KAMPALA, November 10, 2026 — The National Agricultural Research Organization [NARO] has commended the Government of Uganda for increasing its annual budget from Shs 61 billion to Shs 223bln over the past decade, while calling for greater investment in alternative funding sources to sustain agricultural research.
NARO Director General, Dr Yona Baguma, said although government remains the organisation’s primary source of funding, declining financial support from development partners makes it increasingly important to diversify revenue streams.
“Over the last 30 years, we have done a lot as NARO, but we must continue finding ways of securing resources for sustainable research. We need to add value to the facilities we have and make them work for us,” Baguma said.
He cited several initiatives through which NARO is generating additional revenue, including licensing private seed companies to produce and market improved crop varieties, an initiative that generates more than Shs 1bln annually.
Baguma also pointed to the establishment of seed hubs, particularly the coffee seed hub, which generated products worth more than Shs 20bln in the last financial year.
He added that investments in an anti-tick vaccine manufacturing facility had resulted in vaccine stocks valued at more than Shs 20bln, highlighting the potential of research investments to generate commercial returns.
“These investments are intended to make NARO more self-sustaining. We must invest our brains and make the right decisions,” he said.
Baguma was speaking during a management meeting convened recently at Speke Resort Munyonyo to review Public-Private Partnership [PPP] project concept notes and feasibility studies aimed at unlocking the commercial potential of NARO’s research infrastructure.
He said the organisation was exploring partnerships with the private sector to attract investment, technology and expertise, increase internally generated revenue and strengthen its financial sustainability without compromising its agricultural research mandate.
“NARO has several facilities whose capacity we need to harness to generate revenue for sustainable agricultural research and also make a contribution to the national coffers,” Baguma said.
Facilities identified for possible commercialisation include the dairy processing plant and livestock feed mill at the National Livestock Resources Research Institute [NaLIRRI]; the fish feed mill at the National Fisheries Resources Research Institute [NaFIRRI] in Kajjansi; and the feed sorting facility at Mbarara Zonal Agricultural Research and Development Institute [Mbarara ZARDI].
Others include automotive garages at the National Semi-Arid Resources Research Institute [NaSARRI], NaLIRRI and the National Crops Resources Research Institute [NaCRRI], as well as hostel facilities at NaFIRRI in Jinja and Mukono Zonal Agricultural Research and Development Institute [MuZARDI].
The Executive Director of the Public-Private Partnership Unit at the Ministry of Finance, Planning and Economic Development, Jim Mugunga, commended NARO for identifying opportunities within its existing infrastructure that could be developed into commercially viable ventures through private sector partnerships.
Mugunga said increasing demands on Government resources required public institutions to explore alternative financing and investment models to supplement funding from the national budget.
“No country can fund everything it needs to do entirely through its national budget. Government has therefore been encouraging institutions to identify opportunities where private sector partnerships can bring in the strength, technology, innovation and financial resources needed to expand service delivery,” he said.
He said NARO’s approach demonstrated how public institutions could turn existing research infrastructure and investments into commercially viable ventures while maintaining their core mandates.
Using NARO’s feed processing facilities and improved pasture production as examples, Mugunga said private sector partnerships could help exploit excess production capacity beyond what was required for research activities.
He added that commercial arrangements would enable the organisation to make greater use of machinery and other infrastructure that might not need to operate continuously for research purposes.
Mugunga linked the initiative to government’s broader economic transformation agenda, including the Tenfold Growth Strategy and the Parish Development Model [PDM], saying research innovations needed to be translated into products and services that benefit farmers and stimulate economic activity.
He said the PPP approach would also support domestic revenue mobilisation by ensuring that public investments generated greater economic value.
Mugunga pledged that Public-Private Partnership Unit at the Ministry of Finance would continue working with NARO and other relevant government institutions, including the Ministry of Finance, Planning and Economic Development, Operation Wealth Creation and the Ministry of Agriculture, Animal Industry and Fisheries, to identify and develop viable partnership opportunities.
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