86% of people in Uganda live in rural areas, with 22% of the rural population living in poverty. The Ugandan economy has demonstrated consistent growth over the past few years but the northern region lags significantly behind. Currently almost 90% of the population in the north depend on rain-fed, subsistence farming. The average plot size is below a hectare and productivity is low because there is almost no use of modern inputs or improved farming practices.
In 2015, AgDevCo opened its office in Kampala. AgDevCo supports agriculture businesses that have linkages to small-scale and emergent farmers. Eligible businesses must be located in northern Uganda, or have strong links to farmers and/or customers in the north. By providing technical assistance in addition to capital, we help investees establish profitable operations that are capable of attracting third-party investing, thereby kick-starting a virtuous cycle of investment and economic growth in this neglected region.
Sources: World Bank, FAOSTAT, Global Food Security Index
AgDevCo is providing $2,500,000 in working capital to GADC as part of a consortium with other social lenders including the Lending for African Farming Company (LAFCo.)