BUILDING ENTERPRISE – CREATING JOBS

The problem

Teso is an area that is one of the poorest in Uganda which in turn is one of the poorest countries in Africa. Teso has an economy entirely based on agriculture of ground crops such as groundnuts, sorghum, maize, millet, cassava and fruit such as mangos, pineapples, papaya, oranges, cashew nuts and avocado pears. These are low value products and manly provide food for the local people. Animal rearing is of goats, chickens, turkeys and cattle.

The area is fundamentally very fertile and if rainfall is adequate, crop yields are good.

But it has suffered seriously from the LRA and Karimojong incursions that have caused enormous damage to the economy in the past. The improving security situation means that, in line with the Ugandan economy as a whole, the local economy is recovering.

Local people are enterprising but lack finance, tools, and skills. Loans from the conventional Banks are difficult and the cost is high .The insurgency has resulted in many losing essential equipment; and sophisticated business skills e.g. in financial management, IT and marketing are lacking.

The provision

Where help has been provided with training, small loans and marketing aid through Church and other agencies, good results have been achieved.

TDT, with the Church of Uganda and other support agencies over the last 10 years, has given much help to people to start businesses and create jobs .The 2003 LRA insurgency was a major set back. Priority in the last two years has been to help people just develop food security i.e. an adequate food supply for themselves from their land.

Left: Groundnut processing machine bought by TDT for a new farmers' association, benefitting 240 families.	Right: Sewing ladies co-operative - an example of a micro-loan scheme being supported by TDT.

However, moves are now possible to encourage people to grow cash crops e.g. groundnuts, pineapples and citrus fruit to provide cash e.g. to pay school fees and for them to have money to invest in their farming.

A further step that can be taken is to invest in food processing that will add value to crops and enable the farmers to export to other parts of Uganda or overseas.

Examples are micro loan schemes whereby a cooperative of people manage and control a loan fund on a mutual basis allied with training. One such scheme, run by Revival Time Ministries in Wera, has aided 80 women into business.

Skills training is key and the Church of Uganda has a vocational skills training centre at Soroti that trains 350 people every year in skills such as building, joinery, car maintenance, hair dressing, IT, clerical skills and catering. The outturn in terms of employment from this school is very good in terms of people finding jobs.

The VTI (Vocational Training Institute) has just been able to rebuild part of its centre with aid from the Japanese government; and Tools with a Mission UK with TDT aid is providing significant re-equipment of its workshops.

The challenges

The development partners in Teso need to encourage enterprise development through

• Training in skills
• Enterprise training
• Provision of micro loans
• Marketing support
• Equipment for food processing
• Animal restocking
• Improvement of the various training centres that provide essential job training

Much can be done for fairly small investments  e.g. 

• A micro loan scheme aiding 100 can be funded for £2000
• A goat costs £10
• A cow costs £80
• A grinding machine for groundnuts costs £1500