GADC

Our social impact
livelihood
IMPROVED LIVELIHOODS

GADC has used our capital to purchase cotton from an additional 10,360 small-scale farmers in northern Uganda, integrating them into an export value chain.
Lift in income
UPLIFT IN INCOME
Farmers engaged by the business will receive extension training to improve productivity. The additional income earned by farmers thanks to the working capital facility is $46.
Food security
FOOD SECURITY
GADC has encouraged their farmers to grow other crops which they purchase such as maize, chillies, sesame and sunflower which diversifies farmer incomes and diets.
Community
IMPROVED COMMUNITIES
The SDU is working with GADC farmer groups to strengthen village savings and loan associations (VSLAs) which not only enable groups to access credit but also save for school and healthcare.
Real lives
David Ojok, Cotton Farmer, GADC, Uganda
With AgDevCo’s investment, GADC has been able to more than double the number of farmers from whom it purchases cotton and sustain extension services to them, increasing their incomes year-on-year. David Ojok, one such farmer, says: “I am looking forward to the harvest because GADC gives us a good deal for our cotton - their weighing scales are not tampered with unlike other cotton buyers in these areas. With GADC buying now, I know that my cotton will be bought at a good price.”
"I have taken all my 4 children to a good school and my housing has improved. Once again, cotton has become a bread-winner for us. "
Overview
The Challenges

In the 1960s, Uganda was sub-Saharan Africa’s largest cotton producer. Political instability and poor policy choices of the 1970s led to the sector’s decline. Attempts to revive the sector with lending operations during the 1980s failed, but policy reforms combined higher cotton prices revitalized the sector in the 1990s. Nevertheless, there remained the sense that the sector lagged behind its full potential due to low quality of cotton, lack of domestic textile industry and a limited use of inputs due to a lack of rural credit. Cotton today remains a key priority sector for the government of Uganda as it is one of the top five exports. It is particularly important to northern Uganda as a traditional cash crop.

Our Approach

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.) GADC is a cotton, sesame and chilies aggregator and processor established in 2009 in northern Uganda providing inputs, training and marketing access for tens of thousands of local farmers. It was one of the first commercial companies to establish operations in northern Uganda following the end of the civil war.

AgDevCo is also providing a grant alongside the loan to help farmer groups access credit and affordable mechanisation solutions. The grant funding is through AgDevCo’s Smallholder Development Unit in partnership with the MasterCard Foundation. See case-study of AgDevCo’s impact on agribusiness and smallholder farmers at GADC here.

Our Impact
  • Link 10,360 small-scale farmers to export markets, the majority of whom (up to 60%) are expected to be women.
  • Improve ESG systems including Integrated Pest Management (IPM) for farmers and occupational health and safety for employees.
  • Provide opportunities for off-shoot small-scale trading businesses providing ancillary services to GADC network farmers e.g. small businesses supplying farm inputs and providers of mechanised services such as tractor hire services.
  • Increase farmers’ incomes. 
investment
$2,500,000
Committed Investment
We believe we can deliver more impact by making investments that help responsible agribusinesses grow.
If you believe your business meets our investment criteria, we want to hear from you.
Contact us

Our Uganda Investments