IICD supported project: Rural Information System to support a Commodity Exchange

Countries: Uganda [UG]
Sectors: livelihood

Summary

Through this project, the Uganda Commodity Exchange enables farmers to send and receive market information for their produce to/from stakeholders in agricultural commodities’ marketing. This way, they can market their produce at good prices. By providing the link to better markets and market information, the project will increase the income of the farmers. The project also addresses the problem of lack of information for planning purposes, which is usually unavailable for the primary beneficiaries. Provision of the necessary infra-structure and an information analysis are part and parcel of the project.

Update

Updated: 2005-11-23

During 2005 the project was started up. In practical terms it means that attention was paid to the information analysis, the procurement of equipment and the sensitisation of the target group. In addition steps were undertaken to mainstream the project in UCE. Tuesday 22nd November the project will officially be launched by the Honourable Minister Daudi Migereko and the Honourable Permanent Secretary Sam Nahamya in Kampala.

Objectives

The main objective of the project is to enable rural farmers to increase their income. Farmers in two pilot venues (united in farmer groups in Bushenyi and Kayunga) are now enabled to use the following services of:
1. A so-called warehouse system which allows farmers to store their commodities, to transport their commodities to the market of their choice and to sell their commodities whenever they want.
2. A so-called crop marketing bureau through which farmers can send and receive timely, accurate and adequate market information on markets for their produce, thus enabling them to market their products at good prices. To reach this goal, this aspect of the project focuses to:
" Enable farmers to receive timely information on markets for their produce thus enabling them to market their produce at good prices;
" Enable UCE and other users in the short term to develop the capacity and infrastructure to become a one-stop centre for market information for agricultural commodities produced by Uganda farmers;
" Operate the marketing information system for the commodity exchange within the first quarter of the pilot year.

It is the combination of the services of a warehouse system and a crop marketing bureau which makes this project unique and which will prove to be a direct answer to the needs of the farmers. They know for what price they should be able to sell their commodities, however their problem is how to get their products for a good price to the right market. The first two pilot centres (in Bushenyi and Kayunga) are already delivering their services while another six centres will start up in 2006.

Planned outputs

This project will:

• Link to rural areas created;
• Adequate and timely Information sent & received;
• Increased incomes for beneficiary farmer groups through access to better markets;
• Improved marketing channels;
• Improved access to available commodities by buyers;
• Beneficiary rural communities use ICT and retrieve and send information;
• Technical information on Agricultural Practices availed to farmers; and,
• Improved, quality standards of agricultural produce.

Development Impacts

The primary target group is the organized farmer groups and therefore this project will have a direct impact on the economic situation of the lesser privileged people of the Ugandan society. The farmers play a major role in the decision making process. This project will definitely enhance business, as it will provide the farmers with the so-badly needed information to improve their business.

Management and organisation

The Uganda Commodity Exchange (UCE) is the project owner. At the start of the project there were two persons active at UCE. The project manager is a very committed woman who actually drives the whole project. She is supervised by her Director who oversees the project and ensures the embedding of the project into the core activities of the organisation. We do not have to underemphasize the importance of the people working at the centres in the rural areas. They form the direct link between the UCE in Kampala and the primary target group of the project.

Market and finance

The target market is the farmer in the rural areas and more specifically the organized farmer groups. It is expected that the project will generate revenues by budget re-allocations of UCE, financial support of the ACEs. The project might also generate revenues for selling the information or adding a small fee to the transactions made thru UCE.

Project Owner : Ministry Of Tourism, Trade and Industry (MTTI)Coordinator: Mrs. Deborah Mwesigye

Project Partners : IICD , DFID and DANIDA

Project Contact : IICD