USAID/Kampala : evaluation of IDEA [investment in developing export agriculture] project

Interim evaluation covers the period 1995-5/99. The project has generated annual exports of approximately $20 million per year of high-value commodities and $17 million per year (in 1998) of low-value commodities. Increased incomes from maize and bean production in the range of $7 million per year have been achieved. The project has also developed an innovative system for private sector input supply and technology transfer, as well as a group of exporters of high- value products that provides Uganda with a core of agribusinesses capable of competing in global markets. The project has generate income for rural households. The high-value export enterprises have generated an estimated 4,000 permanent jobs and increased revenue to 23,650 smallholders and employees. Efforts to increase the production and trade of maize and beans have benefitted 120,000 small-scale farmers by providing improved production and post-harvest handling technologies, with annual benefits estimated at $50-$200 depending on the amount of land planted with new varieties and managed with improved production techniques. Also, the project is putting in place structures that can sustain growth without continued donor investment. The project is unquestionably achieving its goal and purpose by increasing household incomes through NTAEs. All targets are being met or exceeded, which can be attributed to excellent contractor performance. IDEA interventions are widely known in Uganda. The low-value (maize and beans) component has developed and widely extended improved technologies and thus done an excellent job of addressing the primary cause of low farmer incomes -- inefficient production practices. More effort should now be devoted to identifying and developing the producer groups most capable of using more efficient technologies to produce quality products for commercial markets. Effort should also be made to explore the production and marketing of other staple commodities such as confectionery crops (sesame and groundnuts). The high-value component has a sound approach to identifying and developing high-value exports. It will need to avoid overload by continuing to be rigorous in choosing activities with the highest potential. The high-value export sector will need support from the project, the Mission, and the Government of Uganda to maintain and increase competitiveness in the global market. Areas needing particular attention are the use of market information, pesticide use and handling safety, financing and credit mechanisms, and transport and handling efficiency. Developing competitive agriculture sectors has a high potential for payoff to USAID investments. But full payoff can only be achieved by maintaining the effort for a relatively long period. The Mission's life of strategy in this area should be a minimum of 10 years. Shorter-term strategies for increasing incomes will probably neither have broad impact nor be sustainable. The project should be extended at least through 2004. Except for the grant to the Africa Project Development Facility (APDF), the Mission should, to the extent possible, replace the current USAID-managed grants program with simpler mechanisms such as direct purchase of inputs and fixed fee contracts for services under management of the contractor-run Agribusiness Development Center (ADC). (Author abstract, modified)