Mechanization: A kick-start to agricultural prosperity.

Inadequate agricultural mechanization is one of the biggest hindrances to transforming Uganda’s agriculture from subsistence to commercial agriculture. The director of National Crops Resources Research Institute (NaCRRI), Dr. Godfrey Asea, recently said that 99.4% of small scale farmers in Uganda use rudimentary and obsolete technologies in agriculture, having tools like hand hoes, hand held axes, shovels, and slashers. Such tools make the cultivation process i.e slashing, digging, sowing of seeds and harvesting very tiresome and frustrating for the farmers. As a result, they end up tilling less land with low productivity.

The introduction and use of machines makes farming much easier than using manual labor. For instance tractors have components like the planter used for planting seeds, fertilizer operators, an irrigation engine, and manure spreader. Other farm tools like grain invaders are used during the harvesting process to pour seeds in silos, and the hay baler is used for parking hay in bales. In addition, these machines also increase the average cultivated farm land per day or in a given time period. This therefore enhances productivity by a great deal.

Modern agricultural mechanization is the way to go because by using mechanized tools, farmers will be able to reap high quantities of improved crop yields. Their household incomes will grow by leaps and bounds as the surplus available for sale will also be in larger quantities. On the other hand, the usual practice of using manual labor and rudimentary tools is rather time wasting and produces low yields.

Until next time…

Hindrances to the prosperity of the agricultural sector in Uganda.

Agriculture has been the back bone of Uganda’s economy for ages. Recent statistics show that over 80% of Uganda’s population is employed at some stage in the agricultural sector. However, the benefits and direct contribution to the economy are yet to be fully derived and enjoyed by the populous involved in this trade.

While doing research on agriculture in Uganda, I found that the following are some of the major hindrances to the prosperity of this sector. Low commercial agricultural levels, lack of linkage between research and farmers, lack of agricultural machinery, pests and diseases, low level of value addition, land fragmentation, high cost of finance, and the poorly structured transport network.

In my next articles, I will explore in detail some of the elements that have continuously held Uganda back in terms of agricultural growth and development.

Until next time…

Living within our means for a better tomorrow.

Today, I was priviledged to attend a conference with the theme Power, Sex, and Money, the emphasis being on Money. Majority, if not all of the people in attendance were quite youthful, with some of them being students at university and others recently starting out in the job market.

The discussion at hand was very interesting and it involved the use of money in economic growth and development on a micro level. Very importantly though, it also encompassed how to make clean money that will last for years to come, in the process leading to progressive and sustainable macro economic development.

One of the guest speakers was Mr. Amos Wekesa, founder, Great Lakes Safaris ltd who also happens to be my mentor. He emphasised the importance of saving and living not only within, but also below our means.

He argued that this would potentially reduce the amount of debt that many people usually accumulate from unecessary liabilities like luxurious cars. These spending habits in many cases also result in the vicious cycle of borrowing. However; “When you save money, one day that money will save you.” Amos Wekesa added.

We should always endeavor to live within our means, and use the money that we have to make a positive and significant difference in our economy.

Until next time…

Crane Bank’s takeover by DFCU Bank.

The Governor Bank Of Uganda (B.O.U), Tumusime Mutebile, in a letter dated 27th Jan 2017 stated that DFCU Bank  ltd had taken over the control and management of all assets and liabilities of Crane Bank ltd.

This didn’t come as a surprise to many since Crane Bank had as of 20th Oct 2016 been declared insolvent by the Central Bank (B.O.U). It was found to be undercapitalized with its liabilities grossly exceeding its assets.

This undercapitalization was found to be mainly due to the presence of Non-Performing loans. Many people were using short-term loans to finance long-term investments like building houses for rent thus failing to pay back these loans in time.

Nonetheless, the Central Bank ought to be applauded for doing a good job in making sure that depositors didn’t lose their money and the financial sector was kept relatively stable.The Governor B.O.U said;  “B.O.U reassures the public that it will continue to protect depositors’ interests and maintain the stability of the financial sector.”

However, inspite of this assurance, some Economists predict that Crane Bank’s collapse could have dire effects on Uganda’s economy with foreign investors leaving the Ugandan market.

Will people also resort to keeping their money under pillows and mattresses? …your guess is as good as mine.