Plight of COVID-19 on Uganda's agribusiness sector
The COVID-19 outbreak demonstrates both how health and food systems are linked to one another, and how local food systems are linked to global systems. Rapid Market Assessment for the sesame sub-sector in Uganda shows that agribusinesses anticipate reduced product demand and inability to meet costs of operations – especially if restrictive measures persist.
The majority of medium and large agribusinesses do not foresee closure. Furthermore, there is a slightly higher resilience amongst primary agricultural producers and manufacturing firms compared to service sector firms. In the beans sub-sector, there is an acute lack of working capital as the conventional finance providers have a diminished appetite for risk. Not only have lenders experienced a marked reduction in the volume of deposits, they are also unable to collect repayments on loans that were taken out. The sub-sector has also been affected by a significant attrition of labour complicating the crop in the field and preparations for harvest. The government has authorised existing food markets to continue operations under two conditions: A distance of two meters must be maintained between sellers and buyers; and food sellers must stay within designated areas and be replaced after 14 days. Uganda’s borders have remained open for trade, both the export of commodities and the import of agricultural inputs. Transporters can continue to cross back and forth from Kenya, South Sudan, etc. A number of challenges have been encountered, such as delays due to health controls, which have led to increased transport costs. There are, however, no official restrictions on the regional and domestic transportation of goods.
Chopped by
