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Aquaculture Road Map Uganda

The Aquaculture Road Map for Uganda outlines the rapid growth of the aquaculture sector, driven by cage farming and international investment, while highlighting challenges such as reliance on imported feeds and limited access to quality fingerlings for small farmers. It identifies eight key interventions to enhance the value chain, including investments in domestic feed production and the development of a robust domestic consumer market. The report emphasizes the need for regulatory reforms and support for smaller farmers to ensure sustainable growth and food security in the sector.
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0% found this document useful (0 votes)
37 views88 pages

Aquaculture Road Map Uganda

The Aquaculture Road Map for Uganda outlines the rapid growth of the aquaculture sector, driven by cage farming and international investment, while highlighting challenges such as reliance on imported feeds and limited access to quality fingerlings for small farmers. It identifies eight key interventions to enhance the value chain, including investments in domestic feed production and the development of a robust domestic consumer market. The report emphasizes the need for regulatory reforms and support for smaller farmers to ensure sustainable growth and food security in the sector.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Aquaculture Road Map Uganda

Opportunities in the aquaculture value chain


Issued to: Netherlands Enterprise Agency (RVO)
Issued by: Larive International & Asigma Capital Advisory Services.
Date: 24th of March 2022.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

1. Executive summary
2. Overview
3. Sector status and growth
4. Feed
5. Breeding
6. Farming
7. Route to market
8. Enabling environment
9. Possible value chain interventions
10. Annex

Click to add text

Source of the Nile fish farm (2013)

2 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

A = Actual FY = Fiscal Year MD = Managing Director

aBi = Agricultural Business Initiative GDP = Gross Domestic Product MN = Million

ACF = Agricultural Credit Facility GM = General Manager MT = Metric Tonnes

BCN = Billion Cubic Meters HSE = Health Safety and Environmental NGO = Non-Governmental Organization

BN = Billion KMT = Kilo Metric Tonnes NEA = Netherlands Enterprise Agency (RVO)

B2B = Business-to-business Large-scale cage farmer = Large-scale cage farmers are OWC = Operation Wealth Creation
defined as having a minimum production capacity of 10 MT
B2C = Business-to-consumer p.a. = Per Annum
p.a. These are mostly members of the Uganda Commercial
CAGR = Compounded Annual Growth Rate Fish Farmers Association (UCFFA), some of whom have PE = Private Equity

capacity to directly import their own fish feed.


CY = Calendar Year SON = Source of the Nile

Larive = Larive International B.V.


DFO = District Fisheries Officer TiLV: Tilapia Lake Virus disease
LHK = Lake Harvest Kenya
DRC = Democratic Republic of Congo UCFFA = Uganda Commercial Fish Farmers

MAAIF = Ministry of Agriculture, Animal Industry and Association


F = Forecast
Fisheries
UGX = Ugandan Shilling
FCR = Feed Conversion Ratio
M&A = Merger & Acquisition
USD = United States Dollar

3 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Source of the Nile fish farm (2021)

4 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Executive summary

5 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

The aquaculture sector in Uganda ➢ The sector is completely dependent upon imported feeds. The high cost and poor
quality of domestically produced feeds can partly be attributed to the poor quality of
The aquaculture sector in Uganda is one of the fastest growing sectors in the country. The advent of raw materials, especially proteins, in-country, leading to feed producers having to import
cage farming on Lake Victoria and the entry of major international fish farmers have been drivers of the these raw materials. Addressing concerns in the raw material value chains in Uganda
fast growth. As a fast growing sector, directly linked to food security, it provides interesting opportunities would greatly lower costs, increase quality and will have spill-over effects in other
for the Dutch Ministry of Foreign Affairs to promote private sector development. The Dutch private livestock value chains such as poultry.
sector is also showing a high interest in the sector and its future development.
➢ Lastly, most of the farmed fish is currently being exported to regional markets. Other
Fish is a popular product for consumers, but prices are high. With catches from wild catch not able to livestock value chains have shown the vulnerability of such a model, exemplified by the
meet demand, there is a clear need to increase production. However, overall, most farmed fish is still impact of the recent ban on imports of Ugandan eggs by Kenya. Developing the
exported. The development of a strong home market would significantly contribute to a more resilient domestic consumer market is critical to long-term sector sustainability.
value chain.
Interventions and opportunities
Challenges for private sector development
➢ In response to these challenges eight comprehensive interventions have been
➢ Despite the rapid growth, overall sector size is only estimated at approximately 35,000 MT in 2020, identified. These present opportunities for Dutch expertise to contribute to sector
considerably smaller the official estimate of 107,000 MT. Farmed fish is nearly exclusively produced in development and the development of small and medium size fish farmers. A number of
cages. these interventions span the entire value chain and require a level of financial support
➢ Within the aquaculture sector, there is a clear divergence between the large farmers funded with not solely available using instruments from NEA. However, these have been included to
foreign soft loans or capital, and the smaller farmers with limited access to capital. Whereas the allow for other interested parties to potentially implement the proposed interventions.
former exhibit rapid growth in recent years, the latter, being especially pond farmers, facing structural In this way, other actors are invited to develop the aquaculture value chain, leading to
challenges impeding further growth. To support sustainable long-term growth and equitable sharing higher productivity, income, and sustainable growth.
of the benefits of the development of this sector, it is vital that the support system for smaller players
is developed as well. This study provides recommendations specific for this group of farmers. 1. Investment in domestic feed production;

➢ Critical to the development of the segment of small to mid-size farmers is an investment in domestic 2. Supporting the entire value chain through investments in raw materials;
feed production. Whereas larger players are able to import quality fish feed in bulk and enjoy import 3. Improving access to quality fingerlings;
tax exemptions, smaller farmers have limited access to quality affordable fish feeds. This should be 4. Improving technical capacity along the value chain;
coupled with improved access to quality fingerlings as well as an overall improvement of technical
capacity in the value chain. 5. Development of the domestic consumer market.

➢ Support to the small-to-medium farming segment should be private sector driven, given that 6. Improve financing options for small to medium farmers;
government-led initiatives such as OWC has had limited success in driving the sector forward. Overall, 7. Formation of farmers’ associations and other unifying bodies;
it is important that the position of farmers in the value chain is improved, potentially through the 8. Ensuring regulation is properly implemented;
formation of farmers associations, as market power is primarily held by traders.

6 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Market roadmap for the sustainable development of small & midsize aquaculture farmers in Uganda
Lack of affordable, quality Limited access to quality Limited technical expertise
Challenges Lack of quality raw materials
feed fingerlings along the value chain
In-country production of high-quality Supporting the entire value chain Making fingerlings easily accessible Training programs for farmers and
feed through investments in raw materials teachers
The quality of fish feed plays a major Although Uganda is one of the key There are currently only a few larger Current technical capacity levels are low
For intervention

role in helping the fish grow. Feed producers in East-Africa of raw hatcheries, primarily producing for across the value chain. In order to
Opportunities

quality is therefore a high priority for materials such as maize and soy used internal needs of large farmers. These improve overall technical capacity, it is
farmers so they would be willing to in fish feeds, quality and consistency are also mainly located in the central recommended that practical training
purchase it regardless of the price. are a major issue. Current domestic region of the country. programs are implemented. These
However high-quality feed is currently fish feed producers import their raw should be hosted at practical training
not produced domestically. This is protein ingredients from abroad due to Smaller farmers have very limited access centers, are advised to leverage digital
especially true for smaller fish farmers, a lack of quality inputs domestically. to quality fingerlings. Small farmers from tools, and incorporate business acumen
as they cannot import quality fish feed Western Uganda need to source as far skills.
directly. Investing in the maize and protein as Rock Springs in Tororo.
This is an opportunity for investment in supply chains to improve quality and Collaboration between Dutch and
local feed production. A local feed consistency is critical to the success of Improving production at existing Ugandan education institutes should also
manufacturer is critical to further local feed production and bringing hatcheries and starting new hatcheries is be encouraged, to improve the overall
democratic sector development, overall cost of production down, while critical to support sector growth. curriculum. Incorporating the needs from
allowing smaller farmers to access providing job creation. Increasing the number of hatcheries in the private sector in this collaboration
affordable feeds and prosper. This also Production increase of raw materials remote regions would reduce the would be highly beneficial to ensure the
requires the supply of quality feed would also support the development of distance to source fingerlings. education meets the rapidly developing
manufacturing equipment. other livestock value chains. job market requirements.
Fish feed prices are the main cost item The soya cake requirement of one large Kamuthanga hatchery, a third-party Lack of technical expertise is reported to
in fish farming production. In Zambia, size fish feed plant can provide fingerling supplier in Kenya set-up with be one of the key critical challenges by

Impact
investment in local feed production guaranteed offtake at a good price for support of the Dutch government, farmers. Training programs in Kenya
allowed for the doubling of production 400,000 smallholder farmers. currently supplies 1 to 2 million have shown that profitability of especially
from 2014 to 2017 and dramatically fingerlings to small farmers, translating smaller farmers increases by 20%-50%
reduced feed prices. to 300,000 to 1,000,000 kg of fish. with proper technical support

7 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Market roadmap for the sustainable development of small & midsize aquaculture farmers in Uganda
Lack of financing and Inefficient market Regulatory reform needs to be
Challenges Market dependency on export
insurance dynamics properly implemented
Development of the domestic Reduction in the cost of acquiring Formation of farmers’ associations Ensuring regulation is properly implemented.
consumer market. additional financing and other unifying bodies
For intervention

The aquaculture and the Fisheries and


Opportunities

At current, most of the aquaculture Given that most farmers are unable to Due to the limited market power of Aquaculture Bill looks to update the
production from Uganda is regionally borrow from commercial banks, capital farmers in the aquaculture sector, regulations within the sector that were last
exported, with limited domestic sales. constraints hinder further growth. farmers are often taken advantage of updated in the 60s. The bill is on floor in the
This is a risk to overall sector by traders and other market players. Parliament and looks like to pass.
sustainability, as the frequent border Agricultural initiatives (like ACF)
closures in the region and other trade designed by the government can solve Organization and unity of farmers The implications of the Aquaculture Bill 2020
disputes could potentially negatively this problem by recalibration of their through the formation of farmers’ on exports cannot be fully predicted. There is
affect the industry. requirements to be more associations would significantly raise a perception from the government that the
accommodative of smaller farmers. their power in the market, enabling law allows any manner of value addition such
There is a real opportunity to develop them to bargain for higher prices for as removing scales, intestines and packaging,
the local market for quality, fresh fish. Other initiatives such as the aBi model their fish. among others. However, industry insiders
This fish commands a premium and can work to get farmers access to express a worry that it might harm the sector
such improves profitability of the sector. guaranteed lines of credit from and there is a need for the government to
Moreover, this leads to better product commercial banks. address these legitimate concerns from the
quality and food safety for consumers. industry.
Over 67% of Ugandan production is Agricultural loan interest rates in On average, pond farmers receive At current over 67% of all farmed fish is
exported. As a healthy and high-quality Uganda range from 12% to 42%, with 15% less than cage farmers, primarily exported. Legislation that would impact the
protein, farmed fish can contribute business loans ranging from 21 to 41% due to their lack of market power in ability of Ugandan fish farms to export would
greatly to food security in the country, per annum. Smaller fish farmers are the value chain. This lack of market thus be highly detrimental to the
Impact especially given reducing catches from
wild fisheries. A domestic market also
unable to access the agricultural loans,
representing a 9% difference in interest
power is primarily due to low harvest
volumes, which can be tackled by the
development and status of this burgeoning
industry.
provides better opportunities for rates. This is if farmers can access formation of farmer groups.
smaller farmers, who are unable to commercial loans at all.
export directly themselves

8 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Overview

9 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Uganda GDP per capita per district

A rapidly growing country with fisheries being a historically important sector

➢ The Ugandan population has been growing at a rate of around 3% for the last decades. As a
result, its population has increased from 24 million people in the year 2000 to 45.7 million
people in 2021. The population is expected to increase to a 100 million people in 2050. This
population growth is even more rapid in the cities, with an annual urban growth rate of 5.2%.
➢ The country is especially young. 48% of the country is below the age of 15, with around 1
million people entering the job market each year.

➢ The GDP per capita in the country is 910 USD. Growth and economic activity are not equally
divided across the country. As illustrated in figure 1, the Northern and Eastern regions are
especially poor. The Ugandan economy grew by 2.8% in 2019/20, a sharp decline from 6.8% in
2018/19. The decline can be attributed to the COVID-19 pandemic that led to a decline in
economic activity in Uganda.

➢ Uganda is a predominantly agriculture-based economy, with agriculture, forestry and fishing


contributing to 24% of the total GDP in 2020. The fisheries sector contributed 2.3% to Uganda’s
GDP in 2020. The fisheries sector has a 5-year CAGR of 8%.
➢ Fish and fish products are the third highest value exports from Uganda after gold and coffee. In
2020, the total fish exports were worth USD 127.63 MN. However, this was a 28% decline from
2019 caused by reduced fish production and disruptions in transport from COVID-19 induced
lockdown. The government has a target of USD 698 million worth of fish exports in 2024/252. 3860
However, this income is primarily from wild-caught fisheries, not aquaculture. GDP per capita per region
Northern USD 174
➢ Local wild caught fish is an alternative to farmed fish, as are other forms of protein. For lower
Eastern USD 222
income groups, these are plant-based proteins, whereas poultry products are also increasingly
becoming a popular alternative that is decreasing in price. In contrast, fish prices have been Western USD 276
increasing in recent years. The competition from cheaper plant-based protein sources often Central USD 668
intensifies during the harvest seasons of crops such as beans. Kampala USD 3,860
Source: UBOS (2020)
31

10 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Major Inputs Production Processing Wholesale Retailing Consumption

Hatcheries Fingerlings
Domestic Market
• Government Local & • Restaurants /
• Private Farmer factory
Cage Farmers supermarket
• On-farm Associations processing • Local markets
• Surrounding
Ugandan Traders communities
Government (OWC)

Retailers
Feed distributors
Export Market
Feed Producers
Feed Pond Farmers • Regional
• Local Farmer Associations • International
• International
• On-farm Company own-retail
outlets

Enabling Environment

11 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Breeding1 Feed2 Farming

Estimated annual Est. Production


Location of hatcheries Est. Aqua feed sales Locations of mills Locations of farms
Player name production in Player name Player name (MT.year) / market
(State/Province) (MT)/ market share in % (State/Province) (State/Province)
fingerlings/year share in %

Distribution Centres
Rocksprings Fish Farm 24 million
Tororo, Eastern Uganda Kaffiika Feeds _ are present in all Yalelo 4,380 MT / 10% Buikwe, Central Uganda
Ltd fingerlings/year
regions the country

2.34 million Bushenyi, Western


Kabeihura Hatchery Ugachick Ltd 3 MT/hr Wakiso, Central Uganda SON Fish Farm 2,200 MT / 5% Jinja, Eastern Uganda
fingerlings/year Uganda

Bushenyi District 0.1 million Bushenyi, Western


Afro Kai Ltd 1.8 MT/hr Wakiso, Central Uganda IG Invest (U) Ltd 1,095 MT / 2.5% Jinja, Eastern Uganda
Hatchery fingerlings/year Uganda

9.6 million Namanve, Central


Matugga Fish Farm Ltd Wakiso, Central Uganda Laguna _ Agro Fish Farm 730 MT / 2% Buikwe, Central Uganda
fingerlings/year Uganda

0.12 million Kampala, Central Mukono, Central


Interfish Ltd Wakiso, Central Uganda Aqua Group _ Nam fish farm 190 MT / <1%
fingerlings/year Uganda Uganda

6 million Masaka, Central Mukono, Central


Ssenya Fish Farms Asante fish farm 135 MT / <1%
fingerlings/year Uganda Uganda

3 million
Pearl Aquatics Wakiso, Central Uganda Victoria treasures 100 MT / <1% Wakiso, Central Uganda
fingerlings/year

Hoima, Western
Yalelo N/A Buikwe, Central Uganda Rashid (L. Albert) 120 MT / <1%
Uganda

18-24 million Hoima, Western


SON Fish Farm Jinja, Eastern Uganda King Fisher (L. Albert) 40 MT / <1%
fingerlings/year Uganda

1 The indicated players in breeding all have one hatchery. As such, the stated amount is their estimated annual production. 2
12 Data on aqua feed sales was not readily available, but production capacity per hour for some of the key players is indicated. 3
Yalelo is still in a scaling period, increasing their volumes of fingerling production. As such, clear figures could not be 2022 | Aquaculture Road Map Uganda
established.
Enabling Possible value chain
Executive summary
Executive Summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Market roadmap for the sustainable development of the aquaculture sector

Strengths Weaknesses

➢ Limited technical knowledge.


➢ Ongoing projects by the EU and the UNDP to improve the aquaculture sector. ➢ Low levels of income among most farmers which prevents them from using high-quality
➢ Sector supported by the Ugandan government. feed.
➢ Few permits & licenses involved in starting an enterprise. ➢ Difficulty in accessing finance and insurance.
➢ Large untapped market of feed, fingerlings and fish. ➢ Low levels of professionalism among most farmers.
➢ Tax incentives for importing feed or any other inputs in the aquaculture sector. ➢ High dependency syndrome among subsistence farmers.
➢ High margins, especially for large-scale cage farmers. ➢ Scarcity of quality feed ingredients locally.
➢ Suitable climate and water bodies for further growth. ➢ Low incomes of Ugandans which limit the consumption of fish.
➢ Interest from the private sector in the industry, including from the Dutch private sector. ➢ Preference for wild capture fish by consumers.
➢ Heavy government involvement in the value chain.

Opportunities Threats

➢ Only a few large-scale hatcheries are producing quality tilapia and catfish fingerlings, offering
opportunities to enable growth. ➢ Competition from other cheaper sources of protein like plant proteins among locals.
➢ Limited local feed producers and low quality of locally produced feed offer an opportunity to ➢ Competition from capture fisheries.
support growth with feed production investments. ➢ Competition from cheaper sources of tilapia such as imported fish from China.
➢ Growing local and international market for farmed fish. ➢ Consolidation of market power in traders and brokers.
➢ Farmers are exploring the possibilities of growing different species like mirror carp. ➢ Dependency on export market.
➢ Government of Uganda plans to support the aquaculture sector. ➢ Possible trade disputes and other political risks.
➢ Capacity building of farmers to improve their technical knowledge and understanding of the ➢ Growing dominance of a few larger private sector players.
sector will lead to strong efficiency improvement.

13 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

14 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Sector status and growth

15 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Total aqua production in Uganda in 2020 is estimated to be 34,500 to 36,000 MT. For 2021, the total production estimate is between
44,000 – 46,000 MT. Pond farming accounts for 2-6% of total production.
Remarks on species split per production system
Total production of farmed fish, by source and species, in MT, in 2020 Cage production development,
historic and forecasted, in MT2
MAAIF estimates of aquaculture production in Uganda, in MT in (2020)1 ➢ Commercial cage production has been exponentially growing with a
CAGR of 46% in the last three years, driven by the entry of
international investors in the sector.
Total ➢ Based on expansion plans of existing major players, notwithstanding
aquaculture 107.336 political intervention, growth in cage farming for the coming years is
production expected to slow compared to previous years but nonetheless
98.056 remain high overall. Given the capital intensive nature of cage
+22,8% farming, growth is likely only to originate from larger players, which
Tilapia 79.220
also implies that small-scale farmers can only compete in ponds.
➢ Initial production projections by the industry organisation CCFA for
79.869 2021 have been 50,000 MT. These are reasonable given installed
Catfish 28.116
capacity. However, the increased costs of imported feed and limited
availability due to COVID-19 have negatively affected production,
Study estimates of aquaculture production in Uganda, in MT, 65.055
leading to a production estimates for 2021 from cages of 43,161 MT.
in (2020) ➢ Pond farming has been highly promoted by the government through
+45,5% 52.989 Operation Wealth Creation (OWC). Through this initiative, farmers
Total Total
aquaculture 34,500-36,000 are provided with fingerlings and starter feed for a period of 2-3
Cage 43.160 months. This has been one of the major drivers of new entrants into
production
Pond the market and currently drives growth. However, sustainable
34.000
growth is constrained by the limited ability of the farmers to sustain
34,500 – feeding once the distributed starter feed runs out due to capital
Tilapia 22.000 constraints.
36,000
14.000 ➢ Due to structural challenges, pond farming is unlikely to substantially
grow in the next years without fundamental long-term investment in
capacity building and attitude-change of farmers. As a spin-off of the
Catfish 300 - 900 growth of the cage farming segment, pond farmers will likely benefit
from better access to farming inputs.
A18 A19 A20 E21 F22 F23 F24 F25
Source: Research by Larive Group (2021). The figure of 2020 and 2021 is a best guess estimate, based on
16 reporting by DFO’s, CCFA and internal calculations. More information on market sizing methodology can be 2022 | Aquaculture Road Map Uganda
found in Annex 1. 1 MAAIF Annual Performance Report 2019/20 2 Data from CCFA and adjusted by Larive-Asigma.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Fish farming is primarily concentrated around the Lake Victoria basin.


Total minimum number of confirmed cages on Lake
Regions where aquaculture is practiced, Total minimum
Victoria, per cage size, in number of cages in 20211
number of confirmed cages on Lake Victoria, per cage Remarks on cage farming
size, in number of cages in 20211
Total 1.809
➢ Officially, 25,000 ponds and 5,000 cages are
registered in the country. However, many of these
Circular cages, 20m diameter 63 are not in functional use. This is especially true for
pond farms, which are often started under
support programs but abandoned after this
Circular cages, 15m diameter 32 support ends
➢ In terms of production capacity, in one circular
Albertine cage of 20 meter diameter, the same volume can
Region Circular cages, 10m diameter 205 be produced as in fifty 5 meter square cages.
160 MT ➢ Many of the cage farming operations are aimed at
(0.4% of the export market, where relatively higher prices
cage Circular cages, 5m diameter 74 for tilapia can be obtained and high volumes can
farming) be directed towards.
➢ Outside of Lake Albert and Lake Victoria, no
Square cages, 10 m sq 227 notable fish farming is taking place. Other lakes,
such as Lake Kyoga or Lake Bunyonyi are unsuited
for fish farming due to their shallow nature or
Rectangular cages, 10 by 5m 2 temperatures.
Lake Victoria Basin, ➢ Growth in cage farming in Uganda has been driven
43,000 MT (99.6% of by a few large-scale commercial farms established
Square cages, 5m sq 1.039
cage farming) especially around Lake Victoria. These have been
investments from foreign investors who entered
the market between 2018-2020.
Square/rectangular cages, <5m 17
Cage and pond farming ➢ The 2019 flooding of the Lake Victoria Basin has
led to many smaller cage farmers exiting the
Pond Farming sector, and consolidation of the industry.
Linear cages, 2 m 150

Note:1Research by Larive Group (2021), based on available satellite imagery. Please note that the above number of cages are
17 likely underreported, as at the linear cage level, the satellite model was able to discertain individual cages accurately. With
2022 | Aquaculture Road Map Uganda
industry experts state more cages are likely to in terms of linear cages and square cages segment.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

The aquaculture sector in Uganda has seen many entrants in the last decade

Observations, Business operators


Total number of new cage farmers started per year in Uganda 1
40 ➢ The aquaculture sector in the Lake Victoria basin
is relatively new. Only substantial activity of new
entry has taken place in the last decade after
35
adoption of cage farming.

30 ➢ Around 89% of the operators started their


business since 2015.
25 ➢ There are a few fish farmers, such as Source of
the Nile, who have started prior to 2010.
20 However, these only have scaled in recent years
as well.

15 ➢ In general, industry insiders describe the


business cycle of aquaculture operators as a
boom and bust cycle of around five years.
10
➢ Growth of new entrants has stabilized in recent
5 years, most likely due to the pandemic. However,
some of the existing fish farmers operators are
expanding significant, potentially signalling a
0 maturing sector.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Uganda 4 2 3 6 9 7 27 13 29 40 31 19

1Information based on census data prepared for the FAO by Lattice Aqua (2021). Total number of
18 farmers is likely to be underreported as not all farmers were interviewed in Uganda. 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Growth in cage farming has been driven by large scale commercial farmers whereas growth in pond farming is driven by government
initiatives
Pond Cage
➢ Pond farmers struggle to obtain a good price for ➢ There is a growing movement of environmentalist and
their fish because of stiff competition from cage fishermen towards cage farming, which have contributed
farming and wild capture. Farmers reported to security problems and vandalism of cages. If such
knowing at least two farmers who have closed movements gain traction, government intervention could
their pond farms in the last two years. see restrictions to cage farming.
➢ There is a considerable number of pond ➢ Government intervention is a risk to sector development.
farmers exiting the sector after one first harvest The new Fisheries and Aquaculture Bill requires all
cycle, mainly due to poor technical performance exports of fish to have undergone some form of
and high feed costs, a trend that can be processing, which includes only gutting or scaling.
observed throughout the country. Many people Industry stakeholders have expressed their concern, as a
consider fish farming as an additional activity to considerable proportion of production is exported, and
supplement their food and income sources, in regional preference is for fresh fish. Moreover, border
which they limitedly invest and combine with closures and other unexpected political measures
other farming to supplement income. negatively impacting trade pose a significant risk to sector
development, as also exemplified in other value chains.
➢ The current utilization level of ponds is poor,
with limited production per pond. Increased ➢ Cage farming is currently completely dependent upon
production intensity from ponds could be imported feed, making it susceptible to supply shocks
achieved by the adoption of commercial feeds, and highly influenced by the increased prices of transport
but high costs of feeds are deterring farmers. In due to COVID-19. Domestic production of fish feed could
general, pond farmers report very high feed be a major stimulus to development, if these feeds can be
prices to be the main constraint to growth. competitive given the high costs of inputs.
➢ Professionalism is highly lacking in the sector, ➢ The capital-intensive nature of current international
with low skills levels, low commercialization players in cage farming also implies that small-scale
levels and a high dependency on donors for farmers can only compete in ponds. Growth is thus only
free inputs. likely to come from larger investors, which can be both
foreign as well as wealthy Ugandans. VT cage farm lake Victoria, Entebbe

19 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Long-term sustainable development of the sector requires mitigation of possible risks

Avoiding resource conflicts Impact of aquaculture development on domestic raw materials


availability and demand
➢ Lake Victoria is a shared public resource, used for different economic means.
It is also of critical importance to fishermen, tourism and for other livelihood ➢ The growth of the aquaculture sector will increase the need for animal feed and associated
generating activities. Unregulated growth and limited community raw materials. Fish is the most efficient form of animal protein production, but nonetheless
participation can lead to conflicts. requires feed and feed inputs. At current, there is already high competition for raw
➢ Such conflict has been observed in Kenya, where cage farmers do not need materials such as maize and fish meal in Uganda.
to consult local communities prior to starting operation. 1 ➢ Increased demand for raw materials due to increased fish production can lead to
➢ Adequate regulation that ensures community participation and consultation competition with human consumption, for example when using mukune as an ingredient
is thus crucial for long-term sustainable growth. Zoning, the designation of for fish meal and fish feed production.
specific areas of the lake to specific economic activities, is an important tool ➢ It is thus critical to increase the overall production of raw materials in Uganda, as well as
to guide growth in the future. Zoning of Lake Victoria is executed as part of ensure that the feed ingredients used are not in direct competition with human
the EU-EAC True Fish Farming Story in Lake Victoria Basin (EU-TRUEFISH) consumption. This can be achieved by including alternative feed ingredients from current
project. waste streams such as brewers yeast in feed formulation or using soy cake.

Equitable growth and development of small and mid-size businesses Environmental impacts
➢ Recent growth has been primarily driven by foreign, large-scale investments. These ➢ Fish farming can lead to negative environmental impacts, if it is not well-managed
major companies are able to integrate and overcome crucial value chain constraints and poor farming practices are applied. Key risks associated with cage fish
such as a lack of quality feed and fingerlings in-house. farming are eutrophication, escapees of invasive species and disease
➢ However, for equitable growth of the sector to develop, it is essential that crucial transmission.
support services are also available for smaller farmers. Suggestions how have been ➢ To avoid eutrophication, it is important that cages are only placed in suitable
provided in this document from page 65. locations with sufficient depth and water flow as well restrictions on the overall
➢ In Zambia, a divergence occurred, where only large fish farms have been able to number of cages installed based on the carrying capacity of the water body.
develop and sustain. Egypt did manage to involve smaller to medium size businesses. Zoning is critical to manage this risk and is already being addressed by the EU-
This was achieved by providing essential support services at aqua parks. TRUEFISH project.
➢ With decreased wild population and increased competition from farmed fish, ➢ Regional monitoring systems of diseases such as TiLV is also crucial to long-term
fishermen are also at risk of losing their livehoods. These form a key group to target sector health.
for involvement in the aquaculture value chain to ensure local communities benefit
from sector growth.
1 https://www.standardmedia.co.ke/business/financial-standard/article/2001418101/cage-fish-farming-roils-the-waters-of-regional-
lake. 2 Kaminski et al. (2018). Commercialization and upgrading in the aquaculture value chain in Zambia.
20 2022 | Aquaculture Road Map Uganda
https://wwwnce/article/pii/S0044848616311607 3Obwanga et al. (2018). A Comparative study of aquaculture sector development in
Egypt, Ghana and Nigeria: Insight and Lessons for Kenya. 3R Research Report 006.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Cage farming is more profitable than pond farming with farmers making 39.9% profit margins.

Farmgate build-up tilapia cage

$3.50 60.0%

50.1% $2.91
$3.00 $1.16
50.0%

Cost as % of Selling Price Per kg


$2.50
40.0%
Value in USD Per kg

$2.00
$1.46 $0.12
$0.00 $0.01 30.0%
$1.50 39.9%

20.0%
$1.00

0.3% 10.0%
$0.50 4.2%
1.6% 3.4%
$0.10 $0.01 0.5%
0.0%
$0.05
$- 0.0%

➢ Large scale cage farmers such as Yalelo and SON fish farm directly import their own feed at a blended price of USD 0.91 per kg of feed. At an FCR of 1.6, this translates to a cost of USD 1.46 of feed
needed to produce one kilogram of Tilapia in a harvest season. The large-scale cage farmers have their own integrated retail outlets where they sell at premium retail prices at higher margins. Prices
used are average retail prices of main integrators.

Note: Assumptions for the value chain analysis modelling can be found in the Annex. Cost of fingerlings was determined by data from
interviews. First, regarding the total costs incurred on fingerlings in a harvest season was established. Total costs for fingerlings per
21 2022 | Aquaculture Road Map Uganda
harvest was divided by total harvest weight to assess pricing. Additionally, dominant hatcheries like Rocksprings were interviewed who
shared their fingerling prices, which were used as reference.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Large scale pond farmers are making margins of -2.8% of the final selling price

Value chain build-up tilapia pond


$2.5 90%
81.4%
$0.09 $0.08
$0.01 $0.01 $0.04 80%
$0.07 $0.04
$2.0
70%
$1.83

Cost as % of Selling Price Per kg


60%
$1.5
$2.24
Value in USD Per kg

50%

$1.0 40%

30%
$0.5 2.1% 0.2%
3.5% 20%
$0.08 $0.05 $0.00
3.3% 0.3% -$0.06
0.4% 2.0% 4.2% 3.6% 10%
$- 1.8%
0%

-2.8%
$(0.5) -10%

➢ Large scale pond farmers rely on imported commercial floating feed from suppliers such as Koudijs and Laguna bought from local distribution centres and retailers. The blended average price
per kg for feed from these suppliers is USD 1.21. Based on an average FCR of 1.51, a farmer spends at least USD 1.83 on feed per kg of biomass produced in a harvest season. Commercial pond
farming is generally seen as not profitable in the country due to high feed prices and poor farming practices.
Note: Assumptions for the value chain analysis modelling can be found in the Annex.
22 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Catfish farming in ponds obtain solid profit margins of about 23.3% % for the farmers mainly because they utilise alternative feed
sources such as blood meal. However, total production from such ponds is limited due to low production intensity.
Value Chain Build-Up Catfish Large-Scale Pond
$1.80 50%

$0.09
$1.60 45%
43.8% $0.04
$0.38
40%
$1.40

Cost as % of Selling Price Per kg


35%
$1.20
Value in USD Per kg

$0.02 $0.10 30%


$0.01
$1.00 $0.09
$0.71
$1.62 25%
23.3%
$0.80
20%

$0.60
15%

$0.40
10%
$0.08
$0.01 6.0%
$0.20 5.9% 5.3% 5.8%
4.9% 5%
$0.10
2.5%
0.6% 0.8% 1.1%
$- 0%
Pond Preparation- Catfish Fry Catfish Fry Catfish Feed Costs Catfish Labour Catfish Formal Taxes Catfish Casual Labour Other Costs Farmer Margin Broker Margin Trader Margin Selling Price
Catfish Transportation at Harvest

➢ Typically, catfish farmers only use commercial feed for three out of the ten months of the harvest cycle. For the remainder of the cycle, farmers rearing Catfish in a monoculture setting rely on
alternative feeding means such as blood meal and chicken intestines. Farmers that practice polyculture only feed the Tilapia in the pond and leave Catfish to also feed on Tilapia fingerlings.

Note: Assumptions for the value chain analysis modelling can be found in the Annex.
23 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Commercial catfish farming, requiring higher production intensity, requires commercial feeds. Catfish farmers make margins of -
18.3% of the final selling price if they would only rely on commercial feeds, demonstrating current need for mixed feeding strategies
Value Chain Build-Up Catfish Large-Scale Pond
$2.00 100%
$0.10
85.3% $0.01 $0.02
$0.09 $0.09 80%
$1.38 $0.04
$1.50

60%

Cost as % of Selling Price Per kg


Value in USD Per kg

$1.00
$1.62 40%

20%
$0.50

5.9% 4.9% 5.3% 6.0% 5.8%


$0.01 0.8% 1.1% 2.5%
0.6% 0%
$0.10 $0.08
$(0.30)
$-
Pond Preparation- Catfish Fry Catfish Fry Catfish Feed Costs Catfish Labour Catfish Formal Taxes Catfish Casual Labour Other Costs Farmer Margin Broker Margin Trader Margin Selling Price
Catfish Transportation at Harvest -20%

-18.3%
$(0.50) -40%

➢ In a scenario where a catfish farmer uses commercial feed for the entire duration of the harvest cycle, they incur losses of 18.3%. Farmers however only use commercial feed for the initial three
(3) months and rely on alternative feeding means for the remainder of the cycle.

Note: Assumptions for the value chain analysis modelling can be found in the Annex.
24 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

COVID-19 reduced the margins earned by fish farmers in Uganda

Feed
➢ COVID-19 has led to a general increase in feed prices.
➢ Commercial cage farmers used to import 1 MT of feed at USD 710-715 before the COVID-19 pandemic but this has now risen to USD 910 per MT of feed.
➢ During the lockdown, there was scarcity of imported feed on the Ugandan market resulting from the disruption in transport.

Fish production
➢ Most farmers delayed their harvests due to a fall in fish prices.
➢ Farmers reduced their investment in aquaculture due to a reduction in overall incomes resulting from the reduced economic activity during the lockdown.

Fish prices
➢ The average price of tilapia was UGX 8,000 (USD 2.16) per kg before the COVID-19 pandemic. This fell to approximately UGX 7,500 (USD 2.03) per kg during the lockdown which reduced
farmer margins. Fish prices have now stabilized and risen back to an average price of UGX 8,000 (USD 2.16) per kg for tilapia.
➢ The demand for fish reduced due to a fall in incomes earned by consumers. Demand was also affected by the reduction in exports to world markets1.

Export market
➢ Before the COVID-19 pandemic, fish at the Busia market was exported to Kenya by bicycles. The bicycles would take the fish to Kenya where it would then be loaded onto buses and trucks
and then delivered to the different buyers.
➢ When the borders were closed during the lockdown, Kenyan exporters started using a truck that would be loaded at the Busia market and deliver the fish directly to the Kenyan buyers. The
truck can carry between 2 and 5 MT of fish in each trip.

Local market
➢ Uganda has had two nationwide lockdowns since the outbreak of COVID 19. The cumulative economic effects of the ensuing lockdowns have trickled down to consumers who have had their
disposable income reduced. Fish which is considered by most as a luxury item has had to take second place to other food sources such as beans.
➢ Local markets that usually sell fish had to close to ensure safe social distancing measures are adhered to. This meant that fewer traders are sourcing fish from farms and fewer buyers are
coming to the market.

1Chris Mukiza. 2020. Impact of COVID-19 on Key Economic Activities in Uganda and Suggested
25 Policy. - Impact-of-COVID-2019-On-the-Ugandan-Economy692020.pdf (ubos.org) 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Feed

26 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Cage farming is driving growth in feed consumption in the sector, but is completely reliant on imported feeds

Remarks on feed market


Commercial feed market, Growth in commercial feed Total official imports of fish feeds, in MT,
per species, in MT, based usage in cage farming, from 2015 to 2019 ➢ Cage farming is driving the total growth in uptake of commercial
on reported FCR. historic and estimated, in MT, feeds in Uganda. Cage farmers exclusively use floating fish
based on reported FCR1. feeds, combined with some supplementary feeding by some
actors.
➢ Uganda is an importer of fish feed. The official quantity of
imported fish feed into Uganda has consistently risen by a
69.058 CAGR of 26% between 2015 – 2019.
26.885
Total 70,397 - 73,026 ➢ The high year-on-year change in feed imports recorded in 2018
corresponds with the influx of international investors into
+26% commercial cage production in the same year. These import
54.400 feed directly. With no notable domestic fish feed producers
20.794 (yet) and increased demand, feed imports are expected to
continue to grow.
➢ Domestic fish feed producers such as Ugachick are reported to
be considering to exit the industry. They have failed to compete
Catfish 458 - 1,356 in terms of quality and farmers have switched to imported
35.200 13.800
feeds. On the other hand, Afro Kai is another local feed supplier
12.313 that won the bid to provide starter feed under the Operation
10.671 Wealth Creation (OWC) program. Farmers report the feed made
22.400 by Afro Kai to be of fairly good quality.
➢ Other small-scale feed producers such as Nsava Feeds have
scaled down their fish feed production citing low quality
Tilapia 69,939 - 71,670 ingredients. Ugachick reported to import all off its main feed
ingredients due to a lack of domestic quality ingredients.
➢ Local feed manufacturers tend to use lower quality feed lines
imported from China. These do not produce fish feed to the
quality demanded on the local market, and pose an opportunity
A18 A19 A20 E21 2015 2016 2017 2018 2019 for the Netherlands to engage in.
Source: Research by Larive Group (2021). Data for imports of 2020 were not available at Ugandan Customs reportedly
27 due to internal reorganizing of the reporting systems. Note1: Used FCR for conversion is 1.6, based on assessment of
industry experts with detailed insight in the practices of cage farmers on Lake Victoria. Reported FCR by interviewed 2022 | Aquaculture Road Map Uganda
farmers themselves state an FCR of 1.5. 1.6 has been used as it was deemed to be a more reliable metric.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Local feed production is constrained by high prices, quality inputs and unreliable production.

➢ Few domestic producers: Uganda has few domestic fish feed producers. The two ➢ On-farm feed production: Small-scale farmers resort to mixing their own feed on the farm.
prominent fish feed producers are Ugachick and Afro Kai Ltd, with smaller feed producers Some that have feed mills produce for own-farm consumption. Own farm production is
like Nsava Feeds and Sante fish feeds. However, Ugachick has been scaling down its fish supplemented with imported feed products due to inconsistences in local production.
feed production after numerous complaints about its quality and stiff competition from Farmers resort to on-farm feed production because:
imported commercial feed. Investment in quality domestic feed production is critical to
support sustainable sector growth. o Commercial feed prices are high.

➢ Quality: Majority of the farmers associate domestically produced feed with low quality. o The quality of feed on the market is unreliable.
Farmers also quote inability to verify the protein content of domestic feed. From the field,
o The supply of feed is unreliable.
farmers exhibited an increased sensitivity to the quality of fish feed, domestic players have
failed to maintain consistent quality due to the high costs of sourcing protein sources and
have in turn ended up compromising on quality. For some of the domestically-supplied
feed, the ingredients such as silver fish (“mukene”) are highly adulterated i.e. it is frequently
mixed with sand to increase their weight.
➢ Production capacity: Availability of quality feed was cited as the biggest challenge among
fish farmers. Currently, more than 70% of the fish feed used is imported which points to
inadequacy in domestic feed production. Some of the domestic feed producers reported
that they currently lack the capacity to produce enough quality feed to meet local demand.

➢ Quality ingredients: Domestic feed millers indicated that they have difficulties of sourcing
quality protein sources domestically and have resorted to import them entirely. Alternative
high protein feed sources such as black soldier fly larvae are being piloted but are also
constrained by the high price attached to them.

➢ Community-based production: Most people who start community-based feed production


businesses reportedly end up exiting due to failure to sustain production. The drop off is
mostly because the cost of production is very high, with over 60% of the total production
cost of a MT of feed spent on sourcing plant and animal protein. To off-set the high
production costs, feed producers tend to compromise on feed quality which diminishes the
demand of their feed among farmers. Community feed mill at the biggest pond farm
in Luwero, Central Uganda

28 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Breeding

29 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

There is a severe lack of tilapia and catfish fingerling


producers for third-parties.

➢ Most pond farmers source both tilapia and catfish fingerlings from private, third-party
hatcheries. The average size of a tilapia fingerling is 2 grams. A 2-gram tilapia fingerling is
sold at UGX 200 (USD 0.05). Catfish fingerlings are bought at UGX 300 (USD 0.08).

➢ Some farmers get their fingerlings from government hatcheries such the Kajjansi hatchery
which is under the Aquaculture Research and Development Centre, (ARDC).

➢ Farmers who lack hatcheries mainly rely on fingerling suppliers in the surrounding
communities. Large scale cage farms such as Yalelo and SON fish farm have their own
private hatcheries where they produce fingerlings for their own consumption.

➢ Most on-farm fingerlings are of low quality because of limited technical knowledge in the
establishment and operations of the hatcheries. Some farmers use rudimentary
approaches such as digging shallow holes to do the on-farm breeding.

➢ Some farmers are unable to farm catfish because they are unable to access quality
fingerlings.

➢ There are a limited number of hatcheries providing fingerlings for third-party, smaller
farmers. Large-scale hatcheries include Rocksprings Fish Farm, SON Fish Farm, Matugga
Fish Farm, Pearl fish farm and Ssenya fish farm. Among these, only Ssenya fish farm
produces catfish fingerlings. However, these cannot meet demand and general quality is
not high.

District hatchery in Bushenyi, Western Uganda

30 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Estimated annual
Hatchery Species Third-party sales Private Size (grams) Price (USD)
production (Millions)

Rocksprings fish farm Tilapia √ 1 0.03 24

Tilapia √ √ 0.5 - 1 0.04 0.96


Kabeihura fish farm
Catfish √ √ 3-5 0.08 1.38

Bushenyi district hatchery Tilapia √ 1.1 0.03 0.1

Matugga fish farm Tilapia √ - - 9.6

Inter fish farm Tilapia √ - - 0.12

Ssenya fish farm Catfish √ - - 6

SON fish farm Tilapia √ - - 18 – 24

Yalelo Tilapia √ - - -

Pearl Aquatics Tilapia √ - - 3

31 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Fingerlings are scarce as there are only a few hatcheries operating

Rocksprings Fish Farm Ltd


➢ Rocksprings is a privately owned tilapia hatchery in Tororo district, Eastern Uganda. It has
been in existence since 2011 and is one of the largest hatcheries in Uganda.

➢ Rocksprings has been in existence for 10 years and currently boasts over 65 ponds, which
include breeding, conditioning, treatment and grow-out ponds.

➢ Rocksprings has an annual production of over twenty four million fingerlings, which are sold
to clients all over Uganda. Each 1g fingerling is sold at a price of UGX 110 (USD 0.031).
➢ The hatchery currently imports its own feed directly from Zambia.
Rocksprings Hatchery in Tororo, Eastern Uganda
Kabeihura hatchery
➢ Kabeihura hatchery has been in existence since 2000 and is run as part of an integrated
Kabeihura Mixed Fish Farm in Bushenyi district. It is the largest hatchery in Western Uganda
and serves the entire region. Farmers who don’t get their fingerlings from Kabeihura travel
as far as Tororo in Eastern Uganda or Matugga and Entebbe in Central Uganda to get high
quality fingerlings.
➢ Kabeihura produces an estimated 960,000 tilapia and 1,380,000 catfish fingerlings
annually. The tilapia and catfish fingerlings are sold at USD 0.04 and USD 0.08 respectively
at average sizes of 0.5 – 1 gram for tilapia and 3 – 5 grams for catfish.

Other hatcheries
➢ Bushenyi district also boasts a district hatchery that produces 100,000 (1.1 gram) tilapia
fingerlings annually that are sold at a subsidised price of USD 0.03 each.

Tanks for breeding Catfish in Western Uganda

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Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

NARO institute (2021)

33 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Farming

34 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Earthen ponds are the predominant production system in Uganda in nearly all districts but cages produce more volume.

Small-scale cage Large scale cage Small scale ponds Large scale pond

Mid-to-large size HDPE cages


Metallic cages, homemade
Type of are mostly used in this
cages or smaller HDPE cages
production segment. Some farmers also Primarily earthen ponds, with some concrete ponds.
are common in this
systems have breeding ponds or
segment.
concrete tanks.

Reported median pond size for


Small-scale pond farmers have an large scale farmers is 775 square
Larger cage farmers produce
Smaller cage farmers average of 2 - 3 ponds with unstable metres and farmers report to
more than 10 MT per year,
Size produce from 2 to 10 MT production throughout the year. Median own up to 16 ponds. Median
up to over 4,000 MT per
per year. annual production is between 0.05 - 1.9 production is 3.6 MT of fish per
year.
MT. year
Small-scale fishponds in Lira, Northern Uganda

Fish type Tilapia Tilapia Tilapia, catfish Tilapia, catfish

Most farmers in this segment venture


into pond farming as beneficiaries of the
Imported floating
OWC initiative. OWC provides fingerlings
commercial feeds,
and starter feed to the farmers for three Predominantly using imported
sometimes complemented
Feed usage Floating. months. After this period, farmers use floating commercial feeds.
with alternative feed
on-farm feed production using
ingredients such as caridina
ingredients such as maize bran, silver
shrimp.
Earthen pond in Mbarara, Western Uganda
fish and leftover food. As such, their
commercial feed usage is limited.

Small scale pond farmers predominantly Surrounding communities,


Sales Traders and surrounding Integrated distribution practise fish farming at a subsistence through local auctions and to
channels communities. channels and traders. level and sell to ssurrounding traders.
communities. A large-scale pond farm in Bushenyi, Western Uganda

35 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Low levels of professionalism among most Ugandan pond farmers

➢ Education can be used as a proxy of pond farmers’ level of professionalism. Majority of the ➢ The major bottlenecks in pond farming such as poor-quality feed usage, limited water
farmers interviewed have learned on the job with the aid of Technical Officers. A few quality testing and biosecurity measures are all an underlying result of limited technical
commercial farms employ full-time technical personnel with training in aquaculture. These knowledge. This poses a significant gap that must be bridged for pond farming to thrive.
farms have thrived and have realised increased production. Efforts should be channelled towards capacity building to instil farmers with the basics of
aquaculture, a move that will increase professionalism among farmers. This will result into
➢ High levels of professionalism can be evidenced in the large-scale segment of both cage increased aquaculture production and feed usage.
and pond farmers. This segment of farmers have shown adherence to commercial feed
usage, hiring of technical staff and proper record keeping. Other qualifiers of
professionalism such as water quality testing and biosecurity are still severely lacking. In
most districts, water testing equipment is available at a district level though farmers are Farmers' Level of Education
generally unaware of the parameters that are important to ensure increased production.
Large scale pond farmers tend to be more professional with practices such as hiring
qualified farm managers to run their farms. The small-scale category of farmers have Learned on the job at this farm 50%
shown overreliance on government initiative such as OWC for fingerlings and feed, a model
that is unsustainable in the long run. Technical Officers 10%
➢ Water quality testing and biosecurity measures are also important in determining the
professionalism of a farmer. While 73% of farmers test their water quality, field data Short course (few days) 10%
showed that only about 50% of them applied any biosecurity measures. Water quality
testing is left to the Technical Officers in the districts that possess water quality testing University, specialised in aquaculture 10%
equipment. As such, it is only done on occasion, indicating low level of professionalism.
Some programs such as PESCA have helped through provision of testing equipment to
model farmers in certain districts such as Masaka and Mbarara. Some of the visited Learned on the job at a previous farm 10%
districts did not have water testing equipment and as such, they did not conduct any water
quality tests. Long course (several weeks) 5%

University, specialised in agriculture; 5%

36 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Pond farmers mainly use their own capital in the operations of their farms

➢ 68% of pond farmers started their pond farms with their own capital.
71% of pond farmers aim to expand their operations using their own Commercial bank lending rates1
capital and returns from the current activities. 22%
➢ Cage farmers are either financed through foreign investment and 20%
debt, use own capital or front other owned business to acquire loans
to use for their fish farming enterprise. 18%

➢ There is a general fear of debt financing especially from banks among 16% Commercial banks
pond farmers because of the high interest rates and subsistence ACF
nature of their farming activities. Only 9% of traders started their pond 14%
farms with loans from commercial banks. 12%
➢ Banks are generally wary to lend money to fish farmers due to the 10%
perceived high risk.
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
➢ Uganda has the highest commercial bank lending rates (average of
18.95%) in East Africa. Kenya has an average lending rate of 12% and Primary Source of Initial Capital Among Pond Source of Future Capital Among Pond Farmers
Tanzania’s average lending rate is 16.74%. The Agricultural Credit Farmers
Facility (ACF) was established by the Government of Uganda (GOU) to
provide agricultural finance at a cheaper rate of 12% but most farmers Own capital 68%
are unaware of its activities. Own capital 71%
Family loan 9%
➢ Most farmers avoid bank loans and seek debt capital from other
avenues such as family (9%), money lenders (5%) and Village Lending Bank 9% Family loan 14%
and Saving Associations (VLSAs) (5%). This is because they have more
favourable interest rates and require less bureaucratic procedures in FAO and ADB 5% Money
getting loans. In general, aquaculture in East-Africa is financed through 7%
lenders
alternative channels than bank loans. Money lenders 5%
Uganda
➢ 21% of farmers prefer borrowing from other sources such as relatives VLSAs 7%
5% government…
(14%) and money lenders (7%) for their future production activities.

1. Bank of Uganda, 2021, Interest Rates


37 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
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38 2022 | Aquaculture Road Map Uganda


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Route to market

39 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

>67% of cage tilapia production is estimated to be sold in the large regional markets and export markets through traders.
Households buy Households/Individuals in Households also buy This route is accessed by
small quantities at the local community; fish from markets
big commercial cage
farm gate Institutions within the
community farmers who are members
Farmer of the Uganda Commercial
Fish Farmers Association.
There are about five big
Local traders buy at traders supplying to the
farm gate (buy in region, they have big
Fish mongers/Traders in
basins, baskets for Markets in the local community trucks of not less than
sale for that day) the local community
10MT

Auction markets
Urban and
typically held weekly
attract traders from other markets
Suppliers in distant
districts use local surrounding districts in surrounding
brokers to find out if districts
there are farmers DRC
who are ready to Locally based brokers
harvest

Suppliers/Ugandan Traders in Kenyan Clients –


Large scale farmers Busia Fish Market (Mainly
Busia Fish Market Only purchasing
that have harvested wholesale trade to Kenyan
consistently large Wholesale buyers tilapia
quantities typically
have relationships
with suppliers
About 7,835 -11,485 MT of fish supplied to the Busia market on an annual basis. 1
Suppliers who source from 70% of the fish supplied to the Busia market is farmed fish
districts practicing • Farmed Cage Fish (15 MT to 25 MT daily) -
aquaculture o They get about 5 vehicles transporting 3 to 5 MT of farmed fish
Route to DRC market • Fish from Ponds
Route to the local community o Only an estimated 2MT from ponds is supplied to the market monthly
• Capture Fish (6.4 MT daily)
Route to Kenya market o Trucks transporting 4MT from different landing sites
o Motorbikes transporting: 2.4 MT daily from different landing sites

Note1 : The 7k MT farmed cage fish exported mentioned on this slide is only the export going through
40 Busia market place. There are other export channels as well, such as direct export by the main farmers. 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Main cage farmers currently export most of their product, making them susceptible to border closures and other export restrictions
Main export routes of Ugandan fish, per importance Sales through main export
channel, in 2021 Remarks, export channels
market hubs, in MT, in
2020
➢ >67% of cage tilapia production is estimated to be sold in the large regional markets and export markets
through traders. Of this, 17% is exported directly, whereas 50% is sold to traders who mainly sell in
Maracha export markets such as Busia.
South Sudan
7.835 Pond ➢ Fish from Uganda is exported to DRC through the Bunagana border in Kisoro district. Only tilapia is
Major aquaculture exported through Bunagana. The Busia/Kenya export market has an average of 20 wholesale traders
districts 0.03% who supply farmed fish, especially tilapia. Supply of fish to DRC is dominated by five (5) big traders, who
Adjum
Major export
ani buy from cage farmers.
routes Wild
Minor export ➢ While it is generally uncommon for farmers to directly export, a few large-scale cage farmers utilize their
routes 30% existing assets to carry out export activities by themselves. Through cutting out the middlemen, Yalelo
enjoys larger margins on sales to customers in Kenya and DRC than most farmers that sell to exporters.
Zombo SON also has retail outlets in Kenya and exports approximately 80% of their fish to Kenya.
➢ Fish is also exported to DRC through Kasese, Zombo and Maracha as well as to South Sudan mainly
through the Elegu border in Adjumani district in Northern Uganda. Some fish also crosses to Kenya
DRC Kenya through Tororo in Eastern Uganda.
➢ The specific export market for farmers typically depends on the region in which the farm is located.
Farms close to Busia in Eastern Uganda export to Kenya while those in Western Uganda close to the
Tororo districts of Kisoro and Kasese export their fish to DRC.
Busia Cage ➢ Reportedly, 70% of the fish sold at the Busia market is sourced from fish farms, especially cage farms in
Buikwe, Wakiso and Jinja. Tilapia is the most sold fish species at the Busia market, mainly sold fresh
Kasese Total 70%
without any value addition.
Jinja 1.800 ➢ Agents typically receive orders from the buyers, buy the fish from wholesalers in the Busia market and
load it onto a truck for delivery in different Kenyan towns. They hardly meet with Kenyan clients and
Buikwe transactions are predominately done over mobile money. This is evidenced by the numerous mobile
money operators of both Uganda and Kenya at the market entrance. Before the COVID-19 lockdown, fish
Kisoro Wakiso Mukono
was transported to Kenya by use of bicycles.
➢ Trade to major cities in the DRC such as Goma also used to take place through Rwanda. However, the
Bunagana Busia border closure between Rwanda and Uganda meant that this trade had to redirected through Tanzania
or Bunagana.
(DRC) (Kenya)

41 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Pricing is considerably lower for pond farmers due to lower market pricing
Pricing along the value chain, in US$/kg1
Pond farming, domestic Cage farming, domestic Additional remarks, domestic sales
through traders through traders
➢ Farm gate pricing of catfish is cheaper than tilapia due to its
lower popularity. A kilogram of catfish at farm gate ranges
Maximum consumer price 2,70 2,70 between USD 1.49 to USD 2.57.
➢ Subsistence pond farmers sell their fish through auctions or
markets at their farms. Some of these small-scale pond
farmers (less than 2.5 MT) sell their fish at retail prices
Retailer margin high end 0,13 0,13 Local consumers buy fish at an average directly to the final consumers in their surrounding
price of USD 2.57 to USD 2.7. Consumers community, which is made possible by the low volumes sold.
prefer fish produced from cages because
its bigger and is perceived as tastier. This ➢ Due to the lower volumes, pond farmers have less
is one of the reasons that traders buy fish bargaining power in the market. Traders plan their routes
Retailer margin low end 0,14 0,14 from ponds at a significantly lower price depending on the quantities of fish they expect to get. They
than fish from cages. incur costs such as hiring trucks, buying ice based on the
In general, there has been an increase in estimated volume of harvest stated by the farmer. Pond
local consumption of farmed fish in farmers also often overestimate their production figures,
recent years. which makes traders incur losses due to already sunk costs
Distributor/trader margin 0,36 0,09 such as transportation. Cage farmers have more reliable
production estimates as well as larger volumes. This biases
traders to source most of their fish from cages over pond
Some distributors/traders access fish farmers.
through brokers. Traders prefer dealing
Broker margin 0,04 0,04 ➢ Large-scale farms like Yalelo and SON fish farm also
with brokers because they have more
reliable information on farmer harvest sell their fish directly at their own integrated retail outlets.
volumes especially for pond farmers. The fish is sold between USD 2.7 and USD 3.24 per kg in
these retail stores and sold as premium fresh quality fish.
Farm gate price 2,03 2,30

Note1 :Pricing on this slide represents farmers selling to traders. The sales price on page 22 represents sales
42 pricing of farmers with integrated sales outlets. Variation of pricing in integrated sales retail outlets is mainly
due to special promotions of main integrators (https://twitter.com/yalelouganda) 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Export traders also prefer to deal with larger cage farmers, since they can obtain significant volumes.

Pricing along the value chain, in US$ Additional remarks, export sales

➢ A trader for export deals with an average of 5 large-scale commercial farms, especially SON
Export to Kenya, through Export to Uganda, through fish farm, Pearl Aquatics, IG Invest fish farm and Yalelo.
Ugandan traders Ugandan traders ➢ Traders supplying Kenya source the fish mainly from cage farms at an average price of USD
2.3 per kg and sell it in the market to wholesalers (agents of Kenyan customers) at an average
price of USD 2.43 per kg. The Kenyan agents usually add USD 0.14 when selling to their
customers in Kenya.
➢ Supply of fish to DRC is dominated by five (5) big traders, who buy from cage farmers and sell
Total price in Kenya 2,57
within the DRC. Traders buy the fish at an average price of US$ 2.3 per kg from cage farmers
Total price in DRC 2,57
and sell it to Congolese wholesalers and retailers at an average price of US$ 2.57 per kg.
➢ The higher margin for traders serving the DRC covers costs incurred for the longer route.
Farms such as Yalelo also export directly to the DRC and sell there for US$ 2.57 per kg to
traders.
Kenyan agent margin 0,13 ➢ The limited number of large export traders grants them more market power than pond
farmers and small-scale cage farmers. Traders who export fish to DRC and Kenya prefer to
source their fish from cage farms. The ability to by-pass traders puts larger cage farmers in a
Trader margin range 0,27 much stronger negotiation position than smaller farmers.
➢ A key consequence of these market dynamics is that small-scale farmers do not get high
Trader margin 0,14 prices for their fish which they would be able to if they could access regional and export
markets directly, like the larger farmers.
➢ The influx of large-scale cage farmers who run larger operations and thus enjoy awards that
economies of scale give then the ability to sells at slightly lower prices as a strategy to increase
their market share. This reduces the available market for smaller cage farmers since rational
Farm gate price 2,30 traders will always prefer to buy at lower prices.
Farm gate price 2,30 ➢ Fish from cages is larger and perceived as tastier among final consumers. The popularity of
fish from cage farms, among traders and consumers, also reduces market power held by pond
farmers.

43 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Catfish pond farmers are not competitive in the regional and export market
due to limited demand and difficulties in production
➢ The Ugandan market is generally unfamiliar with the catfish which results in low demand
for catfish. As such, farmers do not have sufficient avenues to sell their catfish. However,
the Congolese market for catfish is a lot higher. Therefore, catfish sales to the export
market account for about 25% of catfish farmers’ sales.

➢ In the Northern and Eastern regions, farmers sell most of their catfish to the surrounding
communities. These regions are known to be traditionally fish eating regions and there is a
general shortage of fish in these areas.

➢ More than 60% of Catfish farmers sell their fish to the surrounding community at much
lower prices per kilogram than tilapia. This is due to various reasons including:

• The international market (DRC) prefers Catfish in smoked form, a practice most small-
scale farmers shy away from due to the associated costs of value addition.
Additionally, farmers don’t produce enough volumes to justify export.
• Catfish farmers are thus stuck with selling to surrounding communities who are
unfamiliar with the species. People prefer tilapia. Because of this, the fish fetches a
lower price.
• For export, catfish must grow into a larger sizes of over 1kg which makes the
prices/piece for catfish generally higher than those of tilapia. This has reduced the
demand for catfish in the local market where small affordable fish sizes are more
desirable. On the other hand, growing catfish to 1 kg leads to challenges for farmers.
• With limited local market, catfish farmers rely on fish traders and mongers who sell to
the major catfish markets such as DRC. As a result, returns are low for catfish farmers
resulting from an added transport costs and trader markup.

A mature catfish harvested at one of the visited catfish farms

44 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Central Kampala (2021) Image; Larive international

45 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Regional aquaculture position of Uganda

46 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Uganda boasting advantages on a regional market attractiveness and competitive landscape comparison

Remarks on regional position


Market status Dutch involvement

➢ Compared to its regional peers, Kenya and Tanzania, Uganda has many
more large cages installed, but fewer in total. This indicates concentration
Aquacult Industry
Aquacultur of farming within a number of capital-rich farmers, able to field the
ure structure Current Current
e sector necessary working capital for such large diameters.
sector – Raw engagemen engagemen
size
size involvement material t of Dutch t of Dutch ➢ In other words, compared to especially Kenya, Uganda has a number of
-
- of small to availability private governmen larger farms, but fewer individual farmers. The supporting system for
Future
Current medium sector t individual smaller business operators is also stronger in Kenya, with
outlook
size farmers multiple hatcheries selling fingerlings to third parties as well as multiple
feed producers.
➢ However, Uganda is currently leading aquaculture production in the region.
It also has the largest proportion of Lake Victoria. Compared to Kenya, it
Uganda also has a lot more growth potential, as suitable aquaculture sites are not
yet a limiting factor in growth.
➢ Aquaculture in Tanzania and Rwanda is still in its infancy stage. In Tanzania,
the business climate is the main barrier for growth, which is deemed to be
Kenya considerably better in Uganda by industry insiders. In Rwanda, the main
barrier is the lack of suitable water bodies with good water temperatures.
However, several large farms are starting operation in Rwanda, primarily
because of the good business climate.
Tanzania ➢ Regionally, aquaculture is a priority theme in the Dutch billateral
engagement. Regional collaboration between respective Embassies would
be highly encouraged, given the interlinkages of the aquaculture value
chain in the region. FoodTechAfrica is a great example of successful Dutch
Rwanda engagement.

47 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Average farms size in Uganda is largest, while the number of cages is greatest in Kenya

Average farm size in installed production capacity in m3 and total number of installed cages in # of cages, per country,
Observations, Size of farms
total number of cages / average farm size (standard deviation of the mean). 1

➢ Although Kenya, has the largest number of


Average farm size
installed cages of all three riparian countries to
3.000 Lake Victoria, these are primarily smaller in size.
Kenya ➢ Uganda has several of the largest farmers on
1.827 / 2.652 Tanzania Lake Victoria, and as such the average farms size
(5971.72) is also the highest among the three countries.
2.500 Uganda However, it also holds the largest differential
between small and large operators.
450 / 2.143
(2611.44) ➢ After the floods of Lake Victoria shores in 2019,
2.000 many operators left the industry in Uganda. This
has likely been a driver of the consolidation in the
Ugandan sector.
1.500 ➢ Tanzania opened Lake Victoria for cage farming in
3.379 / 1.377
the last few years, and as such the number of
(2646.92)
operators is relatively small. Insiders indicated
that it is particularly difficult to obtain the
1.000 required licenses in Tanzania. This forms a
significant barrier to entry, for small business
operators in particular.

500 ➢ Farm sizes is determined on the basis of installed


production capacity. However, many of the cages,
especially in are either understocked or
completely empty.
Total number of
0
installed cages
0 500 1.000 1.500 2.000 2.500 3.000 3.500

1Informationbased on satellite imagery and data prepared for the FAO census by Lattice Aqua (2021). Total
48 2022 | Aquaculture Road Map Uganda
number of installed cages likely to be an underreporting for Kenya.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

49 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Political economy analysis

50 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

The Political Economy Analysis shows the political feasibility and level of expectations for the development of any intervention in the
Aquaculture sector
Definition: Metric Description Risk Category Score Explanation
➢ Political economic risk encompasses political decisions or changes that can affect
The government is the main actor at the
conditions and profitability of actors along the market segments and the different This looks at how many High Risk 3
value chain stages.
stages of the value chain. Number of significant stakeholders are
and power of involved at each stage of the The value chain stages are supplied by both
➢ Such political decisions include decisions on taxes, currency valuation, trade Medium risk 2
significant value chain, from supply of the government and private entities.
tariffs/barriers, investment, wage levels, labor laws, environmental regulations, and stakeholders fingerlings and feed to fish
markets. There are several private actors at the value
development priorities. Low Risk 1
chain stages.
➢ Political risk assessment has been conducted based on market segments within the
Conflicts such as border and market
aquaculture value chain. High Risk 3 closures take more than six months to
• Surrounding community: This segment is supplied by small-scale pond farmers. resolve.
This covers how long it takes
• Local retail market: This segment is supplied by large-scale pond and small-scale Conflict Conflicts such as border and market
to resolve conflicts at the
cage farmers. This includes food markets in towns and cities. resolution
value chain stages.
Medium risk 2 closures take between 1 – 6 months to
resolve.
• Urban retail market: This covers large-scale cage farmers who own retail outlets.
Urban retail market covers supermarkets as well as retail outlets owned by large- Conflicts such as border and market closure
Low Risk 1
are resolved in less than one month.
scale cage farms such as SON and Yalelo.
• Regional export market: This is served by large–scale cage farmers and wild Required licenses are extremely difficult to
High Risk 3
obtain.
capture fisheries. The regional export market includes neighboring countries such This assesses the ease with
as Kenya and DRC. Ease of entry
which actors along the value
Medium risk 2
Some licenses are required for actors
chain and market segments looking to enter the value chain stage.
Methodology: can get into operation.
There are few to no licenses required to
➢ The severity of political risk in the aquaculture value chain in Uganda has been defined Low Risk 1
operate.
based on four (4) key metrics:
Value chain actors are barred from gaining
• Number of significant stakeholders. Market access covers how High Risk 3
access to the market.
• Conflict resolution. easy it is for actors along the
Market access different market segments to Some restrictions in form of licenses are
• Ease of entry. Medium risk 2
access respective markets to required to gain access to markets.
sell their fish.
• Market access. Low Risk 1 There are no barriers to market access.

Note: Where the score for number of significant actors/conflict resolution score = 3,
51 the segment is deemed high risk since these are terminal risks. 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

High political risk is experienced in the surrounding community market segment as the main producers of this segment (small-scale
pond farmers) rely on the government for fingerlings and feed.
Key Low Risk: Medium Risk: High Risk:

➢ Number of significant actors score = 1


➢ Conflict resolution score = 1
➢ Number of significant actors score = 1 ➢ Number of significant actors score = 1 ➢ Ease of entry score = 1
➢ Number of significant actors score = 1
Regional Export ➢ Conflict resolution score = 1 ➢ Conflict resolution score = 1 ➢ Market access score = 1
➢ Conflict resolution score = 1
market ➢ Ease of entry score = 1 ➢ Ease of entry score = 1
➢ Ease of entry score = 1
(large-scale cage Large-scale cage farmers such as Yalelo and SON export their fish directly to regional
farmers, wild Large-scale cage farmers import their feed Production is in large-scale cages set up markets such as Kenya and DRC.
Large scale cage farmers run their own private
capture fisheries) directly from country such as Brazil and around major water bodies such as Lake
hatcheries for own consumption.
Zambia. Victoria and Lake Albert. In 2020, Kenya accounted for 93% of Uganda’s fresh fish and 1% of fillet exports
whereas DRC accounted for 7% of Ugandan fresh fish and 4% of fish fillet.1

➢ Number of significant actors score = 1


➢ Conflict resolution score = 1
Urban retail
➢ Ease of entry score = 1
markets ➢ Same as above ➢ Same as above
➢ Same as above ➢ Market access score = 1
(large-scale cage
End market

farmers)
Large players such as SON and Yalelo sell fish in own retail outlets

➢ Number of significant actors score = 1


➢ Number of significant actors score = 1 ➢ Number of significant actors score = 1 ➢ Number of significant actors score = 1
Local retail ➢ Conflict resolution score = 1
➢ Conflict resolution score = 1 ➢ Conflict resolution score = 1 ➢ Conflict resolution score = 1
markets ➢ Ease of entry score = 2
➢ Ease of entry score = 1 ➢ Ease of entry score = 1 ➢ Ease of entry score = 1
(small-scale cage ➢ Market access score = 2
and large-scale
Fingerlings are supplied by private large-scale Farmers buy commercial feed from Production is in large scale earthen ponds and
pond farmers) Fish movement permits are required for all farmed fish being taken to local retail
hatcheries. distribution outlets countrywide. small-scale cages.
markets.
➢ Number of significant actors score = 3
➢ Number of significant actors score = 3 ➢ Number of significant actors score = 1
➢ Conflict resolution score = 1 ➢ Number of significant actors score = 1
Surrounding ➢ Conflict resolution score = 1 ➢ Conflict resolution score = 1
➢ Ease of entry score = 1 ➢ Conflict resolution score = 1
community ➢ Ease of entry score = 1 ➢ Ease of entry score = 1
➢ Ease of entry score = 1
(small-scale pond ➢ Market access score = 1
The government under Operation Wealth
farmers) The government is the main supplier of
Creation (OWC) supplies starter feed to Production is in unaerated earthen ponds.
fingerlings to small-scale farmers. Market is within the surrounding communities where anyone can sell fish.
farmers for the initial 3 months.
Fingerlings Feed Production Market

Stage of the Value Chain


Note: Where the score for number of significant actors/conflict resolution score = 3, the
52 segment is deemed high risk since these are terminal risks. 1Number of small-scale cage 2022 | Aquaculture Road Map Uganda
farmers has not been established.
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

The risks in the aquaculture sector are less significant in the urban retail and export market segments.
Key Low Risk: Medium Risk: High Risk:

Direct feed imports to own warehouses. Production is conducted in cages. Production


licenses are required.
Large-scale cage farmers import feed at USD Uganda reaps the benefits of EAC’s common market protocol as the
910 per MT. The price has risen from USD 710 Government policy might change necessitating second regional integration milestone. This covers free movement of
Regional Export
per MT due to the supply chain disruptions the need to limit coverage on lake space as goods, persons, services, capital and labor across member states. This
market
Large-scale cage farmers run hatcheries for own caused by the COVID-19 pandemic. well as mandatory environmental impact paves way to set up production in Uganda and target regional markets.
(large-scale cage
production. Farmers buy in bulk and face the risks of assessments.
farmers, wild
shipping container shortage and delays in Underlying politics within different member states means that free
capture fisheries)
freight times. Global shortages in freight imply Recent government focus on curbing wild movement of goods is sometimes impeded. This has however not
that farmers get their feed after a significant capture has capability to have spill-over effects been experienced in fish exports.
time of about 4 months after making full since wild catch and cage farming share the
payment for the feed. same lakes.

Urban retail
markets Large players such as SON and Yalelo sell fish in own retail outlets.
As illustrated above As illustrated above As illustrated above
End market

(large-scale cage These are free of any political risk.


farmers)
Local retail
Quality fingerlings are bought from large hatcheries Fish sold in local markets is mainly sourced
markets Commercial feed purchased from retail outlets Only a few large-scale pond farmers can produce enough quantities to
such as Rocksprings fish farm. This presents a risk from large-scale pond farms as well as small-
(small-scale cage is used. Farmers reported limited availability of attract traders that can buy in bulk and take to local markets. They also
of increased costs such as transportation and scale cage farms. Their production volumes
and large-scale feed in retail outlets during certain periods. mainly deal with traders who often offer less prices for the fish.
inconsistency in supply. are not always consistent.
pond farmers)

Small-scale farmers rely on government initiatives When the free government feed is used up, Production is predominantly done by small-
Surrounding
for supply of fingerlings and feed. This model by small-scale farmers use alternative feed means scale pond farmers using non-aerated
community Limited risk since most people are gradually increasing their fish
government has created a dependency syndrome such as direct application of feed ingredients earthen ponds. This points to low farmer
(small-scale pond consumption.
and is unsustainable in the long-run incase like maize bran to the ponds and fertilizing the professionalism and results in low
farmers)
government changes policy. ponds with chicken droppings. productivity.

Fingerlings Feed Production Market

Stage of the Value Chain


Note: 1Number of small-scale cage farmers has not been established.
53 2022 | Aquaculture Road Map Uganda
Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Central Kamapala (2021) Image: Larive international

54 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Enabling Environment

55 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Public stakeholders in the aquaculture value chain


LVFO NEMA
Manage all fisheries

Ministry of Trade, Industry & Cooperatives


Protects Uganda’s water
MAAIF resources in the EAC bodies A great deal of low
region quality locally produced
Agency in charge of Directorate in charge of fish feed
OWC
agricultural research aquaculture sector
Enforcing quality
standards of fingerlings, UNBS
NARO DFR Supplies fingerlings and feed and processed fish
feed to farmers
Research in the

Production

Processing

Marketing
aquaculture sector Manage all fisheries
resources in Uganda Capturing foreign
markets
UEPB
NAFIRRI

Guiding and provision of


Skilling and research in investor incentives
UIA
FTI aquaculture
Fisheries associations Aquaculture insurance
Complaints about the
MUK lengthy process of
getting insurance
UCFFA AFALU UFPEA AIC

AFALU: Association OF Fishers and Lake Users MAAIF: Ministry of Agriculture, Animal Industry and NEMA: National Environment Management UFPEA: Uganda Fish Processors and Exporters
of Uganda Fisheries Authority Association
AIC: Agro Consortium MUK: Makerere University Kampala OWC: Operation Wealth Creation UNBS: Uganda National Bureau of Standards
DFR: Directorate of Fisheries Resources NAFIRRI: National Fisheries Resources Research UCFFA: Uganda Commercial Fish Farmers’
FTI: Fisheries Training Institute Institute Association
LVFO: Lake Victoria Fisheries Organization NARO: National Agriculture Research Organization UEPB: Uganda Export Promotion Board

56 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Laws governing the aquaculture sector

2005 National Agricultural Research Act, 2005 2010 Fish Act, 2010 2020
Fisheries and Aquaculture Bill, 2020
➢ Aquaculture research is regulated by the ➢ All fishing activities in Uganda are regulated ➢ The Fisheries and Aquaculture Bill is still under
National Agricultural Research System Act by the Fish Act which replaced the Fish and review and proposes the need for value
of 2005, which disrupted the monopoly of Crocodiles Act. It provides the basic addition on fish exports. Large commercial
public agriculture research by public framework for the production, processing cage farmers have expressed concern that
institutions. and marketing of fish in the country. this could hamper the regional market in
➢ This has opened research opportunities to ➢ It also has strict penalties against illegal Kenya and DRC that remains the main
other interested agencies and individuals fishing practices of imprisonment of up to destination of our farmed fish. The regional
through competitive research grants. ten years or fine of up to UGX 200 Million. market has so far showed preference for fresh
fish.

Land (Amendment) Act, 2010 National Environment Act, 2019


➢ The Land Act spells out the tenure systems for ➢ The National Environment Act of 2019 states that mandatory
landownership and the legal rights of environmental and social impact assessments are required before
landowners. The act also defines the the establishment of aquaculture parks and construction of facilities
ownership of wetlands, swamps and other for commercial aquaculture of 200,000 kilos per year or of an area of
shallow waters. one hectare.
➢ The process of acquiring land for aquaculture ➢ NEMA, the enforcing body of the Act restricts aquaculture to a
purposes is simple with limited complexities. distance of 200 m from the shoreline of a wetland and the installation
2010 2019
of any water obstruction system to supply the river-fed ponds.

57 2022 | Aquaculture Road Map Uganda


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environment interventions

Fisheries and aquaculture Bill, 2020 Other government initiatives towards aquaculture
➢ The aquaculture and the Fisheries and Aquaculture Bill looks to update the regulations ➢ The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF): Directorate of Fisheries
within the sector that were last updated in the 60s. The bill is on floor in the Parliament and Resources is setting up a one-stop-center to assist investors looking to invest in all stages
is looking to pass. of the aquaculture value chain. This is envisioned to be operational within two years and
will look to streamline the application process that investors take to setup.
➢ The Bill focuses on value addition at different stages not just filleting. These include among
others, gutting, removing scales which will increase the shelf life of the fish and packaging. ➢ A digital marketing platform has also been designed that will help farmers sell their fish.
Value addition is supposed to result into the increased shelf life of fish enabling it to reach This is currently under review and will be active in 2022. The marketing platform will enable
more markets. fish farmers to access a wider market for their fish bridging the gap between farmers,
traders and consumers. The need for the digital marketing platform has arisen out of the
bottleneck of farmers reaching the market. Large and fairly new players such as Yalelo have
The Genetic Engineering Regulatory (GMO) Bill managed to come in and in a short time capture a large share of the market, something
local players have not taken advantage of.
➢ The GMO bill is facing some delays because the Government is taking a precautionary
approach, that is to say, is seeking to first study the long-term impacts of such inventions. It ➢ The government is working with PESCA on developing Aquaculture parks whose
was mentioned that current investors such as Yalelo have commended the quality of the infrastructure construction will be completed in 2022. These will include land and water-
indigenous Tilapia. based parks.

➢ The president has of recent expressed the need for the GMO bill to be passed. This will ▪ Water-based aqua park in Kalangala district
pave way for new and improved breeds of fish to be farmed within the country.1 ▪ Land-based aqua park based in Apac districts which lies on the shores of river Nile.
➢ The GMO bill also paves way for improved varieties of plant protein sources such a
soybean to be grown in the country. This will increase the availability of raw materials ➢ The aqua parks will have large scale and small ponds, a large fish aggregator to whom
needed as inputs to prospective domestic fish feed producers. farmers can sell, a feed storage facility, a seed distribution center. The park will be
surrounded by a network of out growers.

➢ The government is also running a Wetland restoration program by setting up five (5) ponds
in wetlands of 24 districts. Farmers will be able to rent out the ponds for production under
a Public-Private-Partnership (PPP).

1) Bendana C,. Ugandan President wants GMO bill passed – accessed at https://allianceforscience.cornell.edu/blog/2020/03/ugandan-president-wants-gmo-bill-passed/
58 2022 | Aquaculture Road Map Uganda
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Fresh fish that has been brought to Busia main market

Further growth of cage farming could be constrained by policy

The Fisheries and Aquaculture Bill 2020


➢ Among the main highlights of the bill is value addition of exported fish from Uganda. This is
however likely to negatively impact the aquaculture sector.

• Most (70% to 80%) of Ugandan fish is exported to regional markets (Majority of this
lands in Kenya and DRC). This market prefers fresh fish. Value addition whether in the
form of fish fillets or other products could potentially cause loss of key market for
commercial farmers.
• Value addition is costly. With value addition comes an increase in costs such as labor,
packaging, among others. Commercial farmers believe their earnings wouldn’t
increase from processing fish into fillet and other products. If anything, it will just
increase their operating costs and reduce their margins.
➢ The implications of the Aquaculture Bill 2020 on exports cannot be fully predicted. There is
a perception from the government that the law allows any manner of value addition such
as removing scales, intestines, packaging, among others.
➢ However, interviewed private sector players have expressed concern on the ramifications
of the Bill on the sector especially the export market. While experts state that in case the
bill passes, the implementation and ensuing effects would be immediate, present history in
Uganda points to limited or delayed implementation of regulations, leading to lower
impact.

➢ The differing requirements of value addition such as removal of intestines, removal of


scales, packaging, etc implies that exporting farms and traders will initially face reductions
in export volumes as they cope with the new regulations and value-addition expenses, but
exports should recover after this period since regional demand is still high.

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Taxes, duties and subsidies

Taxes Tax incentives


All taxes in Uganda are collected by the Uganda Revenue Authority (URA) and they include: General incentives

➢ Income Tax. This is paid by individuals engaged in the aquaculture sector. It ranges from ➢ There are income tax and local excise duty exemptions for investors whose investment
10% to 30% depending on the income received. capital is at least USD 10 million for a foreign investor or USD 300,000 for a citizen or USD
150,000 for a citizen investing upcountry. 70% of the employees in these companies must
➢ Non-Individual Income Tax (Corporation Tax). This is imposed on all corporate entities be Ugandan citizens who are earning an aggregate wage of 70% of the total wage bill.
(Companies) engaging in commercial farming activities and is charged at a rate of 30% on
the profits from the business. ➢ Producers who export 80% and above of their products also enjoy income tax exemptions
for ten years.
➢ Value Added Tax (VAT). It is a tax on consumption charged on value-added to “taxable”
goods and services, at different stages in the chain of distribution and is charged at a rate ➢ Import duty is NIL for plant and machinery; Import VAT is deferred and WHT is 6% as long
of 18%. A seller registered for VAT can claim their input tax when selling the product. as the cost of plant and machinery is above USD 22,500.

➢ Pay As You Earn (PAYE). Paid by all entities who have employees that are paid a monthly Specific to the aquaculture sector
salary of UGX 235,000 and above. PAYE ranges from 10% to 30% of the total paid salary for
both citizens and non-citizens. ➢ Aquaculture inputs such as feed and fingerlings being imported directly by a farmer are
exempt from all taxes. This exemption however is not extended to non-farmers for whom
➢ Customs duty. Is charged on all imported goods into the country. All foreign goods are taxes are charged upon import. This has made imported fish feeds cheaper and more
charged a combined tax of 33% and an infrastructure tax of 1.5%. attractive than locally produced feeds for large scale farms and provides them with a
distinct tax advantage over smaller farmers whom have to purchase from non-farmer feed
➢ Local Excise duty. Is charged on all locally produced goods. importers.
➢ Withholding Tax (WHT). This is a tax withheld at source at the point of making a payment to ➢ Uganda being a member of the East African Community (EAC) enjoys tax exemptions for
the supplier/service provider. Gazetted taxpayers under section 119 are required to fish crossing from/to EAC member states. Consequently, all fish (fresh, chilled or frozen)
withhold tax of 6% on any payments for supplies above UGX 1,000,0000 as well as 6% on caught and landed by canoes or vessels registered and based in an EAC state is exempt
the supply of raw materials. from all taxes.
➢ Rental Tax. In cases where a farmer has rental properties and earns rental income or they
lease out their farms or equipment, this income is taxable under section 5 of the Income
Tax Act.

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Most of the tariffs aren’t implemented on-ground in order to encourage aquaculture


Table showing licenses required for aquaculture in Uganda
➢ In the pond farming segment, most of the tariffs and licenses are not being
Type License Fee Pond farmer Cage farmer Processor implemented in a bid to promote aquaculture and reduce expenditure on pond
(USD) farmers who are already experiencing reduced margins. The licenses include:

Trucks Less than 5 MT 67.6 • Production licenses.


carrying fish • Wetland permits.
5-10 MT 135.1
by tonnage
Over 10MT 202.7 ➢ In cage farming, only large scale investors have been able to carry out
environmental impact assessments. The government has however expressed the
Containerize Less than 5 MT 67.6 need to review policy especially as regards cage farming in order to ensure
d vessels by sustainability of the lake resources. Some of the highlighted adjustments include:
5-10 MT 135.1
tonnage
Over 10 MT 202.7 • Limitations on how much lake space a given cage farmer should utilise given
their licenses.
By products and processed fish 135.1
(dried/smoked) transporters • Conducting a general environmental impact assessment on all cage farming
activities on the lake. EIA are currently being done by individual cage
Trading license per farm cycle (Pond farming) 99 √ farmers.
Market dues per farm cycle (Pond farming) 12 √ • Ensuring sustainable coexistence of other players on the lake such as local
Artisanal processors/fish mongers 13.5 √ fishermen.
➢ To start cage farming, one needs to have a production license granting them
Fish processing control fee for processing 810.8 √
permission to practice aquaculture on a given part of a water body such as a lake.
factories
The interviewed farmers stated that these licenses are fairly easy to get.
Production license √
➢ In practice, the Department of aquaculture - MAAIF and the District Fisheries
Boat builder/local gear makers/repairers 13.5 √ Officers (DFOs) have a final say on which licences and tariffs are implemented.
Fish control permit (to allow access to fishing) 6.8 √ √
➢ From our interaction with MAAIF, even import waivers are issued on a case-by-
Fish movement permit (per kg) 0.003 √ √ case basis. A prospective investor applies for the waiver and the Ministry reviews
and chooses whether to grant the waiver or not."
Application fees 2.7 √ √

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The country is pushing an industrialisation strategy under NDP III

➢ Starting business in Uganda is a fairly straightforward affair with a one-stop business centre
(OSC) set up by the Uganda Investment Authority (UIA) in this regard. The OSC provides
among others the following services.
▪ UIA Licensing Office: This office receives applications for an investment license as well
as guidance on the different requirements regarding regulatory approvals.
▪ Uganda Registration Services Bureau (URSB) Office: URSB oversees registration of
both local and foreign companies, business names, and legal documents. It also
provides advisory services on company registration.
▪ Uganda Revenue Authority (URA) Office: Through the URA office, a business can
obtain a Tax Identification Certificate (TIN). The office also provides guidance on the
Ugandan tax structures, available tax incentives and tax advisory services.
▪ Uganda Bureau of Standards (UNBS) Office: UNBS oversees formulating, promoting
and enforcing national product standards on the market.
▪ National Environmental Management Authority (NEMA) office: In Uganda, NEMA is in
charge of regulating and coordinating environmental impact and mitigation
compliance.
➢ UIA has introduced an online one-stop-centre (eBIZ) for business registration that enables
investors from anywhere in the world access the same services offered by the physical
OSC.

➢ The Ugandan government’s recent push for industrialisation has seen the rise of industrial
parks. In the Kampala region, there are three government-owned industrial parks, these
include Kampala Industrial and Business Park (KIBP), Namanve, Luzira Industrial and
Bweyogerere Industrial Parks. The industrial parks are run by the Uganda Investment
Authority with the licensing office at the one-stop centre available to guide investors on
how to acquire land within the industrial parks.

Namanve Industrial Park in Kampala and Jinja

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Name Description Activities Ability for collaboration.


Operation Aims to alleviate poverty by This has been one of the major drivers of new entrants into the pond sector. The initiative has, on Operation Wealth Creation could provide
Wealth Creation encouraging pond farming. the other hand, been held back by limited ability of the farmers to sustain feeding once the opportunities for Dutch businesses active in the
Provides farmers with distributed starter feed runs out and is contributing to donor dependency in the sector. country to supply high quality inputs. This is also
fingerlings and starter feed true for any possible investments in hatcheries.
for a period of 2-3 months.
UNDP Aims to restore and The Building Resilient Communities, Wetlands Ecosystems and Associated Catchments in Uganda Dutch expertise, both in wetland restoration as
restauration - sustainably manage project aims to support the Government of Uganda in the management of critical wetlands that well as pond aquaculture could be of great
United Nations wetlands and support target are being affected by climate change. Some of the program’s current activities include: value to this program.
Development communities in wetland Training programs could include farmers in
Program (UNDP), areas of Uganda to reduce ➢ Restoration of wetlands and their eco-system services, in an effort to reduce the wetland areas, to focus efforts and increase
Green Climate the risks of climate change increasing pressures on wetlands by encouraging alternative livelihoods, resilient impact.
Fund (GCF) posed to agricultural-based agricultural practices and sustainable land management practices like reforestation. Some
livelihoods. of these alternative livelihoods and resilient agricultural practices include pond farming.
➢ Enhancing the skills of people living in wetlands to diversify their livelihoods and become
more resilient to climate shocks while reducing their exploitation of wetlands.

PESCA – Aims to increase fish ➢ PESCA is helping fish farmers across the country set up cooperatives. The goal is to Dutch expertise can greatly contribute to setting
The Nature production and profitability organize farmers into groups which can easily lobby for financing and access to quality up the aquaculture parks. These parks also offer
Conservancy, through cage aquaculture inputs. opportunities for investors. Engagement of the
European with minimal impacts on the ➢ Establishment of two aquaculture parks in Uganda, with construction expected to be Dutch Embassy could be in line with these
Development aquatic environment and completed in 2022. 1) Mwena aquaculture park is a cage-based aquaculture park being aquaparks, for example with a technical support
Fund other lake uses. established in Kalangala, with a projected annual capacity of 20,000 MT. 2) The land-based collaboration on setting up a good hatchery.
aquaculture park is being established in Apac district in Northern Uganda.
EU TRUE-FISH Aims to contribute to the ➢ The LVFO will implement the first component and strengthen commercial networks for Dutch aquaculture expertise already plays a
Program - development of competitive aquaculture-related businesses. crucial role in this program, through the
European competitive, gender ➢ FAO will concentrate on improving skills through vocational training centers in the Uganda, involvement of Dutch aquaculture experts as
Development equitable and sustainable Kenya and Tanzania. FAO will also foster sustainability of monitoring and surveillance of technical advisors. Given the expertise and
Fund, LVFO, aquaculture, by addressing aquatic animal health conditions, and institute zoning, particularly for cage culture in Lake practicality of the Netherlands in aquaculture
WorldFish, FAO impediments to growth in Victoria. vocational education, partnerships would be
aquaculture faced by ➢ WorldFish will implement the third component, improving the protection of biodiversity. very beneficial to long-term curriculum and
investors. education development.

63 Note: Detailed profiles of development programs can be found in the Annex 2022 | Aquaculture Road Map Uganda
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Executive summary Overview Sector overview Feed Breeding Farming Route to market
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64 2022 | Aquaculture Road Map Uganda


Enabling Possible value chain
Executive summary
Executive Summary Overview Sector overview Feed
Market size Breeding Farming Route to market
environment interventions

Possible value chain interventions

65 2022 | Aquaculture Road Map Uganda


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Introduction

The aquaculture sector is rapidly growing and commercializing. Throughout this study, several The following key development opportunities, in list of declining strategic priority, are
key challenges, trends and opportunities have been identified. The following section will set proposed:
out a key number of development opportunities, considering the strengths of the Dutch
private sector and the priority themes of the EKN in Kampala. 1. Investment in domestic feed production;
2. Supporting the entire value chain through investments in raw materials;
Although the impact and effectiveness of these interventions is greatest when applied through
an integrated approach, many can also be implemented independently. In the broadest sense, 3. Improving access to quality fingerlings;
the proposed interventions contribute towards: 4. Improving technical capacity along the value chain;

o Increased Food and Nutrition Security (FNS) through more resilient Food Systems. 5. Development of the domestic consumer market.

o Increased Dutch-Ugandan investments and trade that is socially and environmentally 6. Improve financing options for small to medium farmers;
responsible and contributing to inclusive growth. 7. Formation of farmers’ associations and other unifying bodies;
To facilitate the implementation of these interventions, Dutch and Ugandan parties have been 8. Ensuring regulation is properly implemented;
proposed. It also proposes RVO instruments where relevant for parties seeking support.

66 2022 | Aquaculture Road Map Uganda


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Potential implementing De Heus, Trouw Nutrition, ForFarmers, AgriFirm.


partners NL

Potential implementing Ugandan private sector.


partners UG
Feed is currently the biggest bottleneck among farmers. Suggested support tools SDGP, FMO.

Challenge: Scarcity of quality, affordable feed Opportunities: Investment in feed production


➢ Feed is the largest constraint limiting the growth and development of the aquaculture ➢ There is a clear opportunity for the start of aquafeed production in Uganda. The market
sector. Compared to other livestock sectors, fish feeds are relatively more difficult to is growing, and predominantly geared towards floating fish feeds. Any entrant would now
produce and commercial fish feed production in especially cages is nearly not possible with benefit from first mover advantages.
complete feeds.
➢ A local feed manufacturer is critical to further democratic sector development, allowing
➢ Farmers are sensitive to the quality of feed they give their fish. However, farmers reported also smaller farmers to access affordable feeds and prosper.
difficulty in accessing quality feed during their production cycles.
➢ As Uganda has a high domestic production of maize and thus relatively low maize prices,
➢ The feed available on the market is expensive and is the largest contributor to both cage it is well-positioned to become a regional leader in feed production and the investor
and pond farmers’ costs. Feed contributes 36 – 79% of the total production costs in could capitalize on further regional growth.
aquaculture. As a result, many farmers use on-farm produced feed or cheaper and lower
quality locally produced feed. ➢ To lower risk, a multi-species feed plant can be considered, including for example poultry
feeds. This is another fast-growing livestock sector in Uganda.
➢ Domestic feed producers quote the high expenses incurred in sourcing the feed
ingredients such as plant protein, animal protein and non-protein inputs like maize as the ➢ To increase the likelihood of an investor establishing production in Uganda and being
key drivers of their costs. Local feed producers end up charging high prices for their feed successful, the EKN should consider engaging in three other opportunities mentioned in
or compromising on the quality of feed in order to charge more competitive prices. this Road Map:

➢ The other challenge is the high adulteration of feed ingredients such as silver fish (mukene) 1. Invest in the development of the supply chain, to lower costs of raw materials and
which is mixed with sand to increase its weight. Most Ugandan feed input producers such improve their quality;
as soybean producers also can’t guarantee stable, consistent supply throughout the year. 2. Invest in skills of farmers and technical support to grow the customer base;
This leads to price fluctuations especially in times of scarcity. 3. Support local fingerling production, possibly through promoting a partnership
➢ Despite the high prices, the general market is skewed towards internationally produced between feed manufacturer and existing hatcheries.
feed, whose quality is more guaranteed than locally produced feed.

67 2022 | Aquaculture Road Map Uganda


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Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Potential implementing RijkZwaan, Delphy, East West Seeds, Heineken, De


partners NL Heus, Trouw Nutrition, ForFarmers, AgriFirm.

Potential implementing Ugandan financial sector, ACF & aBi, Proteen


Lack of consistent quality feed inputs increases production costs. partners UG

Suggested support tools SDGP, Impact Cluster, EKN delegated funds

Challenge: Lack of available quality raw materials Opportunities: Investments in raw material production
➢ Domestic feed producers quote the high expenses incurred in sourcing the feed ➢ For a feed producer to be successful, there is a need for quality raw materials available on
ingredients such as plant protein, animal protein and non-protein inputs like maize as the the Ugandan market. This will also significantly reduce cost of feed and thus cost of
key drivers of their costs. Local feed producers end up charging high prices for their feed production, as key ingredients no longer need to be imported.
or compromising on the quality of feed in order to charge more competitive prices.
➢ Feed producers can consider supply chain investments and linkage to secure supply of the
➢ The biggest challenge with producing feed is sourcing high quality ingredients at
feed inputs. This can be through relationships where the producers of plant or alternative
competitive prices. Due to a lack of locally available quality ingredients, some local feed
proteins can be supported. Such a relationship will also allow for guaranteed offtake of
producers import their ingredients such as their protein.
quality products for producers of raw feed materials.
➢ The other challenge is the high adulteration of feed ingredients such as silver fish (mukene)
➢ Given the high risk and size of this investment, this would be a great opportunity for
which is mixed with sand to increase its weight. Most Ugandan feed input producers such
project-based support from development partners, given the high impact on Ugandan food
as soybean producers also can’t guarantee stable, consistent supply throughout the year.
security and private sector development. This would incentivize international fish feed
This leads to price fluctuations especially in times of scarcity.
producers to start production in Uganda, while improving livelihoods of many farmers of
soy or alternative protein ingredients.

➢ The Netherlands has great expertise in improving agricultural production, and similar
collaborations supported by the Dutch government have been highly successful in other
countries such as Myanmar.

68 2022 | Aquaculture Road Map Uganda


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Executive summary Overview Sector overview Feed Breeding Farming Route to market
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Potential implementing Main Dutch aquaculture stakeholders already active in
partners NL Uganda, such as Trouw Nutrition or Koudijs

Potential implementing Ugandan Private Sector


partners UG
There is need for more commercial hatcheries across all the regions in Uganda
Suggested support tools Impact Cluster, SDGP, EKN dedicated funds

Challenge: Scarcity of quality fingerlings Opportunities: Improving access to quality fingerlings


➢ There are a few large-scale commercial hatcheries in Uganda. Many of the large-scale ➢ Establishing large-scale hatcheries in the different regions to serve farmers. This would save
hatcheries produce fingerlings for their own consumption at their farms such as SON fish farmers transport and logistic costs incurred in getting fingerlings from more distant
farm and Yalelo. districts. These hatcheries can be government-run, or preferably, through private sector
investment. Feed producers can also partner with hatcheries to provide a package deal to
➢ Farmers complain about having no access to quality tilapia and catfish fingerlings. Some farmers.
hatcheries do not disclose the true type of fingerlings they provide. Technical results are
better in fish farming when working with monosex fingerlings. However, many farmers ➢ Establishing hatcheries that produce fingerlings of other species such as catfish. Uganda
reported obtaining fingerlings which were labelled as monosex but later started has many tilapia hatcheries and very few hatcheries that produce fingerlings of other
reproducing in the fish ponds. species.

➢ There are very few catfish hatcheries in Uganda. Catfish farmers incur high costs in ➢ Partner with established farms to operationalize existing infrastructure or set-up (new)
accessing fingerlings. As a result, many catfish farmers try to produce their own fingerlings infrastructure. Multiple major fish farms either have existing hatchery infrastructure not
The fingerling quality and production is poor by the limited technical knowledge of the currently in use, as well as ambitions to supply third-parties with their newly to be
farmers. constructed hatcheries.

➢ Rocksprings fish farm is one of the largest tilapia hatcheries and is located in Tororo, ➢ Offer capacity building. Hatcheries need to be trained on the processes involved in the
Eastern Uganda. Farmers travel from as far as Mbarara and Bushenyi (more than 500 km breeding of fingerlings and farmers on the care of fingerlings upon arrival. This will lead to
away) to access fingerlings from Rocksprings. high quality fingerlings being more available to most farmers and their surrounding
communities. It will also lead to better success rates in the production of monosex
➢ As a result, subsistence farmers depend on their Fisheries Officers and Government fingerlings,
programs like Operation Wealth Creation (OWC) to get access to fingerlings. Some of these
dispatched fingerlings never arrive as promised. For example, in Luweero, 6,000 fingerlings
were sent by the Operation Wealth Creation but the consignment that arrived only had 900
fingerlings.

69 2022 | Aquaculture Road Map Uganda


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Executive summary Overview Sector overview Feed Breeding Farming Route to market
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Potential implementing WUR, Van Hall Larenstein, Zone.College, DAE, main Dutch
partners NL aquaculture stakeholders already active in-country

Potential implementing NARO, NAFIRRI, Fisheries Training Institute


partners UG
Limited technical know-how is deep rooted across the aquaculture value chain Suggested support tools Orange Knowledge Programme, Impact Cluster, YEP, EKN
delegated funds, K2K programs.

Challenge: Limited technical knowledge Opportunities: Training programs for farmers and
➢ There are technical knowledge gaps across the entire aquaculture value chain mainly teachers
affecting hatchery operators, feed producers and farmers.
➢ Most farmers reported learning about fishing either from a previous farm or learning ➢ There is a clear need to increase the technical capacity of the entire value chain, from feed
during their activities on the farm. Few farmers underwent any formal training related to producers, hatchery operators, traders to the farmers. This will significantly improve their
agriculture or specifically aquaculture. production efficiency, profitability and sustainability.
➢ Farmers lack the knowledge and skills required in preparing ponds, managing ponds and ➢ This training needs be practical in nature, and shown in a real world setting. This can be
cages, how often to feed their fish, among others. achieved at demonstration fish farms, serving as practical locations, or at practical training
➢ The low levels of professionalism among most farmers can also be attributed to limited locations such as the Aquaculture Academy (Kenya).
technical knowledge. Some farmers lack practices such as record keeping, biosecurity and
water quality testing because they don’t understand the implications these activities can ➢ With a rapidly digitizing country, leveraging digital tools can increase the reach and spread
have on their production. of information throughout the country. Initiatives for such a digital learning environment
have been started by FoodTechAfrica, but this can be expanded and promoted broadly.
➢ Farmers heavily rely on technical assistance from Local Government fisheries officers and
extension workers. The challenge with this is the limited number of extension workers who ➢ Smaller farmers can be organized into associations and cooperatives for easier training and
can’t effectively serve all farmers. capacity building. Through these groups, farmers should be educated on the importance of
➢ Some farmers try and mix their own farm feed or take ingredients and a formula to local record keeping, biosecurity, water quality testing, among others. Additionally, equipment
feed millers to mix feed for them. However, they are uncertain of what quantities of like water quality testing equipment can be shared among cooperative members since it
ingredients to add to their locally mixed feed. Some may add more ingredients such as could be costly for each farmer to own one independently.
silver fish (mukene) in order to increase the protein content, but this can have adverse
➢ Moreover, collaboration could be set-up between Ugandan and Dutch education institutes
effects on the water quality of their ponds and affect the fish.
(K2K) to improve fish farming education in the country. This should be geared towards
➢ The technical knowledge gap also extends to hatcheries and farmers who try to produce practical skills and competence-based learning. A similar collaboration between vocational
fingerlings on their farms. education institutions in Tanzania, being the Dutch MBO Zone.College and Tanzanian FETA,
has been very successful. This can be complemented by training of Dutch experts from the
field, with great practical expertise. The Dutch Aquaculture Experts (DAE) have many such
experts as members.

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Potential implementing Rabobank, AgriWallet, Lendahand, training providers.


partners NL

Potential implementing Ugandan financial sector, ACF & aBi


partners UG
Financial institutions continue to shy away from lending to aquaculture sector
Suggested support tools DGGF, FMO, other IFIs such as IFC, WB, InvestNL

Challenge: Lack of financing and insurance options Opportunities: Improve financing options
➢ Across the aquaculture sector, lack of funding for working capital requirements and ➢ The ACF presently serves the large actors in the sector and is riddled with politics. Even
expansion activities diminishes farmers’ capacity to produce larger quantities and better seasoned businesses find it complex to obtain these funds from commercial banks. From
quality. Interest rates from commercial loans are high, resulting in only people with access the interviews, only 3-4 fish farms have been beneficiaries of the facility even though most
to capital from other businesses or family able to start fish farming. In other sectors and of the members are large scale, well-run farms.
aquaculture industries worldwide, much of the growth has been financed by other actors
along the value chain. ➢ Typically, small-scale farmers in Uganda generally exhibit low levels of professionalism; their
enterprises are often unregistered, limited levels of education, no record keeping, no
➢ Various programs have been developed by the Government of Uganda with the aim of business plans, little-to-know credit scores, among others. These factors render them
getting financing closer to various players in the agricultural sector. These initiatives include financially excluded from being considered recipients of loans from most financial
the Agricultural Credit Facility (ACF) which offers a lower interest rate of 12%, and the institutions within the country, the ACF inclusive.
Agricultural Business Initiative (aBi) which provides lines of credit and guarantees to
businesses in the sector. ➢ Whereas larger farmers can attract international low-cost funding such as DGGF financing,
smaller Ugandan players have limited financing options.
➢ However, securing funding from ACF and aBi is increasingly difficult because farmers that
are most in need of funding do not qualify under the requirements of the programs. As ➢ As such, a recalibration of the ACF program requirements would create a more conducive
such, the industry is still faced with limited financing options despite the existence of environment for small-scale farmers to acquire funding.
government initiatives. ➢ Furthermore, focusing on the aBi’s guarantee scheme would ensure that commercial banks
➢ Farmers also cite challenges in accessing credit arising out of lengthy bureaucratic contribute to the aquaculture sector since the aBi absorbs most of the risk.
procedures that cause delays in acquiring funding, ➢ To ensure efficiency and results however, it is essential to offer technical assistance to
➢ There are presently no insurance options in Uganda’s aquaculture sector despite the fact farmers, including on entrepreneurship. This would improve their farming practices and
that a large proportion of farmers are faced with unexpectedly low harvests and security build their capacity to pay back loans.
challenges among others, ➢ Dutch banks could provide a leading advisory role, having a strong ecosystem of agriculture
➢ The limited financing options, coupled with the complete lack of insurance, leaves fish financing. Dutch fintech solutions such as AgriWallet or Dutch crowdfunding tools such as
farmers unable to build capacity and vulnerable to unexpected shocks. Lendahand can also play a supporting role.

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Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Potential implementing Main Dutch aquaculture stakeholders already active


partners NL in Uganda, such as Trouw Nutrition or Koudijs

Potential implementing Yalelo, MAAIF, NARO, Ugandan marketing companies


partners UG
Increased sales to Ugandan consumers will reduce sectoral risks.
Suggested support tools PSD-Toolkit

Challenge: Market dependency on export Opportunities: Develop the domestic consumer


market
➢ At current, most of the aquaculture production from Uganda is regionally exported, with ➢ Instead of imposing export restrictions, which should be avoided at all cost when looking
limited domestic sales. This is a risk to overall sector sustainability, as the frequent border to support this value chain, interventions should be geared towards increasing domestic
closures in the region and other trade disputes could potentially negatively affect the consumption of fish.
industry.
➢ There is a real opportunity to develop the local market for quality, fresh fish. This fish
➢ However, domestic demand is still limited, with fish consumption rates in Uganda
commands a premium and such improves profitability of the sector. Moreover, this high-
significantly below recommended WHO levels.
quality fish leads to better product quality and food safety for consumers.
➢ Outside of the Lake region, access to fish is also limited and most fish is also not
consumed fresh. ➢ Currently, Yalelo is leading the development of the domestic consumer market for fresh
fish, by establishing well-branded outlets throughout Uganda. This is increasing the
availability of fresh quality fish to consumers in the country, while
➢ There is an opportunity to leverage and support this initiative, through a general Eat
More Fish campaign, promoting quality fish. A similar campaign has been successfully run
in Kenya.

➢ Other fish farmers could also be supported with locations where they can sell fresh fish
as well, overcoming the barrier of needing an integrated sales outlet..

➢ As there is a significant lack of affordable proteins in Uganda, increased domestic sales


would also improve food security. Fish is a healthy protein, with many positive health
benefits, Omega-3 fatty acids and vitamins such as D2 and B2. It is also a great source of
minerals, and thus serves as a high nutritious food that can support food security.

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Potential implementing AgriTerra, Solidaridad, Main Dutch aquaculture


partners NL stakeholders already active in Uganda, like Trouw
Nutrition or Koudijs
Potential implementing Ugandan private sector, MAAIF
The aquaculture sector in Uganda is heavily uncoordinated and unstructured. partners UG
Suggested support tools Impact Cluster, DGGF

Challenge: Inefficient market dynamics Opportunities: Formation of farmers’ associations


➢ Relationships between input suppliers, farmers, traders and other market players are vital ➢ Organization of farmers under unifying bodies like associations and cooperatives would go
to the smooth functioning of the value chain. a long way in alleviating several of the market-based challenges farmers and other sector
➢ In Uganda’s aquaculture sector, farmers have less power than traders. This was evident in actors face.
the fact that at harvest, traders come to the fish farm and offer the farmers significantly low
prices for their fish, rendering them unprofitable or unable to break even. ➢ Unity under an umbrella body would give farmers the ability to collectively bargain for
higher prices and reduce their vulnerability to traders .
➢ Due to the limited number of traders per region, they have the power to provide very low
prices to the farmers with no consequence to the trader. ➢ Collective bodies also give farmers access to connections and links that can be vital to the
➢ Furthermore, the Ugandan market currently prefers fish farmed in cages. This leaves pond improvement of their farms and farming practices. In addition, it is easier to communicate,
farmers with low market demand and results in most of them selling their fish in the train, and manage farmers under a group because most of them are located in rural areas
surrounding community. which are characterized by long distances between farms.
➢ In addition, the low production capacity of farmers makes them unable to sell their fish to ➢ An improvement in the quality of pond farmed fish could make it more preferred in the
export markets and regional markets within the country where they could get better prices market. This is an opportunity for input suppliers to contribute to the improvement of the
for their fish. However, this is not possible due to a lack of ice containers and frozen trucks. sector as their inputs are vital to the growth of the fish. The improvement could be in form
As such, small-scale farmers are limited to traders and consumers in their immediate of higher quality fish feeds or better-quality fingerlings.
surrounding community.
➢ Given the infancy of the country’s aquaculture industry, large-scale producers like Yalelo ➢ Investments in cold chain and post-harvest cooling for small scale pond farmers, in a
have not yet sufficiently penetrated the market. Consequently, there are limited cooperative form, would also allow them to store fish until traders are able to reach the
distribution centers across the country, leaving some regions and districts unserved. farm, improving their position in the market.
➢ The relations between traders and farmers, the preference for cage farmed fish and the
infancy of the aquaculture sector all speak to market inefficiencies that limit the sector’s
growth and development.

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environment interventions

Potential implementing EKN


partners NL

Potential implementing MAAIF, UG government


partners UG
Upcoming new regulations require support for proper implementation.
Suggested support tools G2G

Challenge: Regulatory reform needs to be properly Opportunities: Support regulatory framework


implemented ➢ The EKN can work with the MAAIF for a full regulatory review and assessment of the impact
➢ There are several key regulatory changes upcoming that could greatly benefit the sector of the new Fisheries and Aquaculture Bill on Dutch private sector involvement.
and could promote future Dutch private sector involvement. However, these also can
negatively affect industry development. ➢ It can also work with respective Ugandan agencies to properly structure the
➢ The aquaculture and the Fisheries and Aquaculture Bill looks to update the regulations implementation of the new legislation.
within the sector that were last updated in the 60s. The bill is on floor in the Parliament and
is looking to pass. ➢ Moreover, it could highlight the current discrepancy between the duties payable for
➢ The implications of the Aquaculture Bill 2020 on exports cannot be fully predicted. There is importing feed directly by farmers vis-à-vis imports of feed for sale to farmers by non-
a perception from the government that the law allows any manner of value addition such farmer importers. This creates a distinct tax advantage for larger farmers over smaller
as removing scales, intestines, packaging, among others. However, industry insiders farmers, and the Ugandan government should consider extending the duty waiver to non-
express a worry that it might harm the sector and there is a need for the government to farmer feed importers as well to promote broad growth of the sector.
address these legitimate concerns from the industry.
➢ Moreover, under the EU-TRUEFISH project, zoning of the Lake is likely to be supported. This
is critical, as sustainable development of the aquaculture sector requires suitable site
selection to avoid environmental damages as well as resource conflicts with other users of
the Lake such as fishermen.
➢ Finally, at current, import duties are waived when directly importing feeds for own use at
fish farms. However, when these feeds imported with the purpose of being sold in-country
to smaller farmers, duties apply. As such, larger farmers importing directly have a distinct Legislatory review and impact
assessment and potential
tax advantage over smaller farmers regarding costs of feed, which is the main cost driver in
implementation support of the new
aquaculture production.
Fisheries and Aquaculture Bill.
➢ For all three, after the passing of legislation and the introduction of adequate regulatory
framework, it is essential that is it is well-enforced and implemented.

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Available RVO/Invest International instruments for Private Sector Development

Instruments Description
PSD Toolkit The PSD Toolkit is a set of instruments available to the Embassy and RVO to develop small projects such as sector studies, small training programmes or for the
formation of Public-Private Partnerships.
SDGP facility The SGDP facility supports Public Private Partnerships that contribute to achieving the SDGs through a grant subsidy. This partnership should have at least one Dutch
partner. The instrument is currently closed for applications.
Impact Cluster The Impact Cluster is a RVO tool available for the development of integrated value chain clusters. An Impact Cluster is mutually designed by an Embassy, a consortium
of Dutch and local businesses and RVO.

DHI The demonstration projects, feasibility studies and investment preparation studies (DHI) is a subsidy for SMEs with international ambitions in emerging markets. Dutch
companies can apply for subsidy for demonstration projects, feasibility studies or investment preparation projects.

FVO The Fund for Responsible Business supports Dutch partnerships that wish to address the underlying causes of Responsible Business Conduct risks and misconduct in
their value chains and implement measures to address them.

PIB Partners for International Business (PIB) is a programme that allows Dutch businesses to enter into a public-private partnership to realise their international ambitions.
This is primarily focussed on matchmaking, networking and economic diplomacy.

DGGF The Dutch Good Growth Fund (DGGF) is set up to help Dutch entrepreneurs realise their international ambitions in emerging markets and developing countries (DGGF
countries). The fund supports investment, import, export and investment funds. Since October 2021, DGGF is managed by Invest International instead of RVO.

Develop2Build Develop2Build (D2B) is a Government-to-Government programme offering governments in 37 developing countries and emerging markets direct assistance in setting
up infrastructural projects. Since October 2021, DGGF is managed by Invest International instead of RVO.
DRIVE DRIVE facilitates investments in infrastructural projects that contribute towards a good business climate and entrepreneurship in the priority sectors: water, climate,
food security, and sexual and reproductive health and rights (SRHR). Public infrastructure projects that have a high development relevance in other sectors also can
apply for DRIVE support. Since October 2021, DGGF is managed by Invest International instead of RVO.
SIB vouchers SIB vouchers can be used by Dutch businesses, to hire a consultant for market studies, participate in a trade mission or to hire an international lawyer.

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Executive summary Overview Sector overview Feed Breeding Farming Route to market
environment interventions

Other Dutch organisations and tools

Other Dutch (funded) organizations or initiatives

PUM PUM is a volunteer organization of Dutch experts supporting businesses worldwide. 180 PUM representatives are spread over 35
countries across the globe, with 1700 experts being active in 45 sectors.

NUFFIC OKP (ends in 2021) The Knowledge Programme offers scholarships, training and institutional partnerships between education institutions in Technical and
Vocational Education and Training (TVET) and higher education, in fields related to the priority themes of the Dutch government:
• Food and nutrition security
• Water, energy and climate
• Sexual and reproductive health and rights
• Security and the rule of law

This is implemented through a number of calls, published on the website of NUFFIC. As of now, it is still unclear whether OKP will continue
to exist in a different form from 2022 onwards.

YEP Program The Young Expert Programme allows young experts, both Dutch and local, in the Agro&Food sector to gain experience in an intercultural
environment an work on a specific project related to either Water, Agrofood and/or Renewable Energy. Up to 50% of the salary of this
young expert is subsidized by the Dutch Ministry of Foreign Affairs.

CBI The CBI supports entrepreneurs to become successful exporters to the European market through export coaching projects.

Atradius Dutch State Business Atradius Dutch State Business offers a wide range of insurance and guarantee products for Dutch exporters of capital goods, their
financiers and/or investors. It also assist in finding other funding through the Dutch Good Growth Fund.

FMO FMO is the Dutch entrepreneurial development bank. FMO manages funds for the Ministries of Foreign Affairs and Economic Affairs of the
Dutch government to maximize the development impact of private sector investments.

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Annex

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Promoting Economically Sustainable Aquaculture (PESCA)

Partner organizations The Nature Conservancy, European Development Fund

Focus Cage farming, Pond farming

Area Uganda

Objective To increase fish production and profitability through cage aquaculture with minimal
impacts on the aquatic environment and other lake uses.

Period 2017 – 2024

Current activities ➢ PESCA is helping fish farmers across the country set up cooperatives. The
cooperatives are based on their sub-counties. The goal is to organize farmers
into groups which can easily lobby for financing and access to quality inputs.
➢ PESCA is also establishing two aquaculture parks in Uganda. Mwena aquaculture
park is a cage-based aquaculture park being established in Kalangala, with a
projected annual capacity of 20,000 MT. The land-based aquaculture park is
being established in Apac district in Northern Uganda.
➢ PESCA has also provided water quality testing equipment to two pond farmers in
Masaka, Central Uganda.

A water testing equipment donated to a farmer in Masaka by PESCA

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environment interventions

Building Resilient Communities, Wetlands Ecosystems and Associated


Catchments in Uganda Project
Partner United Nations Development Program (UNDP), Green Climate Fund (GCF)
organizations
Focus Wetland Restoration Program
Budget USD 44.3 MN
Area Eastern and Western Uganda
Objective To restore and sustainably manage wetlands and support target
communities in wetland areas of Uganda to reduce the risks of climate
change posed to agricultural-based livelihoods.
Period 2016 – 2025
Current activities The Building Resilient Communities, Wetlands Ecosystems and Associated
Catchments in Uganda project aims to support the Government of Uganda
in the management of critical wetlands that are being affected by climate
change. Some of the program’s current activities include:

➢ Restoration of wetlands and their eco-system services, in an effort


to reduce the increasing pressures on wetlands by encouraging
alternative livelihoods, resilient agricultural practices and
sustainable land management practices like reforestation.
➢ Some of these alternative livelihoods and resilient agricultural
practices include pond farming.
➢ Enhancing the skills of people living in wetlands to diversify their
livelihoods and become more resilient to climate shocks while
reducing their exploitation of wetlands.
Fish ponds in Bushenyi district constructed as part of the UNDP project

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EU TRUE-FISH Program
Partner European Development Fund, Lake Victoria Fisheries Office (LVFO),
TRUE-FISH
organizations program
WorldFish, Food and Agriculture Organization (FAO)
Focus Pond & Cage Farming
➢ Budget: EUR 10.15 MN
Budget EUR 10.15 MN
➢ Partner organizations: European Development Fund, Lake Victoria Fisheries Office (LVFO),
AreaWorldFish, Food andEAC
Agriculture
region Organization (FAO)
➢Objective
Focus: Pond & CageTo contribute to the development of competitive, gender equitable and
farming
sustainable aquaculture.
➢ Area: EAC region
Period 2019 – 2024
➢ Objective: To contribute to the development of competitive, gender equitable and
Current activitiescommercial
sustainable The True-fish project aims to address impediments to growth in
aquaculture.
aquaculture faced by investors. It has three main components which will
➢ Period: 2019 - 2024be implemented by different partner organizations as discussed below:

➢ Current activities: ➢ The LVFO will implement the first component and strengthen
The True-fish project aims commercial
to address networks for competitive
impediments to growthaquaculture-related
in aquaculture faced by
businesses.
investors. It has three main components which will be implemented by different partner
organizations as discussed below:

o The LVFO will implement FAO the
will concentrate
first componenton improving skills through
and strengthen vocational
commercial training
networks
centers in the Uganda,
for competitive aquaculture-related businesses. Kenya and Tanzania. FAO will also foster
o FAO will concentrate sustainability
on improvingofskills
monitoring
through and surveillance
vocational of aquatic
training centersanimal health
in the
conditions, and instituting zoning, particularly for cage
Uganda, Kenya and Tanzania. FAO will also foster sustainability of monitoring and culture in
surveillance of aquaticLake Victoria.
animal health conditions, and instituting zoning, particularly for
cage culture in Lake Victoria.
o WorldFish will ➢ WorldFish
implement the will implement
third component the third
whichcomponent
consists ofwhich consiststhe
improving of
improving
protection of biodiversity. the protection of biodiversity.

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• Examining the reared fish • Determining the Tilapia


species by district and Catfish from ponds • Target Feed market Feed Market
• Determining the pond and triangulated from sized based on total Sizing
cage production by district Market production figures Feed Market production volumes
from DFOs. Segmentation obtained at district level Assumptions from ponds & cages
• Determining the Tilapia and • Computing the average and the average FCR
Catfish FCR by district from pond production per for Tilapia and Catfish
DFOs for both pond and cage. species per region in pond and cage
• Determining the total cage • Tilapia production from
production from UCFFA cages figures obtained
from UCFFA

1 2 3 4 5 6

• Determining the average • FCR for Tilapia and • Total feed market
pond production per region. Catfish taken as range computed using
• Computing the production average FCR reported minimum and
per species from different districts maximum production
visited. per species.
Market Definition Pond Market • Computing the average Feed Market
FCR for Tilapia and
Sizing sizing
Catfish in both ponds
and cages

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environment interventions

➢ Bank of Uganda. 2021. Composition of Exports. - https://www.bou.or.ug/bou/bouwebsite/bouwebsitecontent/statistics/External_Sector_Statistics/Trade_Statistics/Composition-of-Exports_Values-


and-Volumes.xlsx

➢ Bolman, B., Pieter van Dujin, A. & Rutaisire, J., (2018). Review and analysis of small-scale aquaculture production in East Africa. Wageningen; Wageningen Centre for Development

➢ EAC Lake Victoria Fisheries Organization Secretariat, (2021). Cage Fish Farming Policy for the East African Community. EAC Lake Victoria Fisheries Organization Secretariat

➢ EU & EAC,. Action Document for EU-EAC True Fish Farming Story in Lake Victoria Basin (TRUE-FISH)

➢ Wang, X., Rafa, M., Moyer, J. D., Li, J., Scheer, J., & Sutton, P. (2019). Estimation and mapping of sub-national GDP in Uganda Using NPP-VIIRS imagery. Remote Sensing, 11(2), 163.

➢ Isyangi, N., Atukunda, G., et al,. (2009). Assessment of National Aquaculture Policies and Programmes in Uganda. SARNISSA: Sustainable Aquaculture Research Networks in Sub Saharan Africa

➢ Larive International & LightCastle Partners, (2021). Aquaculture Sector Study Bangladesh. Netherlands Enterprise Agency (RVO)

➢ Larive International B.V., (2020). Piggery and poultry market roadmap for sustainable value chain development. Embassy of the Kingdom of the Netherlands in Uganda.

➢ Ministry of Agriculture, Animal Industry and Fisheries, (2016). Agriculture Sector Strategic Plan 2015/16 – 2019/20 Draft. http://npa.go.ug/wp-content/uploads/2016/08/ASSP-Final-Draft.pdf

➢ Ministry of Agriculture, Animal Industry and Fisheries, (2017). National Fisheries and Aquaculture Policy. Entebbe, Uganda; Ministry of Agriculture, Animal Industry and Fisheries

➢ Ministry of Agriculture, Animal Industry and Fisheries, (2018). Performance Report Financial Year 2017/2018. Ministry of Agriculture, Animal Industry and Fisheries

➢ Ministry of Agriculture, Animal Industry and Fisheries, (2020). Aquaculture Training Manual for Extension Agents in Uganda. Ministry of Agriculture, Animal Industry and Fisheries

➢ Ministry of Agriculture, Animal Industry and Fisheries, (2020). Draft Annual Performance Report Financial Year 2019/2020. Ministry of Agriculture, Animal Industry and Fisheries

➢ National Planning Authority, (2020). Third National Development Plan (NDP III) 2020/21 – 2024/25. National Planning Authority. http://www.npa.go.ug/wp-content/uploads/2020/08/NDPIII-
Finale_Compressed.pdf

➢ Russell, D. & Mukuluma, A., (2021). PESCA Aquaculture Private Sector Forum Detailed Background Brief on Status of Main Project Activities. Promoting Economically Sustainable Aquaculture
(PESCA)

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➢ The Fish Act. Cap 197 (2000). https://www.parliament.go.ug/cmis/browser?id=ea753765-99fb-4540-9f68-cb187a081dc6%3B1.0

➢ The Fisheries and Aquaculture Bill, (2020).https://www.parliament.go.ug/cmis/browser/Sites/parliament/documentLibrary/Bills/Bills%202020/Fisheries%20and%20Aquaculture%20Bill%2C%202020

➢ The Land (Amendment) Act, (2010). https://mlhud.go.ug/wp-content/uploads/2019/03/Land-Amendment-Act-2010.pdf

➢ The National Agricultural Research Act, (2005). https://www.ulrc.go.ug/system/files_force/ulrc_resources/nationa-agricultuural-research-act-2005.pdf

➢ The National Environment Act. Cap 153, (2020). https://www.ulii.org/akn/ug/act/statute/1995/4/eng@2000-12-31

➢ Uganda Bureau of Statistics (UBOS), (2020). Uganda Annual Agricultural Survey 2018. Kampala, Uganda; UBOS

➢ Uganda Bureau of Statistics (UBOS), (2020). 2020 Uganda Statistical Abstract. https://africaopendata.org/en/dataset/uganda-bureau-of-statistics-statistical-abstract-2020/resource/a7aebf61-9110-
4a75-bfc6-01ad9639212c

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Number Name of actor Category Number Name of actor Category


1 Peter, Busia Pond farmer 16 Augustine, Kasese Pond farmer
2 David, Busia Pond farmer 17 Ntanda model fish farm, Kasese Pond farmer
3 Omar, Mukono Pond farmer 18 Sanga aquaculture, Bushenyi Pond farmer
4 Vincent, Busia Pond farmer 19 Kabeihura mixed farm, Bushenyi Pond farmer
5 Salama Farm & Hatchery, Busia Pond farmer 20 Jamuji fish farm, Bushenyi Pond farmer
6 Francis, Busia Pond farmer 21 Peter, Kayunga Pond farmer
7 Acres of Hope, Nebbi Pond farmer 22 Ali, Kayunga Pond farmer
8 Musoke, Mayuge Pond farmer 23 Global View Holdings, Nebbi Pond farmer
9 Bogere Fish Farm, Buikwe Pond farmer 24 Glorious Streams Farm, Wakiso Pond farmer
10 Joseph, Buikwe Pond farmer 25 Katwe fish city farm, Masaka Pond farmer
11 Silvatorio, Lira Pond farmer 26 Pallotine fish farm, Masaka Pond farmer
12 Geofrey, Lira Pond farmer 27 Masaka Youth Devt organization, Masaka Pond farmer
13 Mapema fish farm, Mbarara Pond farmer 28 Wilber, Luweero Pond farmer
14 Dejafa mixed farm , Mbarara Pond farmer 29 Johnson, Mayuge Cage farmer
15 Nicken fish farm, Isingiro Pond farmer 30 Erisa, Mayuge Cage farmer

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Number Name of actor Category Number Name of actor Category


31 James, Wakiso Cage farmer 46 Nebbi DFO
32 Anthony, Mukono Cage farmer 47 Mayuge DFO
33 Farouk, Jinja Cage farmer 48 Sylvia, Busia Trader
34 Buikwe DFO 49 Yasin, Busia Trader

35 Mukono DFO 50 Ayob, Busia Trader

36 Kayunga DFO 51 Rosemary, Busia Trader

37 Luweero DFO 52 Patrick, Busia Trader

38 Wakiso DFO 53 Edward, Kisoro Trader

39 Tororo DFO 54 Kanyana, Kasese Trader

40 Masaka DFO 55 Ugachick Feed producer

41 Mbarara DFO 56 Naschick Fish Feeds Ltd, Kampala Feed producer


42 Bushenyi DFO 57 Angir Feed Millers, Nebbi Feed producer
43 Kasese DFO 58 Enoch, Wakiso Feed producer
44 Lira DFO 59 Rocksprings fish farm, Tororo Hatchery
45 Busia DFO 60 Salaama farm and hatchery, Busia Hatchery

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Number Name of actor Category


61 Kabeihura mixed farm, Bushenyi Hatchery
62 David, Luweero Hatchery
63 Lira District Farmers’ Association Association
64 Uganda Commercial Fish Farmers’ Association Association
65 Walimi Fish Cooperative Society (WAFICOS) Association
66 MAAIF Expert
67 MAAIF Expert
68 Albertine region expert Expert

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Larive International B.V.


Wouter van Vliet: Wouter.van.Vliet@Larive.com

Tim de Kruiff: Tim.de.kruiff@larive.com

Asigma Capital Advisory Services Ltd

88 2022 | Aquaculture Road Map Uganda

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