AGRIBUSINESS

INCUBATION CENTRE
(AGRIBIC)
CONTACT
E: ceco.dsuganda@gmail.com
T: +256 772 452 945
AGRIBUSINESS INCUBATION CENRE (AGRIBIC) AND FORT-PORTAL FARMERS EXPO. CONCEPTUAL FRAME WORK

GOVERNMENT – PRIVATE SECTOR

MAAIF, NAADS/OWC E.g Banks and other cooperate companies

PARTNERSHIPS
Extension
Learning and

addition
Value
AGRIBUSINESS INCUBATION CENTRE (TAGRIC)

5 acres Space

NEW KNOWLEDGE + SKILLS + Technological Transfer

Individual Farmers from Bukwali

Private company Demonstration
Demo

Farmers
Local and East African Market Farmers
Introduction

 This is a civil society/Private sector development Initiative to improve the social and economic welfare of all
peoples across their political, religious and ethnic affiliations by contributing to human capital development. The
project comes off the back drop that, the people in the region are lagging behind in many development
indicators. It is therefore anticipated that, this initiative will be in position to push and change the social and
economic situation of over 150,000 farmers over a five year period.
 Over 70% of the people in region derive livelihood from farming. However, the sector is yet to provide high value
added jobs especially for the youth. Amidst climatic changes, the agricultural sector needs to urgently respond
to Green economy demands. Apparently, the Tooro/Rwenzori region is considered East Africa’s food basket
because of her high production and productivity which is supported by fertile volcanic soils. However, the region
still faces higher levels of poverty (over 35% of the population are below the poverty line) and the region suffers
high malnutrition levels especially for children under the age of 5 (41%) (UBOS 2016).
 The Agribusiness Incubation Centre is designed to become one of the many solutions to the development
challenges of the region.
 Once the incubation Centre has been set up, it is expected to benefit over 150,000 farmers, through the
incubation of 50 projects across the five selected value chains over a 5 year project period.
 The project will be a joint venture between, Civil Society, the Private Sector, Local Government and other
development interested institutions like; the Tooro Kingdom.
Justification of the Incubation Centre

As already stated in the introduction, Uganda is an agro based economy. Currently

agriculture contributes about 24 % to the country’s GDP. Largely, most of Uganda’s
population (over 70%) including the people of Tooro/Rwenzori depend on agriculture for their
livelihoods. However, despite both government and individual farmer efforts, the agricultural
sector is still one of the most under paying sectors. Currently an ordinary household in
Tooro/Rwenzori earns between UGX 800,000- 1,600,000 per year from their agricultural
produce (Average of 280.560B. Per year). This income is from the sale of Raw material with no
value added. This is so, because of the low financial investment by government and the
private sector into the agricultural sector whence low value addition.
On the one hand, the country continues to experience high youth unemployment
challenges- and very few youths are engaged in the agricultural sector due to its limited
returns. At the same time, the agricultural sector continues to present employment
opportunities, but only and only if large investments are done to add value to agricultural
products.
The Agribusiness Incubation Centre (AGRIBIC) seeks to explore this opportunity by investing in
the higher ends of the agricultural value chain, whence attracting the youth into the
agricultural sector and increasing employment opportunities for the youth – not in the far way
future.
Enterprises/Value chains in Incubation

 The following agricultural enterprises have been selected as the priority

enterprises at the Agribusiness Incubation Centre.
 Coffee- Game Changer
 Bananas
 Fruit Processing
 Maize- Game Changer
 Cassava - Game Changer
 Tomatoes- more youth led
Total estimated population targeted here = 150,000 people
Focus of the Incubation Centre

The incubation Centre seeks to;

 Promote value addition to the selected Enterprises.
 Provide on spot – extension service (internal and external) to farmers both
during the Fort-Portal Farmers Expo and after the Exposition.
 Share knowledge both within and outside the incubation Centre.
 Provide Market and business Linkages across East Africa
 Provide an opportunity for Technological Transfer – to farmers
 Provide on-spot technical assistance and training from experts to
farmers/agriprenuers in the incubation Centre
How will the incubation Centre Work

 Each year, the incubation Centre will receive agribusiness proposals from aspiring
agriprenuers from Tooro/Rwenzori region for only the core enterprises being promoted by the
Centre.
 The proposals will go through a 3-stage rigorous assessment by experienced business
assessors. The stages will include; a) application and listing applicants with required
benchmarks a) Individual presentation of proposals to a select panel of assessors and
selection of convincing proposals c) Final Selection of proposals to be supported under the
incubation.
 The proposal that goes to the third stage will be given the opportunity to be incubated at
the center for 1 year only.
 During this one year, the business under incubation will receive mentoring from experienced
business experts, given a 30% Start up while at the Centre including using the Centre
Equipment. The Centre will create and facilitate market and business linkages for the
business under incubation at the Centre. While still at the Centre, the business will be assisted
to register, acquire a trading license, and certification by UNBS. In addition, the business that
is still under incubation, will be mentored in cooperate governance.
 After one year, the business under incubation will exit the Centre and become an
independent agribusiness.
Target

 The project is targeting men and women agriprenuers in Tooro/Rwenzori

region,
 Farmers and
 Regular business entrepreneurs interested to become agriprenuers.
Expected outcomes from the
Agribusiness Incubation Centre
 Value added to at least 6 agricultural enterprises/value chains, including
attaining a Tooro Branding into the East African Market.
 Creation of more than 15,000 jobs over a 5 year period
 Technological, skills and knowledge transfer across Tooro/Rwenzori
Farmers
 Increased marketability of Tooro/Rwenzori region agricultural products in
the East African Market
 Increased household incomes (from the current average of 280B per year
from agriculture) as a result of value addition, and marketability of
products.
 Trained and mentored 100 agriprenuers over a five year period.
 Contribute to the development of the agro- Cottages Industry in the
region.
Immediate Deliverables

1. Construction and setting up the incubation center facility

2. Acquisition of equipment to support value addition for various products.
3. Soliciting external expertise (10-15 experts) to support the training and
mentoring of agriprenuers in the incubation Centre, including Hiring regular
personnel like incubation Centre CEO, managers, and supervisors of the
Centre.
4. Solicitation and appraisal of agribusiness incubation Proposals
5. Incubation of 100 agribusinesses/ 20 agribusiness per year.
6. Production of 2 incubation Centre products ( coffee and Maize milling) for
both local and the East African Market.
7. Setting up a call Centre for farmer advice and providing market information at
the incubation Centre
 The Agribusiness Incubation Centre
approach

 Production of Incubation Centre Trade Mark Products from Coffee and

Maize which in the long term will support the sustainability of the Centre.
These will remain a monopoly of the incubation Centre.
 The second approach is where the Centre will receive agribusiness
proposals from enthusiastic agriprenuers targeting any enterprise in the
agricultural sector. Such proposals will only be accepted after going
through a 3- stage appraisal process to prove that they deserve
incubation and will be given a 30% start up of their business capital of their
business plans while at the Centre.
 Such agribusinesses will be incubated only for 1 year and new ones
recruited.
 Activities related to individual out
puts/ Budget
Out put
1. Start up capital Acquisition
2 . Construction and setting up
the incubation center facility
3. Acquisition of equipment to
support value addition for
various products.
4. Soliciting external expertise
(10-15 experts) to support the
training and mentoring of
agriprenuers in the incubation
Centre.
Related activities Estimated Cost in UGX
1.1 In country Lobby meetings UGX 105 M
1.2 setting up of MoUs with various companies, organisations,
and Government.
1.3 Media promotional Activities on TV and Radios
1.4 Diaspora Lobby and fundraising meetings
2.1Labor- hire of a construction engineer for designs and BOQs estimated at UGX 350M
supervision, Labour cost estimated at UGX 50M.
2.2 payment of wages for other laborers
2.3 Buying construction materials, Total UGX 400M
3.1 Solicitation of Profomas for relevant Equipment in specific Equipment and Tax cost UGX 20 Billion for all the enterprises
value chains (Tomato, Banana, Meat packaging, maize,
cassava, Fruits) to process and package
3.2 Purchase of Equipment Total Estimated Cost UGX 20 Billions
3.3 Payment of Taxes related to importation of equipment
4.1 Creating solicitation for both volunteer and paid expertise Total Estimated cost of UGX 250M.
4.2 Media advertising of the adverts
4.3. Shortlisting and recruitment of expertise
4.4 Appointment and contracting of personnel and expertise.
 Activities related to individual out puts
Cont……
5. Solicitation and appraisal of
agribusiness incubation
Proposals
6. Incubation of 100
agribusinesses/ 20 agribusiness
per year.
7. Production of 2 incubation
Centre Trade Mark products (
coffee and Maize milling) for
both local and the East African
Market.
8. Setting up a call Centre for
farmer advice and providing
market information at the
incubation Centre
5.1 call for agribusiness proposals for incubation in national Total Estimated cost of UGX 50M.
media
5.2 appraisal and assessment of potential proposals
5.3 selection of Proposals to be incubated.
6.1 provide 30% start up capita for selected Proposals Total Estimated cost of UGX 20 Billions.
6.2 provide mentoring and coaching for the selected
agribusinesses
6.3 Provide access to value addition technology at the Centre
6.4 Provide market and Business linkages of businesses under
incubation.
7.1 Production Incubation Centre Trade Mark Products (Coffee Cost here can be for raw material since already equipment
and Maize mill products) has been purchase.
7.2 Branding and Marketing of Incubation Centre trade mark
products Total Estimated cost of UGX 5 Billion.
7.3 Conducting product Research
7.4 Procurement of raw material
7.5 Recruitment and payment of salaries for staff manning the
equipment, marketing and conducting product research.
8.1 As Acquiring a toll free Centre number from UCC Total Estimated cost of UGX 550 million.
8.2 procuring the call Centre equipment
8.3 paying user service fees Total Start UP: UGX. 46.305 Billion (Forty Six Billions, Three
8.4 Under take market and Agricultural sector research hundred and five Million Uganda Shillings Only) for setting
8.4 Recruitment and paying call Centre staff up the incubation Centre.
 Implementation Plan
The Project will be implemented in the following phases;

Phase Timing

Phase One: Promotion of the Proposal and solicitation of Funds 2018/2019

Phase Two: Construction of Agribusiness Incubation Centre 2020

Phase Three: Acquisition of Equipment 2021

Phase Four : Recruitment of incubation Centre Personnel 2022

Phase Five: Call for potential incubation proposals and Assessment 2022

Phase Six : Start incubation of excellent Agribusiness projects and provide mentoring and 2023
coaching

Phase Seven: start production of Incubation Centre Trade mark Products 2023

Phase Eight: Start incubation of Excellent agribusiness ideas 2023/2028

Potential Partners on this project

 Government of Uganda:-Through MAAIF/NAADS/OWC - major partners on the

establishment of the Centre.
 Civil Society
 CECO-UGANDA, a not for profit org. Lead the organizer of Fort-Portal Farmers Exposition
and have been at the helm of conceptualizing the Incubation Centre together with the
Tooro Elders. This a company Limited by Guarantee and located in Fort-Portal Town.
 Isaazi Elders Forum- is a public Trust made up of Senior elders from the Tooro region. These
currently lead the Tooro Peoples Conference, an annual platform to spur development in
the Tooro Region. The conference has set agriculture as a priority in the development
agenda. Their role will be in mobilising the people of Tooro to benefit and support the
intervention. In addition, the Forum will promote the incubation Centre, and always carry it
under their banner for support.
 Tooro Kingdom- The kingdom offered and designated the Fort-Portal Farmers Exposition
land in Bukwali. The land is the immediate site for the centre. An MoU will be agreed with
the Kingdom before the centre is established. Further more, the kingdom will mobilise
other partners and Kingdom subjects to support and participate in the project.
 UNBS. We shall interest and partner with UNBS for the purpose of supporting product
certification.
sustainability

 Produce and market coffee and Milled products- branded Products of

made our region, Uganda. The income generated will be re-invested into
the more production and development of the centre
 Use of volunteer expertise to run and manage the incubation centre (using
local and international volunteers)
 Assumptions

 That Prospecting partners, especially government of Uganda will, find the proposal fitting
into their national development plans and provide at least 70% grant to start off the
project.
 That banks and investors will find the project a viable venture and invest in their funds.
 That the people of the Tooro/Rwenzori region will support the development of the Centre
and also buy the products by the Centre and agriprenuers.
 That all the partners involved in the project design shall remain cooperative until the
project results are realized.
 That all the other farmers who are not located in the Tooro region shall find the incubation
Centre a viable initiative and support it to grow.
 That the Tooro Kingdom shall continue to support and don’t midway change plans for the
land on which the incubation Centre is located.
Risks

 Likely politicization of the project, by some of the local politicians and the Centre losing a
business focus.
Measures: Limit politicization of the project as much as possible and keeping it focused on
business. For this reason, the business will hire a highly experienced CEO whose contract will
be renewed based on performance.
 Losing land on which the project is located.
Measures: Working with government to provide alternative land resources to the project at
any time it is required. A through assessment and agreements will be made before the
project starts on any land that has been offered for the project.
 Investment in heavy and Brand new equipment without necessarily these equipment
making immediate profit.
Measures: Regular maintenance and supervision of equipment usage by incubators.
Actually, the incubation Centre equipment shall remain on 24hr surveillance by the Centre
management. Most of the equipment will also be insured incase of force majeure situations.