INTRODUCTION AND CONTEXTUAL BACKGROUND

Finding XY designed the Agricultural Apprentice Incubator (Incubator) to catalyze investment and foster trade within the agricultural sector, particularly in the marginalized communities of Uganda.  The incubator has been piloted in the resilience zones of Nakivale and Palabek Refugee settlements and the Karamoja sub region. Three Female-led Small and Medium Enterprises in the agricultural value chain (Agri-SMEs) have received technical assistance tailored to strengthening value their value chains within the highlighted resilience zones. Through an apprenticeship approach, 30 Agricultural startups/agripreneurs including agents, and farmer associations have been linked to the Agri-SMEs for purposes of trade and capacity building.

Since the pilot launch in June 2023, 3.5 tons of agricultural products have been traded, and Business-to-Business trainings conducted by the Agri-SMEs aimed at addressing the Agripreneurs’ skills gap.

In this article, we share insights and learnings from a pivotal Monitoring and Evaluation (M&E) visit conducted on the 30. This exercise provided us with firsthand observations and in-depth assessment of project impact, opportunities, and challenges within the unique context of resilience zones.  The Pilot is made possible by the generous support of the American people through USAID under the Feed the Future Uganda Inclusive Agricultural Markets Activity and implemented by Finding XY.

METHODOLOGY

The M&E exercise centered on the overarching theme of evaluating business growth and the impact of the Incubator. Stipulated Key Performance Indicators (KPIs) were evaluated including financial performance, operational efficiency, customer relations, inventory management, compliance, risk management, as well as investment proposals, and financial health. The KPIs are essential criteria for the selection process of agripreneurs eligible to receive capital for the execution of their business concepts.

KEY FINDINGS

  1. Diversification: The agripreneurs diversified revenue sources beyond the initial chains of soybeans and apiary to retail shops and animal husbandry. Strategies to stay afloat in the agricultural off-seasons is crucial for sustainability.
  2. Limited Financial Knowledge: Limited financial literacy remain a significant barrier to financial inclusion among the agripreneurs. The inability to maintain financial records, manage their finances, and utilize the available financial support, such as banks services underscores this challenge. Association Leaders who have received direct trainings on financial management have been urged to pass on the knowledge to their members for holistic growth.
  3. Limited access to Financial Services: Only 10 of 30 agripreneurs had active bank accounts with 7 having received financing from commercial banks. Majority are members of Village Savings and Loans Association (VSLAs) and SACCOs; The VSLAs, SACCOs, and the agripreneurs would benefit from further literacy on how to effectively leverage these opportunities for financial resilience.
  4. Trade, and Social Impact synergies: The skills obtained from the Business-to-Business trainings including post-harvest handling and quality control significantly contributed to increased production capacity leveraging the readily available market provided by the Agri-SMEs. In addition to reinvesting the profits in their businesses, female agripreneurs utilized a portion to afford school fees for their children and other basic family needs
  5. Climate change: Climate change evidences by weather inconsistences posed challenges bee abscondment for apiary, and unpredictable planting and harvesting seasons for soybean which directly affects yields. Other challenges included high transportation costs, inadequate equipment, and limited working capital
  6. Quality Control: Notwithstanding the trainings delivered through the Incubator, there’s an evident knowledge gap in product quality adherence. The Agri-SMEs are deliberate on providing technical assistance and  leveraging geographical advantages are crucial for improving product quality and market presence
  7. Cooperation among Agripreneurs: Formation of associations facilitated cost reduction and resource sharing among agripreneurs. 10 of the 30 agripreneurs are associations which have exhibited potential to deliver on larger market demands and exemplified communal support for entrepreneurship and sustainability

CONCLUSION

There’s an evident need for collaborative efforts to promote financial and gender inclusion in resilience zones. In the face of evolving environmental and socio-economic dynamics, it is imperative to recognize the need for a comprehensive and localized approach to building resilience in within these communities.