The Parliamentary Committee on Agriculture, Animal Industry, and Fisheries has recommended a phased increase in funding for Uganda’s Agro-Industrialisation Programme, calling for the budget allocation to rise from 2.4 percent to 5 per cent of the national budget.
According to the committee, this increment would bring Uganda closer to meeting its commitment under the Comprehensive Africa Agriculture Development Programme (CAADP), which requires African Union member states to allocate at least 10 percent of their national budgets to agriculture by 2025.
This recommendation was part of a report presented by the committee chairperson, Hon. Linda Auma, during a House sitting chaired by Deputy Speaker Thomas Tayebwa on Thursday, 10 April 2025.
CAADP, a flagship initiative under African Union Agenda 2063, has since its inception under the 2003 Maputo and 2014 Malabo Declarations, helped boost agricultural productivity, trade, and investment across the continent.
Budget Cut Raises Concerns
The committee expressed concern over the recent decline in funding for the Agro-Industrialization Program, noting that the budget dropped from 2.9 percent in FY 2024/2025 to 2.4 percent in FY 2025/2026. This current allocation covers only 70 percent of the Shs2.448 trillion target set under the National Development Plan IV (NDP IV).
Despite agriculture employing over 70 percent of Uganda’s population, it contributes only 24.7 percent to GDP—mainly due to reliance on low-value, raw agricultural output.
Following the rationalisation of government agencies, the Ministry of Agriculture has taken over responsibilities from previously autonomous bodies, including the Uganda Coffee Development Authority (UCDA), Dairy Development Authority (DDA), Crop Development Organisation (CDO), and National Agricultural Advisory Services (NAADS)—yet without a matching budget increase.
The Ministry’s funding has instead dropped from Shs1.182 trillion to Shs806.94 billion, significantly limiting its capacity.
Key Gaps and Recommendations
The committee highlighted critical shortfalls such as Shs15 billion for coffee seedlings and Shs5 billion for hoes, which they deemed insufficient to meet the sector’s needs.
They urged increased investment in high-value crops, including avocado, macadamia, cashew nuts, apples, sunflower, and soya, along with essential inputs such as seeds and fertilisers.
To address low mechanisation, the committee proposed Shs105 billion to expand the national tractor scheme, aiming to acquire 300 tractors annually for the next three years.
They also recommended Shs75 billion to establish mechanisation centres and Shs57.43 billion to bridge gaps in irrigation infrastructure, including the construction of valley dams and water reservoirs.
MPs Back the Proposals
Several MPs supported the committee’s recommendations. Hon. Lee Denis Oguzu (FDC, Maracha County) criticised the mismatch between budget allocations and the NDP IV targets, citing agriculture’s central role in Uganda’s economy.
“Agriculture, especially coffee, which generated US$1.6 billion in FY 2023/2024, is underfunded. If we want more revenue, we must invest more in agriculture,” he stated.
Hon. Abdulhu Byakatonda (Ind., Workers Representative) echoed the concern, lamenting the government’s limited attention to a sector employing the majority of Ugandans.
Hon. Stella Atyang (NRM, Moroto District) pushed for more funding to procure tractors, pointing out that only 10 tractors were allocated to the entire Karamoja sub-region last year.
“Each district needs more tractors to ensure timely agricultural practices,” she said, proposing that each parish should receive at least one tractor.
Hon. Helen Nakimuli (NUP, Kalangala District) commended the inclusion of funding for the Fisheries Protection Unit but urged the government to also subsidise boat engine taxes, which she said currently cost up to Shs10 million, and to provide more support for fishing nets.
Ministry Pledges Support
In response, Hon. Fred Bwino Kyakulaga, Minister of State for Agriculture, welcomed most of the committee’s proposals and pledged to work towards closing the identified budget gaps in the upcoming financial year.
