MPs call for increased funding for agro-industrialisation
According to the Committee, this will align with Uganda’s commitment under the Comprehensive Africa Agriculture Development Programme [CAADP] to allocate 10 percent of the national budget to agriculture by 2025
KAMPALA, April 11, 2025 — Parliament’s Committee on Agriculture, Animal Industry, and Fisheries has recommended a phased increase in funding for the Agro-Industrialisation Programme through budget allocation from the current 2.4 percent to 5 percent of the national budget.
According to the Committee, this will align with Uganda’s commitment under the Comprehensive Africa Agriculture Development Programme [CAADP] to allocate 10 percent of the national budget to agriculture by 2025.
This was one of the recommendations presented on Thursday by Committee Chairperson Linda Auma, who presented the committee report during the House sitting chaired by the Deputy Speaker, Thomas Tayebwa.
CAADP, an African Union Agenda 2063 flagship initiative, has driven significant growth in agricultural productivity, trade, and investment across the continent since the 2003 Maputo and 2014 Malabo Declarations.
The Committee also expressed concern over the recent reduction in Uganda’s Agro-Industrialization Programme budget, which has dropped from 2.9 percent of the national budget in the 2024/2025 financial year to 2.4 percent in 2025/2026. This falls short of the Shs 2.448 trillion target set in the National Development Plan [NDP IV], with the current allocation covering just 70 percent of this goal.
Agriculture remains the backbone of Uganda’s economy, employing 70 percent of the population but contributing only 24.7 percent to the GDP, largely due to low-value, raw agricultural output.
As a result of rationalisation of government agencies, the Agriculture Ministry has absorbed responsibilities previously handled by other agencies, such as the Uganda Coffee Development Authority [UCDA], the Dairy Development Authority [DDA], the Crop Development Organisation [CDO] and the National Agricultural Advisory Services [NAADS], without a corresponding increase in funding.
The Ministry’s budget has dropped from Shs1.182 trillion to Shs 806.94 billion, further straining its capacity to deliver services effectively.
Key gaps highlighted by the Committee include Shs 15 billion for coffee seedlings and Shs 5 billion for hoes, which they considered inadequate.
The committee called for increased funding to support the production of high value crops such as avocado, macadamia, cashew nuts, apples, sunflower, and soyabean, along with vital agricultural inputs like seeds and fertilizers.
To address the challenge of mechanisation, the committee proposed Shs 105 billion to scale up the national tractor scheme, aiming for the acquisition of 300 tractors per year over the next three years.
The Members of Parliament also highlighted the underutilisation of Uganda’s arable land, where only 35 percent of the land suitable for agriculture is currently used. They recommended Shs 75 billion to establish mechanisation centres across the country. The legislators also called for Shs 57.43 billion to close irrigation infrastructure gaps, including the construction of valley dams and water reservoirs.
During the debate, several MPs supported the committee recommendations. Lee Denis Oguzu, the Maracha County MP criticised the disparity between budget allocations and the targets set in NDP IV, stressing agriculture’s critical role in Uganda’s economy.
“Agriculture, especially coffee, which generated US$1.6 billion in financial year2023/2024, is underfunded. If we want to generate more revenue, we must invest more in agriculture,” he said.
Abdulhu Byakatonda, the Workers Representative voiced concerns over the government’s insufficient attention to the agriculture sector, which employs more than 70 percent of the population.
Stella Atyang, the Moroto District Woman Representative highlighted the need for additional funding to procure tractors, citing the scarcity of machines in the Karamoja sub-region where only 10 tractors were provided last year.
“Each district needs more tractors to ensure timely agricultural practices,” she said proposing that more funds be allocated to the Ministry of Agriculture to ensure that every parish receives a tractor.
Helen Nakimuli, the Kalangala District Woman Representative commended the inclusion of support for the Fisheries Protection Unit [FPU], although she called for further funding to support fishing nets and to subsidise boat engine taxes, which currently cost up to Shs 10 million.
On his part, State Minister for Agriculture, Fred Bwino Kyakulaga, pledged to work towards addressing the identified budgetary gaps in the coming financial year.
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