Published on 11/04/2025
The Committee on Agriculture, Animal Industry, and Fisheries has recommended a phased increase in funding for the Agro-Industrialization Programme, advocating for a rise in its budget allocation from the current 2.4 percent to 5 percent of the national budget.
This, the Committee says, 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 by Committee Chairperson Hon. Linda Auma, who presented the committee report during the House sitting chaired by the Deputy Speaker, Thomas Tayebwa, on Thursday, 10 April 2025.
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 Shs2.448 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.
In addition, following the rationalization of government agencies, the Ministry of Agriculture has absorbed responsibilities previously handled by other agencies, such as the Uganda Coffee Development Authority (UCDA), Dairy Development Authority (DDA), Crop Development Organisation (CDO) and National Agricultural Advisory Services (NAADS), without a corresponding increase in funding. The Ministry’s budget has dropped from Shs1.182 trillion to Shs806.94 billion, further straining its capacity to deliver services effectively.
Key gaps highlighted by the Committee include Shs15 billion for coffee seedlings and Shs5 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 soya, along with vital agricultural inputs like seeds and fertilizers.
To address the challenge of mechanization, the committee proposed Shs105 billion to scale up the national tractor scheme, aiming for the acquisition of 300 tractors per year over the next three years.
Additionally, MPs highlighted the underutilization of Uganda’s arable land, where only 35 percent of the land suitable for agriculture is currently used—and recommended Shs75 billion to establish mechanization centers. They also called for Shs57.43 billion to close irrigation infrastructure gaps, including the construction of valley dams and water reservoirs.
During the debate, several MPs supported the committee recommendations. Hon. Lee Denis Oguzu (FDC, Maracha County) criticized 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.
Hon. Abdulhu Byakatonda (Ind., Workers Representative) voiced concerns over the government’s insufficient attention to the agriculture sector, which employs more than 70 percent of the population.
Similarly, Hon. Stella Atyang (NRM, Moroto district) 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.
Hon. Helen Nakimuli (NUP, Kalangala district) praised the inclusion of support for the Fisheries Protection Unit but called for further funding to support fishing nets and to subsidize boat engine taxes, which currently cost up to Shs10 million.
In response, Hon. Fred Bwino Kyakulaga, Minister of State for Agriculture, expressed support for most of the proposals in the committee report and pledged to work towards addressing the identified budgetary gaps in the coming financial year.
