PRUDEV – Promoting Rural Development in Uganda

Programme description

Title: PRUDEV – Promoting Rural Development in Uganda
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Uganda
Lead executing agency: Ministry of Local Government (MLG)
Overall term: 2017 to 2019

Context

Uganda has made great progress in reducing poverty in recent years – thanks mostly to economic growth. More than 80 per cent of the Ugandan population and 95 per cent of the poor live in rural areas. The majority of them (76 per cent) earn a living from farming. In 2014, agriculture accounted for 25 per cent of Uganda’s Gross Domestic Product (GDP), thus proving this sector’s importance for economic development. However, agricultural production, productivity and processing-based value creation are low by regional standards. This is particularly true of the country’s Northern (and Eastern) regions, which are poorly developed and disproportionately affected by poverty. The agriculture sector’s poor performance manifests in low yields, high post-harvest losses, low quality produce and inadequate knowledge, for example about climate-adapted farming methods.

Objective

Agriculture-based development (ABD) has improved the rural economy in selected regions of Northern Uganda.

Approach

By generating positive employment and income effects and thus reducing poverty and boosting food security, the project is fostering agriculture-based development in selected rural regions in Northern Uganda. The objective is to harness the agricultural sector’s potential for rural economic development by promoting the integration of farming enterprises – mainly smallholdings – into value chains. Above all, the project is working to create the general enabling conditions required to transform and grow the local rural economy. Besides building capacity in the agricultural sector, it also boosting various upstream and downstream sectors and improving access to financial services and investment.

Project activities are designed to improve the range of services on offer. These inputs are geared primarily to rural MSMEs and smallholders, since most of them often only have limited resources. Once empowered, these enterprises can contribute to poverty reduction in various disproportionately affected districts of Northern Uganda. A key project focus is on promoting the economic and strategic interests of women and young people by fostering their equal participation in local level decision-making processes and ensuring these target groups are included in training measures (e.g. targeting business startups, good climate-adapted farming practices and access to financial services). Together, these activities are helping to raise employment levels and incomes and thus reduce poverty and improve living standards for women and young people.