ADRA has signed an agreement with Kyaterekera Agricultural School in Uganda

On Tuesday 1 November 2016, ADRA Denmark signed an agreement with Kyaterekera Agricultural School in Uganda, which will lead to a new Ingrower Business Plan. The Kyaterekera Agricultural School Ingrower will focus on poultry and garden vegetables and is located close to the Nile, with expected implementation facilitated by ADRA Business.

The signing took place during the biannual ADRA Business Forum meeting in the presence of some 25 stakeholders from Africa, mainly Uganda, and Denmark, representing a variety of private, public and other institutions under the theme of “Low or No Interest Loans & Impact Investment”.

Besides Erik Buch Procida, Director of ADRA Business, and Lehnart Falk, General Secretary of ADRA Denmark, the speakers included several Ugandans speaking about the conditions and business environment in Uganda and Africa, as well as presentations specifically on impact Investment.

Ambassador Danny Ssozi, Deputy Head of Mission, Uganda in the Nordics, presented trends and projections for Uganda. Ms Jenipher Nakiyemba, CEO of Adfarm ingrower, Uganda presented the status of Adfarm Ingrower and impact investment in Uganda. Ms Jean Ahlefeldt-Laurvig, MD of African Sustainable Development Office Ltd, London presented the view of impact investors, while Mr. Dalton Elijah Ssegawa, owner of Kyaterekera Agricultural School, Uganda, explained why he invest in an ingrower – quite convincingly.

Also present was Anders Frigaard, Managing Director of danishknowhow, who is the originator of the ingrower model and is implementing it in collaboration with ADRA Business. The model has so far been a success, and with Uganda being the “fruit basket” of Africa, the country has huge potential for agri-business. However, lack of knowledge, management skills and practical technology has severely limited the commercial opportunities. This is where the ingrower provides many possibilities.

There are also challenges faced by social investors in Africa, not least the one of legitimacy and their position in society. One issue is related to funding, as banks will not treat such projects with standard business bank rates, unless collaterals are more-fold and expresses a doubtful and negative attitude, which needs to change. This, however, has most recently (since the 1 November meeting) been addressed by African Development Bank, via their announcement that they will implement new terms and conditions via the national central banks and onwards via the local banks to even medium size lenders to take on far greater liability (and in effect most risk and cost induced in possible failed lending) so that collaterals are significantly reduced, in best case eliminated. This is yet another brave initiative taken on by the President of African Development Bank, former Minister of Agriculture in Nigeria, Mr Adesina !