Profiling of Small and Medium Agricultural Enterprises in Uganda and Tanzania
Title:Profiting of Small and Medium Agricultural Enterprises in Uganda and Tazania
Funder:Bill and Melinda Gates Foundation
SMEs play an ever increasing role in creating income and employment. In Tanzania for example, it is estimated that a third of GDP originates from the SME sector while in Uganda it estimated that it contributes about 75%. However, most agricultural SMEs are informal, poorly developed, and inadequately supported which limits their ability to compete in global, regional or even in domestic markets. Their full potential is constrained by developmental and operational challenges that include inadequate capital, weak internal management capacity, limited market access, complex regulatory and administrative environments a well as poor infrastructure. This situation is exacerbated further by inadequate and inaccurate information regarding the sector. To be able to address the challenges ailing the SME sector in Uganda and Tanzania, BMGF commissioned Kilimo Trust to undertake a study to profile agricultural SMEs.
The core objective of the study was to gather accurate information to guide the development of targeted interventions to support agricultural SMEs in Tanzania and Uganda so as to reduce their risks and challenges in order for them to fully participate in different agricultural value chains. Seven value chains were prioritised and analysed namely: Beans, Cassava, Banana, Dairy, Maize, Cassava and Sweet Potato.
The specific objectives were to:
- Identify and categorize the most important SMEs and Value Chain Institutions and Support Institution Services (VCISIS) within the focus value chains.
- Profile existing SMEs and VCISIS to assess their structure, performance and sustainability.
- Determine and articulate needs and objectives for investment and/or interventions to build new and/or strengthen existing SMEs and VCISIS in the two countries.
- Produce baseline of the current situation, presence and performance of SMEs across the focus value chains.
The study was conducted in three phases:
- Phase 1: Define, identify and categorize the most important SMEs and VCISIS within the focus value chains.
- Phase 2: Profile the existing SMEs and VCISIS to assess their structure, performance and sustainability.
- Phase 3: Complete gaps from Phases 1 & 2; determine and articulate needs and objectives for investment/ interventions to build new and/or strengthen existing SMEs and VCISIS in the two countries; produce a baseline of the current situation, presence and performance of SMEs across the focus value chains