The Development of Inclusive Markets in Agriculture and Trade (DIMAT) Project

What is the project about?


Rice, one of Uganda's most consumed cereals, is one of the crops selected for the UNDP DIMAT project value chain analysis. ( UNDP Uganda/Matthias Mugisha 2013)

The Development of Inclusive Markets in Agriculture and Trade (DIMAT) project is aimed at creating market access and improving the value of agricultural produce – core to Uganda’s Agricultural Development Strategy and Investment Plan 2010/2015 which envisions shifting agricultural production from the confines of subsistence farming into commercialised mode, as a way of helping some of the poorest communities create income-generating activity.

The project kicked off in the last quarter of 2011 and ends in 2014. A study of ten priority commodities was done, from which three were selected for value-chain interventions. These are beans, cassava and rice. The project will now work to improve competitiveness in the markets of the three products, working for more integration of producers, retailers and consumers in the value-chain.

The three are not only staple to the feeding requirements of the population but are also important income generating commodities for many farmers. Beans for instance provide 25 percent of the total dietary calorie intake and 45 percent of protein intake. Majority of households in Uganda grow beans while Cassava is considered the second most important food crop after bananas in Uganda.

However, a host of challenges still hold back the value-chain of actors involved in the commodities’ production. For one, there are few bean processors in the country, and these utilise only one percent of the total dry bean produce to process bean flour. The lack of government policies for the bean sub-sector combined with the unpredictable weather conditions particularly prolonged drought are also a serious threat to the potential growth of this commodity. On the other hand, Cassava farmers use poor quality planting material and are troubled by a high prevalence of diseases, especially the devastating Cassava Brown Streak disease which has affected production output.

Through DIMAT, the capacity and ability of small-scale farmers to participate in the agricultural supply and value-addition chain will be improved tremendously through provision of training to farming groups on new technologies. The project further aims to improve market linkages between farmers and other actors along the value-chain by providing pro-poor business models that enhance the participation of the target beneficiaries in integrated agricultural produce.

DIMAT is implemented by Enterprise Uganda, which is responsible for the coordination, production and management of the day-to-day implementation of the project’s activities. Partners responsible for implementing specific activities under the project are Kilimo Trust, Eastern Private Sector Development Centre (EPSEDEC), Acholi Private Sector Development Centre (APSEDEC), and, Private Sector Development and Consultancy Centre (PRICON).

The project is being carried out in the following selected regions;

Commodity

Region

Districts

Rice

Northern

Gulu, Kitgum, Amuru, Pader and Lira.

 

Eastern

Iganga, Butalejja, Pallisa, Soroti

 

Western

Hoima, Kyenjojo, Kabarole

 

Beans

Eastern

Busia, Mbale, Sironko

 

 

Western

Kibaale, Bushenyi, Kamwenge, Kyenjojo

 

 

Central

Rakai, Masaka, Mubende

Cassava

Eastern

Soroti, Pallisa, Kibuku, Kamuli

 

Northern

Apac, Gulu, Amuru

 

 

Western

Kyenjojo, Masindi, Kiryandongo, Hoima, Kabarole

Accomplishments

The project’s key  out puts so far include;

  • Creation of 20 fully functional business linkages between processors and small enterprises in the three commodities’ value-chains, as a way of enhancing market access. At least eight pro-poor business models will be developed and operationalised to create mutually beneficial business linkages between micro and small local producers with large local and international enterprises that contribute to the development of inclusive markets. 
  • In addition, it is expected that at least 200 mid to small medium enterprises will be accessing productive assets like finance, market information, extension services and appropriate technologies.

Who finances it?



The project is funded from UNDP core resources to a tune of USD 2.6m

Project Overview
Status
Active
Start Date
2011
Estimated End Date
2014
Geographic Coverage:
Uganda
Focus Area:
Growth & Poverty Reduction
MDG:
MDG 1
Project Officer:
Irene Ntanda
Partners:
Government of Uganda,Kilimo Trust, EPSEDEC & APSEDEC