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STRYDE Uganda Employment Sector Analysis February, 2012
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Page 1: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

STRYDE Uganda Employment Sector Analysis

February, 2012

Page 2: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Executive Summary

1

• Uganda has the largest youth population in the world and the highest unemployment rate among youth–

With a annual population growth rate of 3% and a low percentage of elderly, Uganda continues to struggle with

high youth unemployment rates

o Agriculture continues to play the most important employment opportunity for Ugandan households

– Over 83% of the households in the STRYDE districts state that agriculture is it’s main income generating

activity

o Maize farming is the more important staple/cash crop opportunity for youth in the STRYDE

districts– With it’s many uses and a growing local and regional demand, maize is increasingly important

and gives youth opportunity to get involved not just in farming but many other areas along the value chain

o Livestock production, specifically pigs, can provide a great opportunity for youth/youth groups who

lack access to farming land – The Ugandan population consumes an average of 3.4 kg/person/year (FAO

2010), and pig consumption in Uganda is said to be experiencing the most rapid growth of any African

country (CGAIR Research 2011) thus making pig farming a potentially highly lucrative avenue for youth

o Although there are many opportunities along the value chain, farming bears the greatest

opportunity – 74% of the opportunities in the STRYDE districts are in farming, making it extremely

important that the STRYDE program change negative behavioral mindset in youth toward farming

o Stakeholders must assist youth along the value chain – As youth need to gain skills to offer veterinary

services or sell inputs, stakeholders such as the district veterinary services and UNADA must be willing to

assist youth

Page 3: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

2

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 4: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Uganda has the largest percentage of youth than any country in the world

3 Source: CIA World Factbook

Large youth population

implications

Note: Youth population defined as under the age of 15

50.0% 49.7% 47.5% 46.7% 46.4% 46.2% 46.1% 46.0% 45.3% 45.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Uganda Niger Mali DR Congo

Chad Ethiopia Burundi Burkina Faso

Malawi Mayotte

% of Youth

• Influx of the youth entering less

rapidly growing work force

creates growing unemployment

rates

• Ratio of Youth and Elderly to

working class is close to 1:1

could potentially decrease

savings rates because smaller

working class would be

supporting larger non-working

class

Page 5: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Given the amount of youth in Uganda, jobs are scarce driving high

unemployment rates

4

83% 80%

78% 76%

72%

62% 58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Uganda Kenya Malawi Mozambique Nigeria Mauritania Sao Tome And Principe

% Youth Unemployed

Source: 2008 World Bank Report – Youth Unemployment, Uganda:

Addressing the Education, Inequality

Note: Unemployment rate for youth between ages 15 and 24

In Uganda, there are approximately

400,000 college graduates per year

seeking employment from 80,000

meaningful jobs, thus increasing

unemployment dramatically

Page 6: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

5

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 7: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agriculture is the most important sector in Uganda with an increasing

amount of households entering the industry the last 10 years

6

0

200

400

600

800

1000

1200

1400

1995/1996 1999/2000 2002/2003 2005/2006 2008/2009

Central

Eastern

Northern

Western

Number of agriculture households in Uganda (000s)

Source: UNHS 1995/1996, UNHS 1999/2005, UNHS 2005/2006,

Uganda Census of Agriculture 2008/2009, World Bank Uganda -

2003

Uganda employment statistics breakdown (% of employed)

Agriculture 69%

Services 23%

Industry 8%

0%

0%

CAGR (95-08)

0.4% 1.7% 4.0% 1.0%

Page 8: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

In the districts where STRYDE is working, crop production is the main

income generating activity

7

Nwoya and Gulu District Mityana, Kayunga, and Mukono District

Crop Production

Livestock Production

Fishery

Trader

Artisan

Ag paid job

Non-ag paid

Unemployed

HH work

Crop Production

Livestock Production

Fishery

Trader

Artisan

Ag paid job

Non-ag paid

Unemployed

HH work

Percentage distribution of Ag Households Percentage distribution of Ag Households

Source: UNHS 1995/1996, UNHS 1999/2005, UNHS 2005/2006,

Uganda Census of Agriculture 2008/2009, World Bank Uganda -

2003

Page 9: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

The primary focus for youth linkages is staple crops, horticulture and

livestock production given the amount of households involved in agriculture

8

Categories

• Staple Crops

• Horticulture (fruits)

• Livestock production

Description

• Staple crops include sweet potatoes, dry beans, cassava, simsim,

maize, sorghum, groundnuts, finger millet, and rice. Maize and dry

beans are considered cash and staple crops and bear the most

opportunities for youth given the low barriers to entry, high

marketability, and quick turnaround of crop.

• Horticulture (fruits) includes matoke banana, sweet banana,

pineapple, mango, citrus, and papaya. Although pineapple bears

significant opportunity in the Kayunga district, startup costs and

significant time for harvested crop prevent most youth from farming

the fruit.

• Livestock production include poultry, goat, ducks, cattle, pig, and

sheep. Pig and poultry farming have the most opportunity for youth

although maize bran bears significant costs and reduces profit

margins.

Page 10: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Key staple crop sectors in STRYDE districts

9

Ngoya and Gulu District Mityana, Kayunga, and Mukono District

Production (In 1000 MT)

Source: 2008/2009 Uganda Census of Agriculture

Production (In 1000 MT)

0

10

20

30

40

50

60

70

80

90

Sweet Potatos

Dry beans

Cassava

Simsim

Maize

Sorghum

Groundnuts

Finger Millet

Rice

0

10

20

30

40

50

60

70

80

90

Sweet Potatos

Dry beans

Cassava

Simsim

Maize

Sorghum

Groundnuts

Finger Millet

Rice

Page 11: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Key fruit sectors in STRYDE districts

10

Ngoya and Gulu District Mityana, Kayunga, and Mukono District

Production (In 1000 MT) Production (In 1000 MT)

Note: Matoke placed in fruits, but it is also a staple crop

0

10

20

30

40

50

60

70

80

90

Pineapple

Citrus

Papaya

Mango

Passion fruit

Matoke

Sweet banana

0

10

20

30

40

50

60

70

80

90

Pineapple

Citrus

Papaya

Mango

Passion fruit

Matoke

Sweet banana

Source: 2008/2009 Uganda Census of Agriculture

Page 12: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Key livestock production sectors in STRYDE districts

11

Ngoya and Gulu District Mityana, Kayunga, and Mukono District

# of Livestock (In 1000’s) # of Livestock (In 1000’s)

0

100

200

300

400

500

600

700

Poultry

Goat

Ducks

Cattle

Pig

Sheep

Source: 2002 Uganda Census of Agriculture (Stats not available in

2008/2009 Census of Agriculture

0

100

200

300

400

500

600

700

Poultry

Goat

Ducks

Cattle

Pig

Sheep

Page 13: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

12

Criteria Indicator Additional information

Youth Farming Opportunities

1= Yield timing >= 1 year, high initial capital needed, large number of farming and harvesting constraints 10 = Two-three season crop, highly attractive to youth, few harvesting constraints

Metrics for attractiveness include turnaround time of profit and low amounts of initial capital needed. Two-three crop season would rank higher because of

more opportunities for quick capital turnaround

Employability Opportunities

1= Very little opportunity in commodity for youth employability in areas such as on-farm labor, warehouse labor and milling labor 10 = Great opportunity in commodity for youth employability in labor activities

Employability is correlated to worth of the commodity and commodity dynamics giving more opportunities for high worth high demand crops

Entrepreneurship Opportunities

1 = Entrepreneurship opportunities <=1 such as transporting, roasting, input suppliers, traders/brokers, etc. 10 = Entrepreneurship opportunities >=5 such as transporting, input suppliers, roasting, traders/brokers, etc.

Entrepreneurship opportunities correlated to local and regional demand for crop. The more valuable the crop, the more opportunities for transport and

input supply

Ease of creating new jobs for youth

1 = Low demand for laborers, lack of milling support, lack of warehouse option, lack of marketability of crop 10 = High demand for day laborers, milling support, warehouse demand, high marketability of crop

Difficulty of creating new jobs of youth is related to market dynamics of crop. For example, it would be difficult for youth to obtain jobs if there’s a high

demand for labor, but the crop is of very little value

Potential profitability 1 = Profitability averages between 0 and 100,000 UGx/(acre or 10 pigs/20 chickens) 10 = Profitability averages over 1,000,000 UGx/(acre or 10 pigs/20 chickens)

The higher the profitability of the crop, the better chance that the youth would want to get involved in farming that opportunity. Each crop is based on

profitability per year.

Overall availability of jobs for youth

1= 0-600 jobs including farming, on farm labor, input supplier, value addition services, etc. 6 = >3600+ jobs including farming, on farm labor, input supplier, value addition services, etc.

Job estimates: Input supply – 150 – 200 jobs depends on highest input demand from interview with UNADA, On farm labor – 200-600 jobs depends

on marketability and price, Farming opportunities depends on land availability, access to finance, perception of farming through interviews and

youth group forums.

Marketability in local market

1= Lack of local demand, non staple food, low value crop 6 = High and growing demand, staple food, high value crop

The local demand is important for youth to distribute on the local level for a quick profit

Marketability in regional market

1 = Lack of regional demand, very little current export of product, low value worth of commodity 6 = Large and growing regional demand, high export in recent years, high value worth of commodity

The regional market demand is important as it opens up regional export of that specific crop, thus increasing opportunities for youth to farm that crop

Prevalence 1= 1,000 – 10,000 MT produced annually in STRYDE district, 6 = >60,000 MT produced annually in STRYDE district for crop and 1= 0 – 500 MT , 6= >3,000 MT for livestock production

The prevalence of the crop is correlated to the crop potential in Northern Uganda. Most youth wouldn’t be as interested in producing a crop that hasn’t been proven before. Poultry assumption of 2 kg each and pigs of 35 kg each.

Each sector must be measured with specific criteria to better understand

the potential opportunity for youth in STRYDE districts

Source: Interviews, TNS analysis

Fir

st

pri

ori

ty (

Ou

t o

f 1

0)

Se

co

nd

pri

ori

ty (

Ou

t o

f 6

)

Page 14: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

13

Criteria Maize Dry Beans Matoke Pineapple Poultry Pig

Youth Farming Opportunities (10) 9 8 5 4 7 10

Employability Opportunities (10) 10 6 4 4 2 6

Entrepreneurship Opportunities (10) 10 8 6 6 10 8

Ease of creating new jobs for youth (10)

8 6 7 5 8 6

Potential profitability (10) 4 4 6 10 6 9

Availability of jobs for youth (6) 6 3 2 2 2 3

Marketability in local market (6) 6 6 6 5 5 6

Marketability in regional market (6) 5 4 1 4 5 3

Prevalence (6) 6 4 6 4 4 3

Total (Out of 74) 64 49 41 44 50 54

Uganda’s Key Youth Employment Sectors

Source: Interviews, TNS analysis

Staple Crops Fruit Livestock

Page 15: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Dry bean farming has many advantages, but dry beans lacks value

addition opportunities for youth to get involved

14

Criteria Description

Youth Farming Opportunities There are many opportunities for youth farming in dry beans as the crop is grown in all STRYDE districts, does not require large amount of start up capital , is a 2-3 season/year crop and is not extremely labor intensive

Employability Opportunities Opportunities in the dry bean value chain include warehouse labor support, and limited on farm labor

Entrepreneurship Opportunities Entrepreneurship opportunities include trader/brokers, aggregator/transporter, pesticide sprayer and input supplier

Ease of creating new jobs for youth

There are limited opportunities for on farm labor and warehouse labor given the small sizes of the average farmer’s dry bean farm

Potential profitability 87,000 – 324,000 UGx/acre/season, 174,000 – 648,000 UGx/acre/year

Availability of jobs for youth There are not an ample supply of existing jobs for youth because there are not an abundant amount of value addition opportunities along the dry beans value chain

Marketability in local market Dry beans are hugely marketable and are a main staple in Uganda. The market demand is not currently being met because farmers do not farm dry beans commercially

Marketability in regional market There is a large regional demand for dry beans stemming from favorable varieties grown in Uganda and that dry beans are staples in many bordering countries

Prevalence There were 40,400 MT of dry beans grown in the STRYDE districts in the 2008/2009 seasons

Source: 2008/2009 Uganda Census of Agriculture, Interviews, TNS

analysis

Page 16: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Matoke is one of the main staples in Uganda; however, it cannot be grown

in the Northern Uganda STRYDE districts and lacks regional marketability

15

Criteria Description

Youth Farming Opportunities There are limited opportunities for youth farming in matoke as the crop is grown in only the central districts, requires a medium amount start up capital , and is quite labor intensive for one worker

Employability Opportunities Employability opportunities in the matoke value chain include transporter support and on farm labor

Entrepreneurship Opportunities Entrepreneurship opportunities in matoke include trader/broker, aggregator/transporter, and input supplier

Ease of creating new jobs for youth

There are a number of opportunities along the matoke value chain in areas like traders/brokers or aggregator/transporters, but a limited number of opportunities in value addition

Potential profitability 300,000 – 1,000,000 UGx/acre/year

Availability of jobs for youth There is a large opportunity for youth to farm matoke in the central districts where land isn’t a constraint, but there is a lack of opportunity to grow matoke in the northern districts because of weather constraints. There are also limited opportunities for youth to get involved in other areas of the matoke value chain

Marketability in local market Matoke is the biggest staple of the Ugandan diet making the crop imperative for households across Uganda

Marketability in regional market As matoke is only a staple crop in Uganda, there is extremely limited opportunity for export to regional markets

Prevalence There were 68,710 MT of matoke grown in the STRYDE districts in the 2008/2009 seasons

Source: 2008/2009 Uganda Census of Agriculture, Interviews, TNS

analysis

Page 17: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

The large amount of initial start up capital and lack of value addition

opportunities makes pineapple farming difficult for youth

16

Criteria Description

Youth Farming Opportunities There are limited opportunities for youth farming in pineapple as the crop is grown in only the central districts, requires a large amount of initial capital and 18 months for the first harvest

Employability Opportunities Employability opportunities in the pineapple value chain include transporter support and on farm labor

Entrepreneurship Opportunities Entrepreneurship opportunities in pineapple include trader/broker, aggregator/transporter, and input supplier

Ease of creating new jobs for youth

As pineapple has the potential to be highly profitable for farmers, there are opportunities for youth to get involved in on farm labor although it would be difficult to create jobs outside of on farm labor because of finance constraints and lack of opportunities

Potential profitability 1,160,000 – 3,000,000 UGx/acre/year

Availability of jobs for youth There are limited opportunities for youth in pineapple farming as the crop requires large amounts of start up capital, takes 18-months for first harvest, and has few opportunities for value additional along the pineapple value chain

Marketability in local market Pineapple is hugely popular in the domestic market and can be seen sold as whole or sliced fruit along the roadside, to processors as pineapple juice, to informal market traders, and to confectionary stores and restaurants

Marketability in regional market The sweetness and overall taste of the smooth cayenne, Uganda’s main pineapple variety, attracts regional market traders and processors

Prevalence There were 37,260 MT of pineapple grown in the STRYDE districts in the 2008/2009 seasons

Source: 2008/2009 Uganda Census of Agriculture, Interviews, TNS

analysis

Page 18: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Lack of existing jobs and difficult of creating additional jobs plague poultry

farming for youth

17

Criteria Description

Youth Farming Opportunities There are opportunities for youth farming in poultry if the youth has access to startup capital as poultry requires weekly purchases of maize bran feed, which lacks substitutes

Employability Opportunities Employability opportunities in the poultry value chain include on farm labor

Entrepreneurship Opportunities Entrepreneurship opportunities in poultry include egg salesman, egg distributor, egg trader/broker, poultry trader/broker, poultry roaster, and poultry aggregator/transporter

Ease of creating new jobs for youth

There will be ample opportunities to create new jobs in both employment and entrepreneurship once more chicken and eggs are produced

Potential profitability 500,000 – 750,000/ per year (assuming 20 chickens, twice per year)

Availability of jobs for youth Due to the constraint of initial capital and ongoing capital, there are limited number of opportunities for youth to get involved in poultry farming

Marketability in local market As poultry is considered a luxury food item in Uganda, there is a large and growing demand for poultry as Ugandan GDP grows

Marketability in regional market Similarly to Uganda, there is a large and growing demand for poultry in the bordering countries as GDP of East Africans continues to rise

Prevalence There were 792,000 chickens grown in the STRYDE districts in the 2002 season

Source: 2002 Uganda Census of Agriculture (Stats not available in

2008/2009 Census of Agriculture, Interviews, TNS analysis

Page 19: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

18

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 20: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Opportunities for youth in maize are broken out by farming, employability,

and entrepreneurship

19

Production Storage Milling Commerc-

ialization

Input Supply/

Services Traders/ Brokers

Youth Job opportunities

Source: Interviews, TNS analysis

27 36

2700

540

86 17

100 43 188

54

0

500

1000

1500

2000

2500

3000

Legend: Farmer

Employed

Entrepreneur

Page 21: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

INPUT SUPPLY: Input Supplier opportunities

20

Number of Jobs • 27 input supplier opportunities

Explanation/Assu

mptions

• Through conversations with UNADA district representatives, it was apparent that quality maize inputs and fertilizer were

the highest demanded inputs. This presents an opportunity for youth to travel to areas in villages supply inputs during

planting seasons. The assumptions are that 30% of new farmers will seek improved inputs and that there will be 1 input

supplier for every 30 farmers

Challenges • Start-up capital: Start-up capital needed between 100,000 and 200,000 UGX to purchase enough materials to make a

profit

• Road condition and transport to reach remote areas: Distance and poor road conditions to reach some farms may

create challenges for youth to sell their inputs

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Road condition and transport to reach remote areas: Draw out routes for youth to reach remote areas in most

efficient way targeting farmers that would most likely purchase inputs.

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, and

understanding of commission needed to generate profit

• Entrepreneurship training – Understanding of sourcing avenues and which products are most marketable/profitable,

driven to succeed despite having no guided support

• “Life skills” training – Self-confidence to be able to sell inputs to farmers and ability to train farmers necessity of new

and improved inputs

• Other skills – Vast understanding of farming a variety of crops, and ability to detect poor quality seeds and inputs

Partnerships • UNADA, Victoria Seeds, NASECO Seeds, Various wholesale input suppliers in counties, , BRAC, FINCA Uganda

Additional

information

• Input supply opportunities not exclusive to maize alone. Youth could supply other quality seeds based on demand for

quality inputs

Source: Interviews, TNS analysis

Page 22: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

INPUT SUPPLY: Pesticide sprayer opportunities

21

Number of Jobs • 36 pesticide spraying opportunities

Explanation/Assu

mptions

• As youth farmers are trained to become commercialized farmers, there will be a greater demand for pesticide spraying

services, thus creating a new market opportunity for pesticide spraying. The assumptions are that 40% of new farmers will

seek spraying to avoid crop disease and that there will be 1 pesticide sprayer for every 30 farmers.

Challenges • Start-up capital: Pesticide spray guns and spraying will require initial financing

• Demand for pesticide services: Demand for services may start low in northern region, so youth will have to be well

trained in helping farmers understand benefits of pesticide spraying

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Demand for pesticide services: TechnoServe can teach youth to target areas that have large infestation of pests and

disease.

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, and

understanding of commission needed to generate profit

• Entrepreneurship training – Understanding of sourcing avenues and which products are most marketable/profitable,

driven to succeed despite having no guided support

• “Life skills” training – Self-confidence to be able to sell inputs to farmers and ability to train farmers necessity of new

and improved inputs

• Other skills – Expanding knowledge of which pesticides and herbicides have been abolished and shouldn’t be used,

Partnerships • UNADA – Gulu office, UNADA – Kampala Office, Mityana Spraying Foundation, Mukono Pesticide Supplies, BRAC,

FINCA Uganda

Additional

information

• The pesticide spraying market is still underdeveloped as the majority farmers are subsistence farmers who don’t want to

or doesn’t have the capital to put into their crop

Source: Interviews, TNS analysis

Page 23: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

PRODUCTION: Maize farming opportunities

22

Number of Jobs • 2700 maize farming opportunities (1100 in Gulu, 1000 in Nwoya, 225 in Mityana and Kayunga, 150 in Mukono)

Explanation/Assu

mptions

• There is still an unmet demand for maize in Northern and Central Uganda. Increased milling capacity and the commissioning of new

WFP warehouses give opportunity to add value and store maize, creating a new avenue for maize. Through interviews, it became

apparent that there was ample land available for farming in the North and that the youth would get involved in farming at a much faster

in rate than the central region. Agriculture households have grown 4% to 907,000 in the Northern region and .4% to 805,000 in the

Central region in the past 15 years as maize overall production continues to grow at 14% per annum in the past 10 years. Assuming

growth rates remain stable, and that 57% of those agriculture households (2005 Uganda National Household Survey) go into maize

farming, there will be 78,208 new maize farmers from 2012 to 2015. Program assumes that 14-15% new maize farmers will be in the

STRYDE districts and that youth will comprise of 25% of those new farmers. Distribution of youth by region is based on land

availability to youth and growth rates.

Challenges • Finance: Community holding of land titles until youth turn 40 years old prevent youth from using collateral to obtain loan financing.

Most youth wouldn’t use excess capital to purchase inputs.

• Production: Youth are unaware of the benefits of farming, lack organization, and potential lack a solid work ethic

• Commercialization: Farmers lack access to market and rely heavily on price setting traders and brokers. Youth lack awareness of

market and potential profitability of maize farming

Opportunities • Finance: Set up “Vouchers for Work Program” to give youth access to internships and inputs or create shared liability youth groups for

youth to obtain financing.

• Production: Teach youth farming as a business and address psychosocial analysis through mentorship and curriculum

• Commercialization: Train youth to be aware of market dynamics, cost/benefit of farming, and link youth to markets

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take concise records of costs of inputs, labor, harvest costs to understand cost per acre and

selling price needed to generate ample profit

• “Farming as a business” training – Understand planting period, when to spray pesticide, when and how often to weed, what fertilizer

to use, when to harvest, and good agronomic practice in harvesting to fetch higher prices

• Other skills – Ability to organize into groups to take advantage of borrowing schemes, group trainings, bulk input purchases, bulk

sales and marketing, and utilization of warehouse program

Partnerships • UNADA, NARO, WFP Gulu, Jinja Agroways, Victoria Seeds, NASECO Seeds, BRAC, FINCA Uganda

Source: Interviews, TNS analysis, 2005 Uganda National Household Survey

Page 24: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

PRODUCTION: On Farm Laborer opportunities

23

Number of Jobs • 540 on farm labor opportunities

Explanation/Assu

mptions

• As the number of households going into agriculture has increased since the LRA conflict, there is an expectation that

there will be more on-farm labor jobs for youth to find employment and instant capital. Key assumption that there will be 1

new on farm laborer for every 5 new farmers.

Challenges • Youth perspective of on-farm labor: On-farm labor pays little compared to other jobs, so youth generally have a

negative perception of these jobs

• On-farm jobs not sustainable growth for long term income generation: On farm labor employ youth during portions

of seasons and make the youth susceptible for unemployment during non-harvest seasons

Opportunities • Youth perspective of on-farm labor: Help youth understand that utilizing on-farm skills are extremely beneficial for

farming as a business. Encourage youth to save and use small amount of capital for input supplies

• On-farm jobs not sustainable growth for long term income generation: Help youth understand different crop

harvesting dynamics for youth to realize which farms need assistance at which times and be proactive to obtain on-farm

labor jobs

Youth

trainings/skills

needed to

address

opportunities

• “Life skills” training – Ability to overcome idleness, social and emotional constraints and dependence on family

members and motivation to find work

• Other skills – Understanding of maize harvesting seasons , and ability to use a hoe and other farming tools to weed and

harvest maize

Partnerships • Gulu, Mityana, Mukono, and Kayunga Farmers Association

Additional

information

• Generally a low paying job for youth with very limited capacity. On-farm labor jobs will generally be more plentiful for

higher valued crops

Source: Interviews, TNS analysis

Page 25: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

TRADERS/BROKERS: Trader/broker opportunities

24

Number of Jobs • 86 maize trader/broker opportunities

Explanation/Assu

mptions

• With increase market opportunity and more youth beginning to farm, traders/brokers have the opportunity to purchase

from youth groups and farm and transport to medium scale traders. Key assumptions that average youth farm size will be

1.5 acres, average production will be 1.5MT/ha or 610 kg/acre and that average trader will take 10MT of maize per

season.

Challenges • Start-up capital: 1.0-2.0M Ugx shilling for boda boda, 100k-300k for bicycle, renting vehicle varies based on size and

distance

• Transportation issues and variability of fuel prices: Road constraints and increasing trend of fuel prices cuts into rural

traders profit margins

• Commodity price fluctuation: Variance of prices can create losing opportunities if prices goes below cost threshold

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Transportation issues and variability of fuel prices: Draw out road maps and help youth realize how to calculate cost

per kilometer based on transportation means

• Commodity price fluctuation: Teach youth how to use mobile devices to find maize prices and help the understand year

over year price variance by season

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, understanding of

commission needed to generate profit and constant and up-to-date knowledge market dynamics and potential

fluctuations of commodity prices in local markets

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, create and leverage business

relationships with farmers, traders, and transporters, save money for future inventory purchases,

• Other skills – Needs transportation means to take commodities from buying to selling point, and ability to drive on

difficult roads and carry large bags of commodity on transport

Partnerships • WFP Gulu, Jinja Agroways, Gulu Commodity Traders Association

Source: Interviews, TNS analysis, FAO

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TRADERS/BROKERS: Maize Aggregator/Transporter opportunities

25

Number of Jobs • 17 maize transport opportunities

Explanation/Assu

mptions

• There is a large regional and local transport opportunity that is currently underdeveloped. The Southern Sudan market

traditionally demands much higher prices and there’s a major opportunity for Gulu to meet that growing market. Key

assumptions of farmers plus average size of transport = 10MT, 10 trips per season and 2 transporters per trip

Challenges • Start-up capital: Start-up capital needed between 1.0-2.0M Ugx depending on size of truck and price paid for maize

• Maize price fluctuation: Variance of prices can create losing opportunities if prices goes below cost threshold

• Road condition, traffic, and politics in Southern Sudan market: Large market opportunity in Southern Sudan met with

influx of agricultural traders and transporters

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Maize price fluctuation: Teach farmers how to track commodity prices through SMS updates. Southern Sudan maize

prices are around 1200 UGX/kg higher than Gulu maize prices making it a very attractive market opportunity

• Road condition, traffic, and politics in Southern Sudan market: Organize youth groups to hedge risk of transportby

shared liability agreement among youth to pool resources

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to derive cost/benefit analysis and a firm understanding of needed commission for

a profitable endeavour, and understanding market dynamics and fluctuations of commodity prices in both local and

regional markets

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, create and leverage business

relationships with traders, and medium/large scale traders, save money for future inventory purchases, and ability to

determine best combination of commodity for maximum profit

• Other skills – Ability to drive commercial vehicles in difficult roads, especially the roads from Gulu to Juba in Northern

region, and traffic situations, and access to warehouse or other avenue to aggregate commodities

Partnerships • WFP Gulu, Jinja Agroways, traders/brokers (suppliers), Medium/large scale traders (customers) , BRAC, FINCA Uganda

Additional

information

• Transporters would be able to realize large amounts of profit, but large amounts of initial capital needed could prevent

youth from taking advantage of this endeavour

Source: Interviews, TNS analysis

Page 27: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

STORAGE: Warehouse Laborer opportunities

26

Number of Jobs • 100 warehouse laborer opportunities

Explanation/Assu

mptions

• There is one WFP commissioned warehouse in Northern Uganda and a planned WFP warehouse in the Kamuli district of

Central Uganda. With the increase in maize warehouse capacity, there will be additional opportunities for youth to find

employment as warehouse operators. Key assumptions that there will be 50 warehouse laborer opportunities per

warehouse once capacity utilization has been increased at WFP Gulu and Kamuli warehouse in operation.

Challenges • Competition for new jobs: There will most likely be competition for new warehouse worker jobs by youth with prior work

experience in labor

• Timeframe for jobs: New jobs could be available before youth are well equipped with skills needed to obtain them

Opportunities • Competition for new jobs: Understand job requirements and refine youth skills to meet those job requirements

• Timeframe for jobs: Continue discussions with warehouse operators to gain better understanding of timing challenges of

job requests and give them insight to how the STRYDE program is designed

• If “Vouchers” program is implemented, offer part time internships with opportunity to transition into paid position after

vouchers program

Youth

trainings/skills

needed to

address

opportunities

• “Life skills” training – Ability to overcome idleness, social and emotional constraints and dependence on family

members to take jobs in this sector

• Others skills – Honest work ethic, hard working, ability to keep time, lift heavy bags of maize and work night shifts

Employers • WFP Gulu (Northern) , Jinja Agroways (Central region), WFP Kamuli (Central region) - planned

Additional

information

• Generally a low paying job for youth with very limited capacity. Jobs can be inconsistent if capacity utilization is low and

will most likely be seasonal with maize and potentially dry bean seasons

Source: Interviews, TNS analysis

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STORAGE: Commodity holder opportunities

27

Number of Jobs • 43 commodity holder opportunities

Explanation/Assu

mptions

• The opening of WFP Gulu and upcoming opening of Kamuli warehouse creates opportunities for organized youth groups

to purchase maize from traders/brokers with soul purpose of taking advantage of price fluctuations by utilizing the

Warehouse Receipt System. Key assumptions that 50% of traders/brokers can be purchased by commodity holders to

be stored in the warehouse to take advantage of price variance.

Challenges • Start-up capital: Start-up capital needed between 1.0 and 1.5M UGX per youth group to reach economies to scale

• Organized Youth Groups: Youth are currently unorganized preventing youth from purchasing excess of 3MT needed to

take advantage of Warehouse Receipt System

• Maize price fluctuation: Variance of prices can create losing opportunities if prices goes below cost threshold

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Organized Youth Groups: TechnoServe can train youth on importance of organizing to groups and good governance

• Maize price fluctuation: Teach youth how to use mobile devices to find maize prices and help the understand year over

year price variance by season

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss

• Entrepreneurship training – Develop business plan and strategy, and ability to create business linkages with maize

traders/brokers to supply best quality seed

• Other skills – Understanding past annual market dynamics and fluctuations in Uganda, patience to wait through maize

price fluctuations, diligence to stay up-to-date on maize prices throughout the region

Partnerships • WFP Gulu, Jinja Agroways, WFP Kamuli – planned, Centenary Bank, Equity Bank, Housing Finance Bank, BRAC,

FINCA Uganda

Additional

information

• Commodity holders is a new market opportunity. Single youth with no children have less responsibilities than married

youth and can use liquid income to purchase maize as a youth group, hold onto the commodity after getting receipt, and

sell maize outside of harvest

Source: Interviews, TNS analysis

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MILLING: Mill Laborer opportunities

28

Number of Jobs • 188 Mill Laborer opportunities

Explanation/Assu

mptions

• There are two new maize millers in Northern Uganda and three new maize millers in Central Uganda. With the increase

in maize milling production, both general managers in the north stated that they would be looking to hire between 25-50

youth in 2012. Key assumptions that millers in Northern Uganda and Central Uganda hire on average between 25-50

workers per miller.

Challenges • Competition for new jobs: There will most likely be competition for new milling worker jobs by youth with prior work

experience in labor

• Timeframe for jobs: New jobs could be available before youth are well equipped with skills needed to obtain them

Opportunities • Competition for new jobs: Understand job requirements and refine youth skills to meet those job requirements

• Timeframe for jobs: Continue discussions with miller operators to gain better understanding of timing challenges of job

requests and give them insight to how the STRYDE program is designed

• If “Vouchers” program is implemented, offer part time internships with opportunity to transition into paid position after

vouchers program

Youth

trainings/skills

needed to

address

opportunities

• “Life skills” training – Ability to overcome idleness, social and emotional constraints and dependence on family

members to take jobs in this sector

• Others skills – Honest work ethic, hard working, ability to keep time, lift heavy bags of maize and work night shifts

Employers • Peyero Millers (Northern), Louis Enterprises (Northern), Gulu Grain Millers, Mukono Millers, Mityana Millers, Kayunga

millers

Additional

Information

• Generally a low paying job for youth with very limited capacity. Jobs can be inconsistent if capacity utilization is low and

will most likely be seasonal with maize and potentially dry bean seasons

Source: Interviews, TNS analysis

Page 30: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

COMMERCIALIZATION: Roaster opportunities

29

Number of Jobs • 54 roaster opportunities

Explanation/Assu

mptions

• In many areas in and around Gulu, maize roasting has taken off creating a new opportunity for youth to make quick

income from a business that needs very little start-up capital. Key assumption that roasting opportunities account for 2%

of new farming opportunities.

Challenges • Seasonal business: Maize is a two season crop, making it difficult for youth to employed year around through maize

roasting

• Ability to purchase maize at competitive rate: Depending on timing in season, maize market prices may make maize

roasting unprofitable

• Perception of roasting: There is a negative perception that maize roasting is for people who failed in other fields making

it unfavourable for youth

Opportunities • Seasonal business: Teach youth to use maize off-season to sell groundnuts or other commodities by the roadside

• Ability to purchase maize at competitive rate: Create linkages of youth to traders/brokers, so that youth can obtain

most favourable market rate

• Perception of roasting: Teach youth the intricacies of entrepreneurship and the benefits of being an entrepreneur

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, and

understanding of commission needed to generate profit

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, self-motivated, understanding

of highest unmet demand for a roaster, business linkages to trader/brokers for supply of maize, up-to-date knowledge of

fluctuating maize and coal prices, ability to manage own capital and inventory levels

• Other skills – Customer service skills to encourage repeat business

Partnerships • Traders/brokers, Youth Entrepreneurship Centre, Entrepreneurs in Action

Source: Interviews, TNS analysis

Page 31: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

In summary, a total of approximately of 3900 youth related jobs can be

created through increased maize farming

30

Ease of job creation

Attractiveness of opportunity

Source: Interviews, TNS analysis

36

2700

540

86

17

43

188

54

0

20

40

60

80

100

120

0 10 20 30 40 50 60 70 80 90 100

Input Supplier

Pesticide Sprayer

Farmer

On Farm Labor

Trader/Broker

Aggregation/Transport

Warehouse Laborer

Commodity Holder

Mill Laborer

Roaster

Page 32: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

31

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 33: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

There are many opportunities for youth to take advantage of income

generating activities in the piggery sector

32

Youth Job opportunities

Production Processor Commercializa

tion Input Supply/ Services Traders/ Brokers

Legend: Farmer

Employed

Entrepreneur

53 11

1050

61 13

50 11

0

200

400

600

800

1000

1200

Source: Interviews, TNS analysis

Page 34: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

INPUT SUPPLY: Maize Bran Distributing opportunities

33

Number of Jobs • 53 maize bran distributing opportunities

Explanation/Assu

mptions

• Maize bran is important as feed for both poultry and pigs. As maize bran is quite expensive at 5,000 per kilogram, some

farmers will choose to feed their pigs scraps around the house and leftover food. Key assumptions that 50% of new

farmers will want a weekly supply of maize bran and that there will be 1 input supplier for every 10 farmers

Challenges • Start-up capital: Start-up capital needed between 100,000 and 200,000 UGX to purchase enough materials to distribute

to farmers at small profit

• Road condition and transport to reach remote areas: Distance and poor road conditions to reach some farms may

create challenges for youth to sell their inputs

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank or utilized shared liability youth groups

• Road condition and transport to reach remote areas: Draw out routes for youth to reach remote areas in most

efficient way targeting farmers that would most likely purchase inputs and feed

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, and

understanding of commission needed to generate profit

• Entrepreneurship training – Develop business plan and strategy, understanding the best sourcing avenues, ability to

create sustainable relationships with farmers to become main supplier, driven to succeed despite having little to no guided

support

• “Life skills” training – Self-confidence to be able to sell maize bran to farmers and show farmers value addition of using

maize bran versus left-over food and other substitutes

• Other skills – Vast understanding of livestock production and ability to detect poor quality maize bran

Partnerships • UNADA – Gulu, UNADA – Kampala, Agribusiness Initiative Trust, JN Agritech International Ltd.

Additional

information

• Ability as a maize brand distributor is based on repeat customers and ability for youth to draw out realistic map of

supplying opportunities as highest demand for maize bran supply services will be remote livestock farmers

Source: Interviews, TNS analysis

Page 35: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

INPUT SUPPLY: Veterinary Services Supplier opportunities

34

Number of Jobs • 11 veterinary services opportunities

Explanation/Assu

mptions

• African Swine Fever is a major killer of pigs in Uganda. As such, there is a current undersupply of quality veterinary

services for pig farmers to pursue thus more farmers would require more youth offering veterinary services. The

assumptions are that 30% of new farmers will seek improved inputs and that there will be 1 input supplier for every 30

farmers

Challenges • Lack of knowledge of veterinary services: Given that STRYDE is working with rural youth, there may be a lack of

knowledge around proper pig farming techniques

• Road condition and transport to reach remote areas: Distance and poor road conditions to reach some farms may

create challenges for youth to sell their inputs

Opportunities • Lack of knowledge of veterinary services: : Link youth to pig farming experts and district veterinary experts, so youth

can gain specific skills in knowing how to reach pig farmers. Utilize books such as “A Guide to Pig Production at Farm

Level”, which will increase youth’s understanding of pig farming

• Road condition and transport to reach remote areas: Draw out routes for youth to reach remote areas in most

efficient way targeting farmers that own pigs and would need the veterinary services

Youth

trainings/skills

needed to

address

opportunities

• Entrepreneurship training - Develop business plan and strategy, and ability to network with pig farming experts and

district veterinary services who are willing to train youth in veterinary services.

• “Life Skills” training - Self-confidence to be able to sell his/her supplies and services to capital constrained pig farmers

• Other skills –Vast understanding of pig farming and a detailed knowledge of proper pig handling and best practices to

help build capacity of farmers

Partnerships • David Mutetikka and Matia Kabuye– Pig farming expert, Makerere University

• Tonny Aliro – District Veterinary expert, Gulu

• District Veterinary – Kayunga, Mukono, Mityana, Nwoya

• Vetcare Supplies and Services

Source: Interviews, TNS analysis

Page 36: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

PRODUCTION: Pig farming opportunities

35

Number of Jobs • 1050 pig farming opportunities (300 in Gulu, 250 in Nwoya, 200 in Mityana, 150 in Kayunga, and 150 in Mukono)

Explanation/Assu

mptions

• In the Northern region, the market for pork is growing quickly coupled with the largest percentage of households in Uganda entering farming

in the past 15 years. The greatest opportunity in the central region for pig farming lies in Mityana, which already has youth groups wanting

to enter the piggery market and can meet the growing Kampala market demand. Mukono and Kayunga are also ideally placed to meet the

pork demand in Kampala. The constraints for these markets is land availability for youth and limited start-up capital. Agriculture households

have grown 4% to 907,000 in the Northern region and .4% to 805,000 in the Central region in the past 15 years . Assuming similar growth

rates and that 9.7% of those households (Uganda Census of Agriculture 2002) go into pig farming, there will be 13,309 new pig farming

households from 2012 to 2015. Program assumes 14-15% of those in STRYDE districts and 50% are youth farmers as youth are more

excited to start pig farming than maize farming. Distribution of youth by region is based on land availability to youth and growth rates.

Challenges • Finance: Pig farming can be expensive given the initial cost of piglets, fluctuating price of maize bran feed and cost of creating a housing

structure for the pigs

• Production: Poor production habits stemming lack of attention and maintenance can kill a majority of the pigs, fetch the farmer a smaller

price at market, and make the pigs more susceptible to African Swine Flu

• Commercialization: Farmers lack access to market and rely heavily on price setting traders and brokers. Youth lack awareness of market

and potential profitability of pig farming

Opportunities • Finance: Create shared liability youth groups for youth to obtain financing or create youth groups focused on pig farming (done in Mityana)

where youth pool resources to purchase pigs to farm

• Production: Teach youth hard work involved in farming and help them understand the production dynamics of pig farming and best

practice in terms of what to feed them, how to watch them, where pigs should live, etc

• Commercialization: Train youth to be aware of market dynamics, cost/benefit of farming, and link youth to markets

Youth

trainings/skills

needed to address

opportunities

• “Financial literacy” training - Ability to take concise records of costs of feed, structures, vet services to understand cost per pig and

selling price needed to generate ample profit

• “Farming as a business” training - Understand different breed of pigs, what to feed pigs, how much and how often to feed, structure

needed in place for piggery housing, necessary veterinary services, when and how to properly breed pigs, price volatility of pork, etc.

• Entrepreneurship training – Develop a business plan and strategy, ability to network with pig farming experts, piglet suppliers, main bran

distributors, and understanding of the risks and rewards in entrepreneurship

Partnerships • Pig farming experts – Mutetikka, David and Kabuye, Matia – Makerere University, Various butchers in Kampala and Gulu, , BRAC, FINCA

Uganda

Source: Interviews, TNS analysis, Uganda Census of Agriculture 2002 (pig farming

statistics not available in later statistics)

Page 37: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

TRADER/BROKER: Trader/Broker opportunities

36

Number of Jobs • 61 pig trader/broker opportunities

Explanation/Assu

mptions

• With increase market opportunity and more youth beginning to farm, traders/brokers have the opportunity to purchase

from youth groups and pig farmers. Key assumptions that 75% of farmers utilize traders/brokers, each farmer has an

average of 4 pigs, and each trader takes one pig per week for the year.

Challenges • Start-up capital: Transportation can be very expensive. 1.0-2.0M Ugx shilling for used boda boda, 100k-300k for bicycle,

renting vehicle varies based on size and distance

• Transportation issues and variability of fuel prices: Road constraints and increasing trend of fuel prices cuts into rural

traders profit margins

• Commodity price fluctuation: Variance of prices can create losing opportunities if prices goes below cost threshold

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or

pursue “vouchers for work” program

• Transportation issues and variability of fuel prices: Draw out road maps and help youth realize how to calculate cost

per kilometer based on transportation means

• Commodity price fluctuation: Teach youth how to use mobile devices to find pig market prices and help the understand

year over year price variance by season

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, understanding of

commission needed to generate profit and constant and up-to-date knowledge market dynamics and potential

fluctuations of pig prices in local markets

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, create and leverage business

relationships with farmers, traders, and transporters, save money for future inventory purchases,

• Other skills – Needs ample transportation means to take pigs from buying to selling point, and ability to drive on difficult

roads

Partnerships • Gulu Abattoir Association, Roadside pork joints any other small to mid-size restaurants serving pork in the STRYDE

districts

Source: Interviews, TNS analysis

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TRADER/BROKER: Aggregation/Transportation opportunities

37

Number of Jobs • 13 pig transport opportunities

Explanation/Ass

umptions

• There is a local transport opportunity that is currently underdeveloped as Kampala is usually undersupplied with pork. A

representative from Wambizi slaughterhouse cooperative stated that it has difficulty sourcing pigs, thus keeping the butcher’s

capacity utilization at 50%. Key assumptions that each transporter takes 15 pigs per transport and 10 transports per year.

Challenges • Start-up capital: Start-up capital needed between 250,000 – 500,000 Ugx depending on size of truck and distance and working

capital between 1.5M and 3.0M UgX for purchase of pigs

• Pig price fluctuation: Variance of prices can create losing opportunities if prices goes below cost threshold

• Unforeseen negative circumstances: Poor Road condition, variability of fuel prices, unexpected death of pig, vehicle accident

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilized shared liability youth groups, or pursue

“vouchers for work” program

• Pig price fluctuation: Teach aggregators/transporters how to detect price variability of pigs and help them understand their cost

breakdown

• Unforeseen negative circumstances: Encourage aggregators/transporters to take insurance due to the size of personal

investment and inability to predict accidents

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to derive cost/benefit analysis and a firm understanding of needed commission for a

profitable endeavour, and understanding market dynamics and fluctuations of pork prices in both local and regional markets

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, create and leverage business

relationships with traders, and medium/large scale traders, save money for future inventory purchases, and ability to determine

best combination of commodity for maximum profit

• Other skills – Ability to drive commercial vehicles in difficult roads and traffic situations, and access to warehouse or other

avenue to aggregate commodities

Partnerships • Quality Cuts Butchery, Your Choice Butchery, Fresh and Roasted Pork Nsambya Butchery, Wambizzi Cooperative Society Ltd.

Butchery

Additional

information

• Transporters would be able to realize large amounts of profit, but large amounts of initial capital could prevent youth from taking

advantage of this endeavour

Source: Interviews, TNS analysis, The Smallholder Pig Value Chain: An opportunity

for growth and poverty reduction

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PROCESSING: Processor laborer opportunities

38

Number of Jobs • 50 processor laborer opportunities

Explanation/Assu

mptions

• Key assumptions that there is 1 major butcher in Northern Uganda and that will hire approximately 25 laborer and many

small butchers in each district hiring 5 laborers once pig farming increases. As most butchers are located in Kampala,

there is limited opportunity for youth in the central region to get involved in major processing due to the distance

constraints

Challenges • Competition for new jobs: There will most likely be competition for new butcher laborer jobs by youth with prior work

experience in labor

• Timeframe for jobs: New jobs could be available before youth are well equipped with skills needed to obtain them

Opportunities • Competition for new jobs: Understand job requirements and refine youth skills to meet those job requirements as

butcher laborer

• Timeframe for jobs: Continue discussions with miller operators to gain better understanding of timing challenges of job

requests and give them insight to how the STRYDE program is designed

• If “Vouchers” program is implemented, offer part time internships at local butchers with opportunity to transition into paid

position after vouchers program

Youth

trainings/skills

needed to

address

opportunities

• “Life skills” training – Ability to overcome idleness, social and emotional constraints and dependence on family

members to take jobs in this sector

• Others skills – Honest and hard working work ethic, ability to keep time, and not afraid to work in areas with a large

amount of blood

Employers • Gulu Abattoir, Various small and medium-size butchers at the district level

Source: Interviews, TNS analysis

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COMMERCIALIZATION: Roadside pork joint opportunities

39

Number of Jobs • 11 roadside pork joint opportunities

Explanation/Assu

mptions

• Once the supply of pork is closer to reaching demand, there will be an increase in the amount of roadside pork joints

offering pork. Key assumption that increased supply of pigs will promote 1% of new entrepreneurial roadside pork joint

activities

Challenges • Start-up capital: Initial start-up capital needed to build or buy small shop and working capital of between 200,000 and

250,000 Ugx to purchase pigs

• Ability to purchase pigs at competitive rate: Youth must understand their costs to calculate the amount needed to

charge to recover initial costs and profit

• Lack of youth capacity to run business: Youth lack understand of necessary inventory levels, tax requirements, supply

and demand, etc.

Opportunities • Start-up capital: Potential to partnership with microfinance organization or bank, utilize shared liability youth groups or

borrow money from youth group

• Ability to purchase pigs at competitive rate: Create linkages for youth to traders/brokers, so that youth can obtain

most favourable market rate

• Lack of youth capacity to run business: Teach youth financial literacy training and entrepreneurship skills. Link youth to

other roadside pork joints to understand the opportunities and challenges of the business.

Youth

trainings/skills

needed to

address

opportunities

• “Financial literacy” training – Ability to take clear and concise financial records to calculate profit/loss, and

understanding of commission needed to generate profit

• Entrepreneurship training – Develop business plan and strategy, manage own schedule, self -motivated,

understanding of highest unmet demand for a pork, business linkages to trader/brokers for supply pigs, up-to-date

knowledge of fluctuating pig prices, ability to manage own capital and inventory levels

• Other skills – Customer service skills to encourage repeat business

Partnerships • Traders/brokers, Youth Entrepreneurship Centre, Entrepreneurs in Action, Any roadside pork joints for youth to gain better

understand challenges and opportunities Source: Interviews, TNS analysis

Page 41: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

In summary, a total of approximately of 1200 jobs can be created through

increased pig farming

40

Ease of job creation

Attractiveness of opportunity

Source: Interviews, TNS analysis

11

1050

61

13

50

11

0

20

40

60

80

100

120

0 10 20 30 40 50 60 70 80 90 100

Maize Bran Distributor

Veterinary Services Supplier

Farmer

Trader/Broker

Agreggation/Transport

Processor laborer

Roadside pork joints

Page 42: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

41

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 43: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Maize Sector Contacts

42

District Type of assistance Organization Name Contact information

Kampala Seed supply NASECO Seeds • Kawere, Godfrey 0770618007

Kampala Maize milling Sunrise Commodities & Millers Ltd. • Monteiro, Vincent 0712624624

Kampala Export guidance Uganda Export Promotion Board • Samuel, Suuti 0772470649

Kampala Market Linkages Agtrade Ltd. Commodity Trading • Kasumba, Henry 0702503707

Kampala WRS guidance World Food Program Purchase 4 Progress • Odeke, Elvis 0757742002

Jinja Market Linkage AgroWays Ltd. • Ibengo, Richard 0782391354

Gulu Seed supply Victoria Seeds • Masaba, Francis 0774658384

Gulu Market Linkage WFP Gulu Warehouse • Oryema, Moses 0772221471

Gulu Maize Miller Louis Enterprises • Otim, Jimmy 0774366686

Gulu Maize farming guidance

Gulu Farmers Association • Lakor, Jackson 0774251975

Source: Interviews, TNS analysis

Page 44: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Pig Sector Contacts

43 Source: Interviews, TNS analysis

District Type of assistance Organization Name Contact information

Kampala Pig farming guidance

Active pig farmer + feed mixer, Makerere University

• Mutetikka, David [email protected]

Kampala Pig farming guidance

Active pig farmer, Makerere University • Kabuye, Matia [email protected]

Kampala Market Linkage Quality Cuts Butchery • N/A 0414268916

Kampala Market Linkage Fresh and Roasted Pork Nsambya Butchery • N/A 0414268826

Kampala Market Linkage Your Choice Ltd. • N/A 0414235347

Kampala Veterinary Supply Vetcare Services and Supplies • N/A 0414250241

Kampala Veterinary guidance Vertinerary Public Health, Makerere University • Muhangi, Denis [email protected]

Mukono Market Linkage Wambizzi Cooperative Society Limited Butchery • Lubega, Simon [email protected]

Gulu Veterinary Services District Veterinary Officer • Aliro, Tonny [email protected]

Page 45: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Other Youth Employment Contacts – Private Sector/Government

44 Source: Interviews, TNS analysis

District Type of assistance Organization Name Contact information

Kampala Input supply guidance AgriBusiness Initiative Trust • Gritta, Edward 0772456892

Kampala Input supply guidance JN Agritech International Ltd. • Redding, M.S 0712788030

Kampala Input supply guidance UNADA – Executive Secretary • Wilfred, Thembo 0712200511

Kampala Finance BRAC – Microfinance • Islam, Rafiquel 0702123378

Kampala Production guidance Agribusiness Management Associates • Ssango, Eria 0772521564

Kampala Crop best-practice guidance

National Crops Resources Research Institute

• Sseruwagi, Peter 0782505281

Entebbe Livestock guidance Ministry of Agriculture, Animal Industry • Opolot, Okaasai 0772589642

Mukono Employment linkage Coca Cola Bottling Company • Witta Mbubi Moses 0776044777

Gulu Commercialization guidnace

Gulu District Commercial Officer • Okumu, Bernard 0703580456

Gulu Input supply guidance UNADA - Gulu • Mbayo, Michael 0774251975

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Action plan - youth capacity building, networking, specialized trainings

45

Details Timeline

Build youth

capacity in farming

• Integrate maize and pig farming best practices through integrated “Farming as a

Business” curriculum and/ or have guest lectures teach youth on good farming

agronomic practice

• Assist youth in developing business plans and strategy, creating input

supply/veterinary road system to target customers efficiently, and equipping youth

with the skills to sell their supplies and services with experiential learning and role

playing

• Through Entrepreneurship training and “Financial Literacy” training, teach youth

skills such as managing their inventory, paying themselves a salary, pricing family

labor into costs, developing a profit/loss module, and understanding the

opportunities and challenges of entrepreneurship

- Guest lectures on Entrepreneurship could be Youth Steering Committee members

- Experiential learning and practice making profit/loss module will be most effective

• Teach youth proper customer service skills, the importance of the customer, the

significance of an honest and good work ethic

Q1, 2012

+3 yr

Hold networking

workshops

• Identify district veterinary suppliers, agri-business dealers, and other stakeholders

for youth to meet and build relationships to do business together once full equipped

• Set up mentorship program between stakeholders and youth for youth to have

direct contacts with any questions pertaining to their employment

Q3 – 2012, +3 yr

Initiate youth

trainings for

specialized skills

• Understand how youth want to get involved in agriculture and hold specialized

trainings where youth learn about different the work requirements of different value

chain actors Q3 - 2012, +3 yr

Page 47: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Action plan – stakeholder meetings, microfinance/lending options,

stakeholder outreach program

46

Details Timeline

Form and develop

cohesive youth

groups

• Form youth groups based on training programs and group dynamics (e.g. youth

with access to land paired with youth without access to land)

• Develop management of youth groups by having youth choose leaders for

leadership, management and oversight, and by laws

- Chairperson, Secretary, treasurer, etc.

- Structure of leadership must be predetermined

- Youth groups that lack collateral should set up shared liability groups or borrowing

schemes to obtain capital

• Train youth groups on proper governance for running a group

Q1 , 2012, +3 yr

Create dialogue

with microfinance

organizations

• Identify barriers that prevent microfinance organizations and banks to extend

lending options to youth and youth groups

• Based on recommendations from microfinance organizations and banks, help

youth develop business plans that adhere to the regulations and train youth around

the costs and requirements of loan financing.

Q2-Q3 – 2012

Conduct

stakeholder

meetings and

develop

stakeholder

outreach program

• Meet with potential job placement programs such as warehouses, millers, butchers,

etc. to understand what additional skills are needed for youth to obtain jobs in

these industries

• Continue dialogue with organizations to attend job fairs and engage youth in

employment opportunities

• Implement stakeholder job fairs and link youth to jobs

Q3-Q4 - 2012,

+3 yr

Page 48: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

Agenda

47

Youth Employment in Uganda

Key Employment Sectors for Youth in STRYDE districts

• Maize Sector Analysis

• Pig Sector Analysis

Action plan and contacts

Appendix

Page 49: STRYDE Uganda Employment Sector Analysis - … Uganda Employment Sector Analysis February, 2012 Executive Summary 1 • Uganda has the largest youth population in the world and the

The Ugandan annual production of agriculture continues to increase with

the growth of households entering the agriculture market

48

Total Production

CAGR (99-08) 3% -3% 14% 7% 15% 5% 7% 9% N/A

0

1000

2000

3000

4000

5000

6000

7000

8000

Cassava Sweet potatoes

Maize Beans Sorghum Millet Groundnuts Rice Simsim

2008 / 09

2005 / 06

1999 / 00

Production (in 1000 metric ton) CAGR

(99-08) 4.1%

Source: UNHS 1999/2005, UNHS 2005/2006, Uganda Census of

Agriculture 2008/2009

Note: Production of Simsim not available in 1999/2000 and 2005/2006


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