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Uganda Update Fall 2009 Final
Uganda Update Fall 2009 Final
Uganda Update Fall 2009 Final
REGIONAL LEADERSHIP
CLIMATE CHANGE
FOOD SECURITY
REGIONAL TRADE
TRADE CAPACITY PROGRAM Mr. Amin Shivji, Managing Director of Amfri Farms,
complimented Traidlinks on its support. “Traidlinks does not
OPENS WAY FOR EXPORTERS just improve the product and packaging. They have stayed
A trade capacity-building program launched at the be- with us [during] the whole evolution of the product, the pro-
ginning of 2009 by the Uganda Export Promotion Board cess, the human resource, management,” he said. “[Amfri]
(UEPB), in partnership with the Irish-supported organiza- has now matured to a professional level. [When] you walk
tion Traidlinks, has already garnered $3.2 million in sales in, you are walking into a sophisticated environment. This
orders from neighboring Kenya, and is projected to earn means that everybody has to be brought up to that level.”
about $11 million over the next three years in regional ex- Amfri Farms Ltd. grows and exports organic fruits and
ports of Ugandan fruits and vegetables. vegetables, and is certified to European Union (EU) stan-
The MarketLinked program works to build the capacity of dards. It has over 100 certified out-growers and buys produce
the food-processing and agribusiness sectors and has direct from about 20 other growers.
benefits through the supply chain to agriculture, providing
an increased internal and regional export market for agricul-
tural goods while building the capacity of farmers. TELECOMMUNICATIONS
The program focuses on experiential, market-led skills
transfer, and includes three formal workshops, market re-
search and a sales mission to a neighboring regional market.
Traidlinks facilitators work with individual private Ugandan
MTN UGANDA TO INVEST
agro-processing companies to teach export skills by combin- $100 MILLION IN UPGRADES
ing formal management and technical training and hands-on MTN Uganda, the country’s leading mobile phone service
export market development support. The program specifi- provider, has secured an innovative $100 million financing
cally targets agribusiness because almost 80% of Ugandans facility from 11 local and regional banks to improve and
depend on agriculture for their livelihoods, contributing expand its network. The deal represents the largest syndi-
67% of GDP. cated corporate credit line ever made available by Uganda’s
In 2009, Traidlinks worked with 12 fruit and vegetable banking sector.
exporters, including Amfri Farms Ltd., Sulma Foods Ltd., The telecommunications provider, which claims an esti-
Frona Commodities and Bessa Ltd., all of which are export- mated 65% of the country’s fixed and mobile phone market,
ers of fresh, dried and frozen fruits and vegetables. plans to use the line of credit to finance its ongoing expan-
Traidlinks, a not-for-profit organization linking the Irish sion, including the construction of further cell towers and
business community to the Irish government’s aid program base stations, the development of new products and the con-
in developing countries, developed the MarketLinked pro- solidation of its market leadership in the face of increasing
gram based upon a pilot project it conducted with Amfri competition.
Farms. It began to work with the Kampala-based agro-pro- Since it was established in 1998, MTN Uganda has invest-
cessor in 2005 after it selected Amfri as a supplier of organic ed a total of $578 million to provide fixed and mobile tele-
dried fruits to compliment the tea and coffee in its Heart of phone services to about five million Ugandans. It has been a
Africa range of fair trade products. leader in Africa in extending telecommunications access to
Traidlinks developed a model for the MarketLinked pro- rural villages through innovative programs such as its Vil-
gram by identifying gaps in key areas such as production, lagePhone program instituted in partnership with microfi-
inventory, labor and accounts, and by providing Amfri with nance institutions such as the Grameen Foundation.
relevant expertise to put in place the necessary management South Africa-based investment bank ABSA Capital co-
systems to address these gaps. ordinated the credit line, which is backed by Stanbic Bank,
Kenya Commercial Bank, Standard Chartered, Barclays,
Ecobank, DFCU Bank, Bank of Africa Uganda, Citibank
Uganda, Orient Bank and United Bank of Africa.
“The corporate financing facility is an indication of the
confidence that banks have in our company. It also reflects
the confidence that the financial sector has in the Ugandan
economy and the prospects of the Ugandan telecommuni-
cations sector,” said Mr. Themba Khumalo, MTN Uganda’s
CEO.
“The innovative structure addresses the need for strong
local corporate credits in the sub-Saharan Africa syndicated
loan market to manage their funding needs and avoid fre-
quent refinancing and associated costs as additional debt
funding becomes available - allowing corporate issuers to
maintain an optimal and efficient capital structure,” said
Employees chopping passion fruit at the Amfri Farms factory
MTN Uganda’s Chairman, Mr. Charles Mbire.
in Kampala
PAGE FOUR
INNOVATION & CONSERVATION
LOCAL SOURCING