Workshop on Strategic Criteria for Rural Investment in Productivity (SCRIP)

1. Workshop onStrategic Criteria for Rural Investment in Productivity (SCRIP) October 14-15, 2004 Hotel Africana, Kampala, Uganda

2. What is SCOPE? • Strengthening the Competitiveness of Private Enterprise (SCOPE) -- a U.S. Agency for International Development (USAID) – funded activity (3 years) • USAID/Uganda’s SO7 - Expanded Sustainable Economic Opportunities for Rural Sector Growth • Supports Uganda’s efforts to increase competitive positioning in the global marketplace through 3 components: • Private sector competitiveness increased • Private/public partnerships for competitiveness increased • Competitiveness understood and promoted • Provides targeted technical support in high-priority export sectors: cotton, coffee, grains (maize/beans), oilseeds, horticulture, dairy, fisheries and tourism • SCOPE with its partners APEP, PRIME and RATES contributes directly to the achievement of the SO7 objectives

3. What is Competitiveness? • A way of thinking • A principle to inform approaches to business strategy and decision-making • A condition: sustainable economic growth characterized by increased productivity, innovation and efficiency. • A result: of the coordinated efforts of private and public sector leaders who cooperate in order to achieve economic growth.

4. Uganda’s Economic Framework • Competitiveness is strategic theme in all policy documents • PEAP – Poverty Eradication Action Plan • MTCS – Medium Term Competitiveness Strategy (for the Private Sector) • PMA – Program for the Modernisation of Agriculture

5. SCOPE COLLABORATION WITH USAID PARTNERS AND GOU

6. Uganda’s Coffee Industry • Contributions to the economy • No. 1 export earner for Uganda • Contributed 21% of export earnings in 2002 (55% before 2000) • Export earnings of US$ 105.0 m in 2002/03 • Average export volume of 3.2 m bags over past 10 years • Volume declining since 1996/97 from 4.2 m to 2.7 m bags in 2002/03 • Export revenue declined from US$ 432 m in 1994/95 to US$ 84 in 2001/02 • Provides livelihood to 500,000 farm families • 5-6m livelihoods supported through related industries • Possibilities? Turnaround for the industry within the next 3 yrs

7. What is SCOPE doing for coffee? • Private Sector Working Group Formed • Business Development Target Set • Developing a Strategy for Repositioning the Industry • Production Mapping and Capacity Survey • Survey of Traders/Exporters • Development of Business Plan • Preparation of UCTF Sustainability Strategy • Cluster Formation

8. Uganda’s Cotton Industry • Contributions to the economy • $40million export earnings in 2002/03 • Highest volumes achieved in the 1970’s with annual production at 500,000 bales • Volume declined to as low as 11,000 bale/yr in the early 1990’s • Volume stagnated around 100,000 bales p.a. • 160,000 bales in 2003/04 • Possibilities? Potential to grow with adoption of new farming technologies and increased acreage

9. What is SCOPE doing for cotton? • Lead Ginners Working Group Formed • Business Development Target set • Developing a Strategy for repositioning the Industry • Survey of Lead Ginners ongoing • Assessment of Strategic issues underway • Presentation of Survey findings and Recommendations • Assessment of UGCEA capacity underway

10. Successful Competitiveness Initiatives • Form around plans developed by private sector leaders who work together to identify feasible and deliverable competitive positioning targets • Set specific market expansion and economic growth targets that can be agreed upon by private and public sector leaders to provide the framework for joint action • Form clusters – groups – of private and public sector actors who work in partnership to develop strategies for addressing constraints • Cooperate to Compete!!