversification, processed food, good machinery, pick-up truck, well-equipped estate, large estate, good access to credit (although she expressed dismay at the available credit products and their lack of suitability for farmers)

Farmer A*

Female farmer, poor housing in need of repair, inadequate road access, lack of financial capital, lack of machinery, matooke production to complement husbands income, no product diversification, no food processing, member of community organisation, however stated that lack of financial capital prevented her from implementing recommendations from NAADS.

Farmer B

Female farmer, very poor housing (mud hut), children appeared undernourished, no casual labour, very far from good infrastructure and roads, some chickens for subsistence, no machinery, no product diversification, no food processing, not a member of any community organisation, lack of financial capital.

Mbarara Central Market A

Female seller, large product (fruit) diversification, medium stall, receiving financial capital from a small microfinance organisation, claimed business was going well, buys matooke from middlemen and from the market

Mbarara Central Market B

Female seller, large product (fruit) diversification, medium stall, not receiving any financial aid, claimed business was booming, is in a traders group (not registered) which she mentioned has helped her a lot, buys matooke from middlemen

Middleman, Ruti Market

Man, able to sustain his family with his income, healthy appearance, good shoes, good bicycle, fairly up-beat about his trade.

Bulk Buyer

Woman, confident, owns a truck that transports the matooke bunches to Kampala, would not divulge how much she receives per bunch in Kampala * Farmers seemed far more willing to participate in our research when we left it at a very informal level. Asking for names tended to make them more wary. For this reason, we only have some of the names.

Appendix IV: Trade Relationships in the Sale of Matooke

Community Based Organisation/ Trade Organisation

Matooke Farmer

Middleman

Bulk Buyer

Retailer

Consumer

Bunch Price: 2,000 USh

4,500 USh

6,000 USh

8,000 USh

Matooke farmers rarely sell directly to the consumers. Usually, there are a number of steps, at each of which the price for a bunch increases substantially. Due to the low bargaining power of the matooke farmers, middlemen have high exploitative power over them and are able to capture much of the financial rewards from them. The prices listed above serve only as an illustration prices can fluctuate greatly depending on the season, the availability of matooke and depending on cultural events. According to Mrs. Teobista, one of the farmers that we interviewed, the price of a bunch of matooke at the end of this chain can rise to up to 20,000 USh during holiday seasons. Community groups can cut out the majority of the links in the chain, bringing the farmer closer to their consumers. As explained in the Recommendations Report, this is encouraged by the government, which has made membership in one of these community groups a prerequisite for eligibility for advisory services.

Appendix V: Matooke Farmers in the Sustainable Livelihoods Framework

TRANSFORMING STRUCTURES AND PROCESSES*

HUMAN CAPITAL - Entrepreneurial Skills - Education VULNERABILITY CONTEXT - Droughts - Banana Bacterial Wilt - Price Shocks - Security - World Trade Regulations STRUCTURES - private service providers (influencing H by providing tech. assistance) - District Commercial Officer (inf. H) - District Agricultural Officer (inf. H) - District Production and Marketing Officer (inf. H+P) - Ministry of Microfinance** (inf. F through credit/debt) LIVELIHOOD OUTCOMES - more income - increased well-being - reduced vulnerability - improved food security - more sustainable use of natural resource base

NATURAL CAPITAL - Land

SOCIAL CAPITAL - Families - Communities - Cooperatives

H S N
Influence and Access

PHYSICAL CAPITAL - infrastructure - machinery

F
FINANCIAL CAPITAL - credit/debt - savings - income

- NAADS (inf. H) - Gender Bias (inf. S) - Financial Institutions (inf. F) - Plan for the Modernisation of Agriculture *** (inf. H N F P S) - Bonna Bagagawala (prosperity for all) (inf. F) - Policies to encourage grouping (inf. S) - Land tenure traditions and laws (inf. N) Education (inf. H) PROCESSES

LIVELIHOOD STRATEGIES

* DFID lists Structures as Levels of Government and Private Sector, and Processes as laws, policies, culture, and institutions ** This is a new ministry that has been established to enhance the Prosperity for All initiative. *** The Plan for the Modernisation of Agriculture, according to NAADS Coordinator Dr. Berinda, comprises seven pillars: Agricultural Education; Research Advisory Services (NAADS); Natural Resource Management; Agro-Processing and Marketing; Microfinance; and Supporting Infrastructure. It is for this reason that this process has an impact on all five livelihood assets.

Appendix VI: List of Interviews

Kampala 3rd May 5th May 3RD MAY AM Professor Mutebille Governor of the Bank of Uganda PM Dr. Lawyer Centre for Basic Research 4TH MAY AM Economic and Social Research Centre, Makerere University Dr R. Edwards - Deputy Director, DfID Uganda PM Dr Nawagaba - Economic and Social Research Centre, Makerere University 5TH MAY AM Uganda Martyrs University, Nkozi MBARARA 7TH MAY 11th MAY 7TH MAY PM Dr Charles Tushabomwe Kazooba - Lecturer, Mbarara University of Science and Technology 8TH MAY AM Mr Appolo - Manager, Thorntree Farm Mrs Teobista - Matooke Farmer, Nyakayojo Farmer A - Matooke Farmer, Nyakayojo

Farmer B - Matooke Farmer, Nyakayojo PM Mrs Byarugaba - District Production Officer, Mbarara District Council 9TH MAY AM Dr Berinda - NAADS coordinator, Mbarara Dr Geoffrey - Director, Jemuco Agro-Enterprises Ltd Mr Wycliffe - Director, Ankole Farmers Association Mr Kaganzi - Vice-President, Uganda National Chamber of Commerce PM Market Trader A - Mbarara Central Market Market Trader B - Mbarara Central Market Middleman - Ruti Matooke Market Bulk Buyer - Ruti Matooke Market 10TH MAY AM Mr Lubemba - UGAFODE Ltd, Mbarara Dr Kasiisi - District Coordinator, MBADIFA Mr Kabarega - District Agricultural Officer Mr Mutabarura - District Commercial Officer

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