Gods grace research bureau: Why poverty persists

Gods grace research bureau: Why poverty persists: The major objectives of the Poverty Alleviation Projects are to increase income earning opportunities among the poor and to improve the ...

Gods grace research bureau: HUMAN TRAFFICKING " AGLOBAL CONCERN"

Gods grace research bureau: HUMAN TRAFFICKING " AGLOBAL CONCERN"

Gods grace research bureau: MALNUTRITION VS HUNGER

Gods grace research bureau: MALNUTRITION VS HUNGER

Gods grace research bureau: LUCRATIVE BUSINESSES FOR YOUNG ENTREPRENUERS

Gods grace research bureau: LUCRATIVE BUSINESSES FOR YOUNG ENTREPRENEURS: Businesses for Starters with anxiety to prosper yet the capital is little It’s becoming increasingly difficult to make ends me...

LUCRATIVE BUSINESSES FOR YOUNG ENTREPRENUERS

Businesses for Starters with anxiety to prosper yet the capital is little

It’s becoming increasingly difficult to make ends meet with just one source of income. Thus, more and more people are investigating the possibilities of starting their own extra-income business. Most of these part-time endeavors can be started and operated from the comfort and privacy of the home.

However, before you start, the first thing you must do, is some basic market research. Find out for yourself, first-hand, just how many people in your area are interested in your proposed product or service, and would be “willing to stand in line and pay money for it.” This is known as defining your market and pinpointing your customers. The more precise and detailed your plan; covering all the bases relating to how you will do everything that needs to be done, the easier it’s going to be for you to attain success. It pays to lay it all out on paper before you get involved, and the clearer you can see everything before you start, the better your chances for success.

Have you always wanted to work at home using your backyard as an office but never had a clue of a profitable money making idea to pursue? Well, I advice you read on because one of these 18 money-making ideas can be your blueprint for success.

Profitable Businesses You Can Start to alleviate poverty

Rabbit rearing

The domestic rabbit, Oryctolagus cunniculus, are prolific breeders, which produces large quantities of tasty meat. Their rate of production is faster than that of pigs, goat or sheep. Rabbits have very short gestation period (27-33 days) and can rebreed immediately after giving birth. A breeding doe (Female) can produce at least 5 litters per year, with an average of 6 kits per litter; if well managed under simple conditions. With simple 15% mortality at most, about 25 of the kits will reach 3kg within five to six months.

Party Equipment Rentals

Renting party equipment has become big business particularly in many big cities. Public address system, Canopies, chairs, stage platform, ice block, drums, cooking utensils, table cloth and other party equipment are in hot demand by party organizers. Your initial step is to find out fees charged for items and for how long. Then you should investigate the cost of making or buying some of these items. All you need to do is to get in touch with the event managers in your area and make sure you inform your neighbor that you offer such services

Laundry/ironing service /clothes cleaning

Everyone has dirty clothes for laundry and ironing, but many of us do not have the time to do it all. This is where you would come in and make money by doing all the laundry and ironing for other people. More and more adults are in the work force, leaving less and less time for the necessities in life to be done right or even done at all. If your backyard is large enough to store all the clothes, sort the clothes and start making money, then this business could just be for you.

Firewood Service

With the price of both fuel and oil rising, many people are turning back to wood stoves and fireplaces to cook their food. Wood is easy to burn and is less expensive compared to oil and gas. If you have access to any type of timber, woodland and trees, you can make your backyard a cash cow, providing chopped and split wood to those who are using wood for cooking, you need a few things like chain saw, axe, ropes, but these are rather minimal compared to what you can be making. You will be responsible for cutting; if you are not strong enough, you can hire somebody to do this for you. You will deliver wood to houses and retailers.

Hand-Made Carton Production Business

It is amazing to know that the everyday carton that you see lying fallow by the roadside can actually be turned into wealth just with your bare hands.  A carton can also be called a box. Cartons create impact and visual interest through print, colour, surface design and shape. There are basically two types of carton package, they are heavy and light packaging cartons your customers are cosmetic shops, pharmaceutical fast-food, supermarket , cottage producers, Distillers, beverages company, etc. You do not need to fear competitors who produce with machine. Just concentrate on servicing SMEs that is gradually emerging in AFRICA. The capital needed to setup a handmade carton business could be as low as $100.

Horticulture/Gardening Business

Horticulture is the study or practice of growing flowers, fruits and vegetables. It also involves the use of iron rods in garden. The soft aspect has to do with the plants itself and it varies. It involves growing of lawns, plants, planting edges, orchard plantation, etc. The good thing about this business is that you can start with whatever you have. You can start with $2000 or less. You can even start with zero capital. You can start by planting grasses or plants in a very small portion around your home. Nurture it well. Before you know it, people are admiring it and are asking you if you can do it for them. You can also start by doing it for free. Tell them to give you three months. By the time they see the outcome, no matter how small they will be forced to give you something and even give you more jobs and contacts.

Fish farming

Over the years, quite a few people have made fortunes from fish farming, as the population is swelling and protein needs are far outstripping the available supply. Food is always a winner if done well. Fish farming is a sure bet business if you put the right structures in place. More and more people are turning to fish for its low cholesterol protein. All you need to do is to get a space in your backyard or construct tanks, buy finger lings for between $10 to $20 and feed them for 4 to 6 months, then sell from between $200 to $1,500 depending on weight and size. You should be able to monitor the tanks for hygiene issues because if it is not managed well, it could wipe out your investment.

Herb farm

Herbs are tremendously popular these days; from the smallest shop to the largest discount warehouse, you will find medicinal herbs, culinary herbs, and herbal teas, baths, candles and aromatherapy essences. You can start out small, growing your herbs in a large backyard or renting inexpensive land. You will need a solid working knowledge of growing and nurturing herbs. Your customers can be wholesale distributors buying for health product manufacturers, grocery chains and restaurants, or you can sell directly to these businesses yourself.

Chalk production

The chalk manufacturing business is very lucrative in Nigeria today because the market is large and the supplies are few. Chalk is used by government and private schools, Universities, Polytechnics, Colleges of Education, Colleges of Agriculture, Schools of Nursing etc. Most of the very few existing chalk producers today hardly produce standard chalk because they lack the expertise. You can do this business right from your backyard. It can be a one-man business, a family business, or a large enterprise.

Set up a small poultry

Poultry is a business you can start from your backyard with 50 to 500 birds, with between $1,500 to N300,000 depending on the cash at hand. These amounts include cost of birds, the pen, feed and medication. Get somebody who is experienced to help you set up the pen. You can source woods directly from sawmill to lower the cost. Waste management in poultry is very vital; if not properly handled, it will affect the growth, production and bird performance. Whatever aspect of poultry you intend to go into is profitable. A single bird can give you an average of 730 eggs within 2years before you sell it off for say $500 or $600.

Production of candle

With erratic power supply in the country, there is no doubt that production of candlestick is still a money-spinner. A sizeable group of Africans rely solely on candle to battle the erratic power supply. With $100 you can have a candle mould, which produces 16 candle sticks at a time and go about 50 times a day translating into 800 per day. This is a situation when you are starting with $100 to $500. To produce the 16 pieces does not take you more than 10 minutes, just melt your wax, throw it in the mould, and it congeals in 5 minutes, throw in another wax, which you must have melted, while the previous one congeals and you go on and on. So instead of starting with $1, 000 – $1500, you can actually start with $300. The startup requirements are mold, which cost about $75, Wax $50, Thread $50, heat source $50, Bowl, Packaging Nylons, $50, Ceiling Machine $25 and logistics.

Glasscutter farming

Grass-cutter is the second largest rodent in Nigeria and it is endemic in Africa. It breeds successfully in captivity and is capable of reproducing twice a year with litter size varying from two to six. They are primarily vegetarians and can be raised to maturity entirely on fresh grasses. They prefer plants with high moisture content and soluble carbohydrate. Field studies reveal that they do not burrow so they may be caged or reared in a fenced pen on the ground. Grass-cutters are worth considering for husbandry in the humid forest where poor grazing and harsh environment limits the performance of conventional livestock.

Liquid air freshener production

Liquid air freshener is a product that plays a strategic role in homes, offices etc. Its demand cuts across sex, age, groups and social strata. This product can be prepared from your backyard as all the chemicals involved are user friendly. Machines are also not required when producing in small or medium scale. All the chemicals required are locally available all year round. It is also heart-warming to know that the production technology is a very simple one. This product that has 80% water content has a high profit yield. There are high qualities and well-designed plastic containers that will give the product an irresistible finishing touch and they are all locally available.

Snail farming

Snail meat has been severally affirmed as a very safe and nutritious delicacy. The best period to commence snail farming is the rainy season, you can start with about 50 – 60 snails to have a good knowledge of how snail breeding works. Make sure you go for fully matured and big snails; the African giant snails are recommended. You can get these snails from the market throughout the country, or from snail farmers. Snails are sold in bunches of 20 pieces each and price depends on the size- the bigger ones are sold for between $20 – $30 per bunch. It is better to buy the big ones because they can hatch after about 35 days on location. About $100 should get a new entrant started in the business.

Ice block production

Ice block sales business involves the use of deep freezer to make ice block in plastic containers or polythene bags. The business involves the production of solid ice block by putting clean water in any small container in order to make difference sizes of ice block available to consumers of different categories. This business thrive well in areas where there is incessant power outages, and also in over-populated places like motor parks, market places, schools, commercial and business areas; any place there are human beings and activities that demand a cooling off either by a bottle of cold soft drink or a sachet of pure water. Over time, a lot of manufacturers of these pure water machines are partnering with some financial institutions and are presently providing financial assistance to interested investors.

Plantain chips

After removing the skin, unripe fruit can be sliced (1 or 2 mm thick) and fried in oil to produce chips. If the chips are made from sweeter fruits, they are called ‘Banana chips.’ They can also be sliced vertically to create a variation known as Plantain strips. Just make sure you put your label. The more you produce, the more money you make, because majority of Nigerians love plantain chips.

Yam flour

Processed yam flour is a simple method for the preservation of yam and making them available at our meal table all year round. Besides, it enhances the storage process and the movement of the product.  The preservation process may be supplemented with the usage of chemical preservatives, which are common in Nigeria markets. At the moment, only one multinational firm, Cadbury Nigeria Plc and few private investors have invested in this sector of the economy. Machinery required is available locally; they are the tuber drying machine, hammer mill, grinder sifter, and packaging materials.

Custard manufacturing

In Africa, almost every ethnic group makes a different variety of food out of corn. In Nigerian cities, people are used to what is called Ogi, Akamu; this is cornstarch. When the Europeans came, they came with what they called Custard. But it was later found out that the only difference is the coloring and flavor that was added to the corn. It is very easy to produce custards. Raw materials and formulation includes Corn starch: premix 1 and premix 2 corn starch 1Kg and corn starch 2kg. Tertrazine (T.T.Z) 200grams, Sunset yellow 50 grams, Flavor 1 litre. You can package it in sachets. It is very easy to market also, particularly in big towns and cities where people are used to modern life.

Gods grace research bureau: Uganda’s emerging oil industry is a reckon for Inv...

Gods grace research bureau: Uganda’s emerging oil industry is a reckon for Inv...: Uganda’s emerging oil industry has attracted many investors to the country, including players like Total and Tullow Oil, as well as suppl...

Gods grace research bureau: Uganda’s emerging oil industry is a reckon for Inv...

Gods grace research bureau: Uganda’s emerging oil industry is a reckon for Inv...: Uganda’s emerging oil industry has attracted many investors to the country, including players like Total and Tullow Oil, as well as suppl...

Uganda’s emerging oil industry is a reckon for Investors

Uganda’s emerging oil industry has attracted many investors to the country, including players like Total and Tullow Oil, as well as suppliers to the industry, such as Halliburton and Baker Hughes.

 

“The discovery of oil has helped to kick-start the economy of Uganda,” Asteway Desta, managing director of logistics company DHL Express Uganda, told How we made it in Africa. “When I came here in December, I could just feel the buzz when I go out on the streets. It has attracted lots of foreign direct investment. We have many more international companies investing now in Uganda than ever before.”

This has resulted in more shipments for DHL and the Ugandan branch is currently growing at an average of 15% per year.

The country’s growing number of small and medium enterprises (SMEs), predominately local traders importing a variety of products into Uganda, has also been identified as a huge potential market for DHL.

“If you go into downtown Kampala there is an area called Kikubo where you have got importers… they are importing everything – you name it. From photo frames to postcards to furniture to clothing, shoes, accessories, building materials, spare parts – everything is imported in this country and most of these people that are importing are not big, large-scale companies like you would imagine. They are actually small and medium sized enterprises… Every month they import in bulk different items, and most of them are not aware that DHL’s service offerings can assist them in their international trade.”

“So for us, if we create awareness in that particular group and introduce them to the idea that DHL is a transportation company that is accessible for them to use… then I think there is a big potential there,” she continued.

Desta describes Uganda as a “cash economy” and she has found that many of their customers, especially these SMEs traders, prefer to deal with DHL on a cash basis. For this reason DHL is expanding its retail footprint in the country and has opened 13 more service points this year alone.

However, like in many places across Africa, transport infrastructure is the major challenge for DHL’s business in Uganda. While Desta said that the government is investing in major highways and some inter-city roads, the streets in Kampala require an upgrade and are highly congested.

“Therefore, going forward, what we are doing is… we will be using motorbikes in order for our couriers to be able to navigate through the traffic more easily and allow them to get to their destinations faster,” she explained. “One of the biggest public transportation means in Kampala are motorbikes. Like you would call a taxi in another part of the world, here you would call a motorbike to come and pick you up. So we are also moving in that direction. We are reducing the number of cars and replacing them with motorbikes so our couriers can find it easier to navigate through the traffic.”

Desta has been the DHL country manager for Uganda for six months, and while she has had to relocate her family to the country, she has no regrets. “Doing business in Uganda is easy because the people are friendly and accommodating to foreigners.”

 

The World Economic Forum’s Travel and Tourism Competitiveness Report 2013 ranked 140 countries according to attractiveness and competitiveness in the travel and tourism industries. One of the indicators used to determine these rankings looked at how welcome tourists and foreigners feel in each country. Under the category ‘Attitude of population toward foreign visitors’, Uganda ranked 10th in Africa (and 40th in the world) for its friendliness to tourists.

“They are extremely good natured and welcoming. You get a warm reception wherever you go. And this is consistent throughout the country,” added Desta.

Drawing from her experience, Desta has the following advice for international companies considering entering the Ugandan market: “Create a transparent relationship with government; always ensure you’re compliant with the laws of the land; get a respectable lawyer to advise on various agreements; get your team motivated (embrace local people); and be visible – customers appreciate interaction with top management.”

Investiment opportunities in Uganda

Uganda to build oil refinery

Support for an in-country oil refinery has gained momentum following the presentation of a feasibility study report to the Uganda government this month by Swiss engineering company Foster Wheeler.

Nationalists in the government have been insisting the country’s oil be processed locally, while the oil companies have let it be known they prefer a refinery in Mombasa and an export pipeline for surplus crude.
The Swiss consultants’ report shows that an oil refinery inside Uganda would create many spin-offs for the domestic economy in the form of direct employment and secondary industrial activities.

While oil companies want crude exports because they can thus recoup their investment faster, the Norwegian funded study shows that Uganda would be saving over a billion dollars annually if it were to build its own oil refinery and the economy would gain from the refining process through creating employment opportunities and taxes.

The Ministry of Finance has said it should be possible to develop the refinery at Hoima, not from its own coffers but with external funding, which was the least of the problems, an official said.

With the political will in place after President Yoweri Museveni declared his willingness to go it alone if need be, raising the funds for the refinery with scientific evidence now in will be quick and easy.


There are already willing partners in the shape of Iran, China, Libya and Norway. While China and Libya have shown interest in building an oil refinery in Uganda, Iran has indicated that it is ready to fund the whole value chain, adding value to the oil and building a refinery.

Norway, a partner since 2006, has been supporting capacity building, establishment of competent institutions and transparency in the oil and gas industry through its Norad oil and development initiative.
The Foster Wheeler study also shows that a mini-refinery with a capacity of 15,000 barrels per day, which is
Uganda’s daily consumption rate, would cost $1 billion.
It is projected that Uganda can produce 350,000 barrels of oil a day by 2018, if the right development plan is adopted.

So far, estimates put Uganda’s explored oil reserves at between 1.7 and 2.5 billion barrels.
But transporting the crude oil by pipeline to Mombasa would, according to the report, cost $1.7 billion, while the southern route to Tanzania would cost $2.3 billion.

Libya’s Tamoil is in charge of the project to upgrade the Eldoret-Kampala pipeline while Noor Oil and Industrial Technologies (NOIT), a US-based multinational oil firm, won the contract to build a refinery in Dar es Salaam and a 1,500 kilometre pipeline to connect it to other landlocked East African countries.

The oil companies argue that it would not be profitable for Uganda to refine its oil in-country. But while they look at the quick investment returns, Museveni is looking at spin-offs like creating employment.

The need for employment is 400,000 jobs per year against less than a quarter that amount that are on the market. Whether a refinery would make a dent in that figure is debatable (see separate analysis).

At present, neither India-based Essar Group, which runs KPRL’s Mombasa refinery, nor Tanzania have the capacity to refine the Uganda crude oil, which the report says is waxy and heavy with sulphuric acids.
This peculiarity of the crude also means that using pipelines to either Kenya or Tanzania would be very expensive.
The waxy crude solidifies at room temperature, so the pipeline would have to be heated and at every 25 kilometres a “pig” station would have to be installed to remove the wax.
However, the report did not take cognisance of a recent announcement by the Essar Group that the Mombasa refinery will undergo a major upgrade from a processing into a merchant refinery, which can buy its own crude and process it.
President Yoweri Museveni has invited many oil experts, among them Canada’s Claude Landry, an engineer with the OPTEC refinery, who advised that refining the oil is economically viable.

Changing gears

Debate around local content in Uganda’s oil industry tends to get tetchy, amid accusations that oil companies are only paying lip service to the whole idea of local content. However, other business players are finding new ways of tapping the opportunities in the industry.

The Uganda Chamber of Mines and Petroleum, an association of players in the oil and mineral industry, supports monthly cocktails where the members – both Ugandan and foreign – can interact and find ways of building and hiring Ugandans.

Another association, the Oil and Gas Service providers, has been formed with the idea of growing Ugandans’ participation within the oil industry.

Other initiatives have been partnerships within the logistics industry. The logistics industry is supposed to play a key role in mainly transporting heavy machinery from the East African coast to the oil wells in western Uganda.

To do this, there have been mergers and buy-ins within the logistics industry as international firms eye the business in the oil industry. Still, foreign interests with ample financial muscle and experience continue to attract the attention of the upstream oil companies.

The law

The Petroleum (Exploration, Production and Development) Act, 2013, which became effective in April this year, is supposed to set the stage for the growth of local content. However, the law can only do so much.

Bukenya Matovu, the spokesperson for the ministry of Energy and Mineral Development, said though the petroleum industry presented new employment opportunities for Ugandans, the public had to play a role and acquire the necessary skills in order to be absorbed within the sector. The act compels oil companies to employ Ugandans if they qualify for the job. It also makes it mandatory for oil companies to have plans of technology and skills transfer.

“The licensee shall within 12 months, after the grant of the licence submit to the Petroleum Authority for approval, a detailed programme for recruitment and training of Ugandans in all phases of petroleum activities and shall take into account gender, persons with disabilities and the host communities,” the act reads in part.

The act further compels oil companies to submit a report to the Petroleum Authority on achievements of trainings and recruiting Ugandans on an annual basis. Part of the training, the act emphases, might include offering Ugandans scholarships and financial support towards their education. To this end, Tullow oil and Total have given several Ugandans scholarships to further their studies.

Zakalia Lubega, the Corporate Social Responsibility Manager at CNOOC, reveals the company will soon launch its own scholarships. Besides employment, another important aspect of local content is buying local products like food, construction materials whenever they are available, as opposed to importation.

The act compels a licensee, its contractors and sub-contractors, to give preference to goods which are produced or available in Uganda and services which are rendered by Ugandan citizens and companies.

In case such goods or services are not available in Uganda, the law provides that they [goods and services] shall be provided by a company which has entered into a joint venture with a Ugandan company provided that a Ugandan company has a share capital of not less than 48 per cent of the joint venture.

The licensee is also required to, within 60 days of the end of each calendar year, provide the petroleum authority with a report of its achievements and its contractors and sub-contractors’ achievements in utilising Ugandan goods and services.

Recently, there were reports that Tullow Oil was sidelining Ugandan firms in preference for foreign companies on grounds that the local companies did not have the required quality and capacity.

Regulations

Bukenya, the ministry spokesman, says although the law does not provide for sanctions, the regulations that the ministry is already drafting will seek to punish non-compliance.

“The law doesn’t have to include everything; it sets out principles and standards. The ministry is now drafting regulations to operationalise the law,” he said recently. The new regulations will repeal the Petroleum Exploration and Production Regulations 1993.

Since local content is already provided for in the act, Bukenya stresses that the new regulations are to focus on how, in reality, local content can be achieved.

“The regulations will demand that for expatriate staff, there is a Ugandan counterpart being trained to take over,” he said.

Under the regulations being drafted, oil companies will be given only three years to have expatriates on their books. And after the expiry of the three years, the expatriate’s work permit will not be renewed, paving way for a Ugandan to take over.

PEPD estimates that the oil industry will employ between 10,000 and 20,000 people. The act also establishes new institutions: the directorate of petroleum, the Petroleum Authority of Uganda, and the National Oil Company, among others.

Fred Kabanda, a principal geologist in PEPD, notes that the establishment of these institutions, coupled with other production and exploration activities, creates an excellent opportunity for Ugandans to participate in the sector.

“All these institutions will need qualified staff; oil companies that will be licensed will also need staff; so, this is an opportunity. Ugandans need to prepare themselves to tap into these opportunities,” Kabanda said.

Kabanda notes that so far oil companies have been compliant towards hiring local staff. For instance, Tullow recently noted in its 2012 Corporate Social Responsibility (CRS) report that up to 88 per cent of its staff in Uganda are Ugandans.

“Whenever we can, we offer Ugandans the first opportunity,” Cathy Adengo, Tullow Oil Uganda’s Assistant Corporate Affairs Manager, said.

Kabanda says 70 per cent of Total E&P staff are Ugandans, while the Chinese firm CNOOC is at 60 per cent.

Challenges

Despite the impressive figures, Bukenya says getting qualified and experienced Ugandans in highly technical areas in the industry still remains a challenge.

“When it comes to high technical areas like operating and engineering of rigs, we don’t have Ugandans there,” he said.

UGANDA'S ECONOMY SET TO BOOM DUE TO OIL MINNING

The spot price of natural gas remains subdued, but oil prices keep nudging toward the $100.00 level for West Texas Intermediate (WTI).

But in spite of the lack of conviction in spot energy prices, there continues to be good money in oil and gas stocks.

Countless oil companies have been doing very well on the stock market, and there is excitement within the industry that the oil and gas build-out, including the shipment of liquefied natural gas (or LNG, which is about 1/600 the volume of natural gas), is in a sustained period of economic growth.

Under the umbrella of the oil and gas industry, there are a myriad of growth stories in energy transportation and storage.

 Burning of renewable resources provides much of the energy in Uganda, though the government is attempting to become energy self-sufficient. While much of the hydroelectric potential of the country is untapped, the government decision to expedite creation of domestic petroleum capacity coupled with the discovery of large petroleum reserves holds the promise of a significant change in Uganda's status as an energy-importing country.

Uganda, classified as one of the world’s poorest countries by the World Bank, is on the verge of an oil boom after the discovery of crude in 2006. The government is seeking investment in improving electricity generation and transportation networks to drive economic growth intended to propel the country to middle-income status by as early as 2016.  

The country’s oil prospects are getting brighter after an additional one billion barrels of oil were recently announced as having been discovered, pushing the figures of commercially viable deposits to at least 3.5 billion barrels.

Energy ministry officials revealed the expanded find, which is a significant percentage increase in the proven deposits first announced in 2006. Mr Ernest Rubondo, the commissioner for Petroleum Exploration and Production, Ministry of Energy and Mineral resources , made the announcement last week at a conference organised by the Uganda National Chamber of Commerce.

“From about two or three wells we have increased our oil barrels to 3.5 billion,” Mr Rubondo said, answering a question on transparency. He further disclosed that out of 77 wells drilled so far, 70 have been proven to contain oil and gas. Uganda’s oil fields, he said, are showing a comparatively higher level of productivity when measured against the experience in other countries where the chances of oil discovery in an equal number of wells usually hovers at only 10 per cent.

“Thus far, $1.5 billion is the amount that has been spent in all the activities leading to the 3.5 billion barrels discovery,” Mr Rubondo said.

The even better news, according to the commissioner, is that exploration is still ongoing and more discoveries are expected along the way. Before the discovery of the additional one billion barrels, the country’s exploration efforts in the Albertine Graben shown estimated oil and gas reserves of 2.5b barrels. But, production has been delayed by contractual disagreements, tax disputes and infrastructural setbacks, according to the Energy ministry.

Parliament, which is investigating three ministers over allegations of accepting oil bribes, has also criticised the government for hiding information about the budding sector, amid suspicions of high level corruption.

Now, the oil companies invested in the sector, particularly Tullow Oil, want commercial exploitation to start immediately, saying it is unfair for them to hold their capital idle. At the same conference, Tullow Oil president in Uganda, Elly Karuhganga, said with neighbouring countries discovering oil in the region, investor attention could turn to them.

Mr Karuhanga advised that before this happens Uganda should allow the companies that have invested to start commercial production as exploration continues elsewhere. Block 1, found on the northern tip of Lake Albert, is operated by a local unit of France’s Total SA, while block 2 is operated by, Tullow Oil.

Total entered Uganda’s oil industry early this year after it signed onto a joint venture with CNOOC and took up a third each of British explorer Tullow Oil’s exploration assets in the country worth $2.9 billion.

According to Reuters, Total expects to drill a total of eight exploration wells in Uganda by the end of 2013, spending about $650 million on exploration and appraisal activity and seismic data acquisition.

Uganda is expected to conduct a licensing round for hundreds of square kilometres of exploration acreage after Parliament passes new oil laws expected by the end of this year. The government says only about 40 per cent of the Albertine Graben has been explored to-date and has stated it will be demanding tougher terms in new oil deals.

Africa the un tapped Economy

Engaging Africa

The single best strategy for engaging Africa over the long haul is renewal and expansion of the African Growth and Opportunity Act, signed by President Bill Clinton in 2000. It allows 40 countries in sub-Saharan Africa to ship products to the U.S. tariff-free.

The Africa trade agreement is, by all accounts, a success. Since 2001, African exports to the U.S. have grown by more than 500 percent, to $54 billion in 2011. The African Coalition for Trade estimates that the pact has created as many as 1.3 million jobs.

The treaty expires at the end of next year, but Obama should ask Congress to renew it now -- and to broaden the law’s impact. Currently 88 percent of what the U.S. imports under the agreement is petroleum products. To break Africa’s dependency on its extractive industries, the Brookings Institution’s proposed Africa Growth Initiative would give U.S. companies a bonus on certain investments -- a tax rate of zero on repatriated profits not derived from natural-resource removal. The idea, which could increase nonpetroleum investment by 20 percent with minimal tax-revenue losses, is worth considering.

Obama could do much more to improve trade relations. Trade Africa, one of four initiatives he announced while in Africa, focuses on an existing regional trade group, known as the East African Community, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda. In five years, trade among them has doubled; over the last decade, their combined output has quadrupled, to $80 billion.

The opportunity to build on this model may arise when U.S. and African officials meet next month in Addis Ababa to assess the trade picture. They should push to drop the complex tariffs, needless checkpoints and other customs barriers that impede cross-border trade. A coffee exporter in the East African Community, for example, requires 29 days to fill out paperwork, transport the product to a port, clear customs and load it aboard a vessel -- twice as long as it takes in Brazil.

Common Market

The African continent includes 54 countries, only some of which are large enough to warrant a multinational corporation’s attention. Why not push for customs agencies that use common technology and ultimately a single customs authority for the entire region? Or why not think even bigger and open talks over a continent-wide free-trade agreement, like Europe’s early common market? 

One problem is that U.S. exporters depend on an array of government agencies for financing. There should be a single investment-finance agency under a unified trade policy. The White House should also ask Congress to give the agency multiyear authorizations, so it can better predict its own funding, and the power to make equity investments, something now denied to the Overseas Private Investment Corp. 

None of this means much unless African nations get a handle on corruption, which stifles competition and impedes fair bidding. U.S. executives point to high levels of corruption as the single biggest reason they steer clear of Africa. Obama could play a role by insisting that African countries, in exchange for U.S. assistance, adopt the Extractive Industries Transparency Initiative, which requires governments to make regular audited disclosures of their oil, gas and mining revenue. Such disclosures make it harder, though not impossible, for corrupt officials to pocket illegal payments. 

It is in the U.S.’s interest to increase trade with Africa, not only to boost American exports, but also to promote U.S. values of transparency and the rule of law. (It is an added bonus that increased trade would also improve the U.S. position on the continent to compete with China, the world’s other superpower.) It is also in Africa’s interest to increase trade with the U.S., not only to expand its burgeoning middle class, but also to help lift out of poverty the millions of sub-Saharan Africans living on $1.25 a day or less.

If Obama demonstrates a long-term commitment, and demands fair play and transparency in return, he could vastly increase the flow of private money to Africa. The lives of millions of people would improve in the bargain. 

The U.S. has seen its percentage of investment drop in Africa as countries like China, India and Brazil increase their economic clout in the region, but experts say Obama's trip and emphasis on business opportunities could help bolster America's presence.

"We shouldn't view the participation of a country like China or Brazil in Africa as a bad thing," Obama said to reporters traveling from Senegal to South Africa. "It should be a signal to us, though, that there's great opportunity there and that we cannot afford to be left on the sidelines because we're still stuck with old stereotypes about what Africa's future is going to be."

Stephen Hayes, president and CEO of the Corporate Council on Africa and an opinion writer for U.S. News & World Report, says Obama's efforts will help forge a better public-private relationship that companies are seeking when it comes to expansion into the continent.

"One of the biggest problems we've got – and one of the reasons why China and India and the other countries are doing a lot better right now – is there's more coherency between public and private cooperation towards Africa," he says. "Nevertheless, there hasn't been a lot of communication between the private sector and the public sector in the U.S. as it regards investment in Africa."

It's also hard for American companies to get loans from U.S. banks to invest there, Hayes says.

[WHISPERS: Obama Met With Protests, Anger in South Africa]

Obama said he has been working on pitching Africa as a more stable region than in the past in hopes of wooing private investment.

"This is a message I'm delivering consistently – is ensure that there's stability and good governance so that American companies can reduce some of those risks that have nothing to do with business and have to do with will they be able to get their profits out, will they have to pay a bribe, will they have to find ways to negotiate with bureaucracies endlessly," he said.

Hayes admitted other factors have been inhibiting U.S. investment in Africa, including the lack of basic infrastructure like electrical power.

"It's still a difficult place, no doubt about it," he says. "No country in Africa, including South Africa, is meeting its current power needs and without power you can't expect a lot of investment right away."

That's meant that 75 percent of American investment in Africa has been in energy, Hayes says, but that is changing.

"We're beginning to see the IT companies like Microsoft, Oracle and IBM start to enter the African market much more aggressively," he says. "The consumer products groups – Colgate, Palmolive, Proctor and Gamble and Wal-Mart – are all starting take a more aggressive stand and so are more of the agribusiness companies.

Greater investment will bring a boon to the American economy as well as locally in Africa, Hayes adds.

"We need to do it badly for the sake of our own economy and for the long term relationships with African countries or any countries will necessarily gravitate to those countries that are investing in them," he says.

It's an issue that's also building bipartisan momentum on Capitol Hill, Hayes adds, calling the president's trip important if not a little delayed in coming.

"It would have been more significant four years ago, but it's better late than never," he says. "[But] it is significant, it's already bringing attention to Africa and the economic opportunities for the American business."

AGRIBUSINESS TO ERADICATE POVERTY IN AFRICA caution!**** do not accept farm gate prices >>>> process

Agri-food chains in Africa need to be upscaled, but in order to achieve this the right framework conditions need to be in place. In this context the workshop looked at the various components of agriculture food chains – from enhancing productivity at farm level, to upgrading value chains by empowering farmers' organisations and integrating them in strategic partnerships. It looked at how to respond to local, regional and international demand by adding value to commodities and at the roles of research, technology and innovation in the food chain, as well as access to finance, models of Public Private Partnerships, and the state of the (rural) infrastructure.

1. Fruit juice concentrate processing facility in Nigeria

Around 90% of the fruit juice produced in Africa is based on concentrates imported from abroad. Nigeria’s fruit juice market is projected to be worth more than US$2 billion per annum. Interested investors could have discussions with established fruit juice producers such as Coca-Cola Nigeria and Chi-Nigeria to investigate their quality specifications, volumes and potential prices.

2. Cassava value chain investment

While cassava is one of Africa’s main staple foods, the opportunities for the crop in ethanol, bio-fuel, processed foods, industrial starch and pharmaceutical applications have not been exploited. There is a huge market for starch in Nigeria and other countries, with strong demand from textile and food processing companies. Currently Nigeria’s local textile industry and food companies import over 90% of their starch requirements.

“One weakness along the cassava value chain is the absence of in-country large-scale cassava processing facilities, which could turn cassava from subsistence use into industrial use,” notes the report.

3. Cultivation of soya bean and other oil seed plants

“Soya bean has become a strategic commodity for sub-Saharan African countries,” says the UNDP. The crop’s importance in the food, animal feed and edible oil industries have grown in recent years. Sub-Saharan Africa however contributes only 0.2% to global soya bean output.

Africa presently has a large demand for soya bean related products – including soya cake and soya oil. BIDCO, a company with a presence in a number of east African countries, could process an additional 30,000 tons of soya beans using its existing processing capacity.

According to the UNDP, the demand for crude palm oil is even higher than that of soya beans.

4. Sorghum production

Sorghum has evolved from a commodity for subsistence farmers into a popular household and industrial crop. East African Breweries, Nigeria Breweries and Ghana Breweries have started using sorghum for beverage production. The report notes there are currently opportunities for the private sector to invest in sorghum production expansion and mechanisation.

East African Breweries is currently seeking farmers to produce sorghum on contract to reduce its reliance on more costly barley. It is expected that by 2015, demand in Nigeria for domestic use and exports to neighbouring countries will reach over 980,000 tons.

5. Intensive production technologies for fresh vegetables

The growth of modern supermarkets in Africa coupled with urbanisation and a rising middle class, has led to a high demand for quality vegetables that can be obtained using intensive production technologies.

Earlier this year How we made it in Africa reported that in some places in Africa, fast-food giant Kentucky Fried Chicken (KFC) doesn’t serve lettuce on its burgers. This is not to save on costs or due to a difference in local tastes, but rather because there are no local lettuce producers who can supply the quantities and quality required by KFC.

The use of intensive production technologies has transformed the horticultural industry in Kenya. West Africa holds considerable potential for the introduction and commercialisation of intensive vegetable production systems.

“The investment opportunity does not only reside in production but a strategic and integrated approach to market production equipment, transfer technologies and provide market linkages for producers,” says the report.

AGRIBUSINESS "A KEY TO FOOD SECUIRTY"

 In agriculture, agribusiness is the business of agricultural production. It includes crop production (farming and contract farming), seed supply, agrichemicals, farm machinery, distribution, processing, marketing, and retail sales.

Within the agriculture industry, "agribusiness" is used simply as a portmanteau of agriculture and business, referring to the range of activities and disciplines encompassed by modern food production. There are academic degrees in and departments of agribusiness, agribusiness trade associations, agribusiness publications, and so forth, worldwide. In this context the term is only descriptive, and is synonymous in the broadest sense with food industry. The UN's Food and Agriculture Organization (FAO), for example, operates a section devoted to Agribusiness Development which seeks to promote food industry growth in developing nations.

In the context of agribusiness management in academia, each individual element of agriculture production and distribution may be described as agribusinesses. However, the term "agribusiness" most often emphasizes the "interdependence" of these various sectors within the production chain.



Among critics of large-scale, industrialized, vertically integrated food production, the term agribusiness is used negatively, synonymous with corporate farming. As such, it is often contrasted with smaller
family-owned farms.

The ability of a robust agriculture sector to drive growth and enhance development continues to be a matter of lengthy debate. Whereas the government has for years failed to put serious attention to agriculture, its not so difficult for the sector to attain better standards, which include acting as a food security buffer, creating sustainable development and promoting international trade among others.

However, even with a well documented potential for agriculture, the government is reluctant to invest in the sector, which leave a number of questions among different stakeholders. Because less funding is provided by the government, the private sector seems to be channeling ways through which it can explore multiple opportunities particularly in the area of agri-business in order to uplift the sector.

Over the years, experts have urged the government to commit more resources to the agricultural sector in order to guarantee a transition from subsistence to modern agriculture. On the contrary though, the budget allocations for the past decade have been laughable for a sector that has the potential to bring about desired development.

For instance, in the 2012/13 budget, the sector was allocated 7 per cent of the Shs11 trillion resource envelope. This was from the 2011/12 allocation of 5 per cent. Far still even though there was an improvement the allocation still falls short of the Maputo Declaration which requires a 10 per cent allocation of the national budget to be made to agriculture. However, even if less is allocated to the sector, there are strategies that could remedy the growth of agriculture in Uganda.

Recently while addressing investors, President Museveni said the government was putting plans in place to construct solar-powered irrigation pumps in low land areas as one of the means to reduce the high cost of agriculture production.

The move, according the President, is a deliberate plan that seeks to uplift the sector and the economy in general. If implemented, the project will go a long way in developing agriculture. However, even if such projects are established, it remains a concern that a number of projects that have been launched to improve agriculture collapse without much addition to the sector.

Failed projects
Projects including Naads, Plan for Modernisation of Agriculture, Bonabagagawale and the Valley Dams have been disbanded or declared ineffective without much addition to the sector. Recently Mr Tress Bucyanayandi, the minister of Agriculture told Prosper that the government was aware of the opportunities and had committed enough resources to uplift agriculture.

“Each year, we make some progress in developing agriculture using available resources. We have worked on a lot of things including farmers’ education, providing improved seeds and animal breeds. Others which include, uplifting storage facilities, research and funding valley dams for dairy farmers among others have also been worked on.

However, Mr Francis Tendo, a farmer in Sembabule, recently told Prosper that the main hindrance to agriculture prosperity is limited funding, an issue which he says the government is reluctant to address.
He said: “The issue is that farmers don’t have sufficient funds. We have land but cannot put it to proper use because we lack capital. The government must assist us.”

Meanwhile Dr Lawrence Bategeka, a senior research fellow at Makerere University, believes that before the issue of funding is addressed, there is an urgent need for the government and the private sector to agree on a clearly mapped out strategic plan. “Yes funding needs to be increased but before that, we need to understand what we are funding. There is need for more thinking with the private sector taking on a watchdog role,” he says.

The fast growing demand for the country’s food crops and dairy products both within Uganda and beyond signal a great future for the agriculture sector.
Uganda’s location in the heart of East Africa leaves it as the immediate provider of both food crops and dairy products to emerging markets such western Kenya, South Sudan, and Eastern Congo among others, not forgetting the bigger western markets.

For example, data from the ministry of Agriculture indicate that earnings from the Dairy sector in 2012 shot up to Shs30 billion, more than Shs21 billion from Shs8.8 billion collected in 2011. A big chunk of the proceeds was generated from neighboring markets. Additionally, Ugandan farmers continue to export tonnes of raw maize and flour, rice, sugar, beans, tomatoes and potatoes among others to the regional markets.

The significant opportunities that exist in the agri-business sector are with no doubt an opportunity that the private sector needs to tap into. However, this comes with its own challenges. For instance, the private sector can invest in farming but can not construct roads to transport the produce. Additionally, the absence of an agriculture insurance scheme to protect farmers from natural hazards continues to be one of the sector’s biggest challenge.

The Insurance Regulatory Authority is currently working with other stakeholders to develop an agriculture insurance scheme with a hope of kicking off this year. Uganda is an agro-based economy with agriculture employing about 80 per cent of the country’s population. However, over 70 per cent of the above are subsistence farmers who basically rely on rudimentary methods of farming.

In chapter 4 of the recently launched vision 2040, agriculture is highlighted as one of those sectors that the government plans to transform from being subsistence to a commercial and export oriented sector.

But if the government is serious about this as one of the means of combating poverty, ensuring food security and attaining a middle class economy by 2040, it is only imperative that top rate planning and investment be given to the sector in order to unlock economic growth.

Agribusiness Opportunities

Opportunities to do business with Ugandan Agriculture are enormous. Some of them are stated hereunder.

Food grains

Fruits

Mango, apples, Papaya, Pineapple, Guava, Pomegranate, Lime, Sweet orange, Banana, Grape, Sapota etc.

Vegetables

Carrot, Cabbage, Cauliflower, Beans, Okra, Peppers, Tomato, Bell peppers, Gherkins, Onion, Peas etc.

Flowers

Rose, Coronations, Gerbera etc.

Processed Fruits and Vegetables

Fruit pulp, concentrates, flavors, extracts, frozen fruits, frozen vegetables, pickled products, assorted products.

Spices

Black pepper, Red pepper, Garlic, Tamarind, Ginger, Basel leaves, Rosemary, Oregano etc.

Medicinal and Aromatic plants, Essential oils etc.

Mushrooms

Button mushrooms in whole or sliced form in cans/bottles

Dairy products

Milk, Milk powder, Butter, Ghee, Cottage cheese etc.

Poultry & Meat products

Aqua products

Fish, Shrimp, Crab, Assorted, Value added products etc.

Organic products

Fruits, Vegetables, Food grains, Mushrooms, Medicinal & Aromatic plants etc.