1. Key development issues and rationale for Bank involvement
Agriculture is a key sector of the Ugandan economy and features prominently amongst the top five priority areas for public sector investment in the country's new five year strategic framework for economic development, the National Development Plan (NDP). It is also the centerpiece in the Prosperity for All (PFA) program, the vision driving the NDP based on the political manifesto of the NRM. Recent analytical work also highlights agricultural growth as a key determinant in the country's efforts to reduce poverty in the immediate years ahead. It is within this framework that the Development Strategy and Investment Plan (DSIP) for the agriculture sector is being designed under the auspices of the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). The DSIP envisages a comprehensive Sector Wide Approach (SWAP) to be aligned with the principles and aspirations of the Comprehensive Africa Agriculture Development Program (CAADP), which has been endorsed by African governments, including the Government of Uganda (GoU). The DSIP will focus on four main intervention and investment areas, namely: (i) enhancing agricultural production and productivity; (ii) improving access to and sustainability of markets; (iii) creating an enabling environment for the agricultural sector; and (iv) undertaking agricultural sector institutional reforms and development.
In the past, the Bank has supported agricultural research and advisory services through two parastatals, the National Agricultural Research Organization (NARO) and National Agricultural Advisory Services (NAADS), given their critical contribution to pro-poor agricultural growth in Uganda. The institutional development, including the reforms of the NARS, and agricultural research efforts of NARO have been supported by the Bank since its inception in 1992 through two successive projects (ARTP I and II, including Additional Financing for ARTP II for the past two years). The institutional development and advisory services through NAADS have been supported since its inception in 2001. Both agricultural research and NAADS were key pillars of the Plan for Modernization of Agriculture (PMA), the strategic framework for the sector since 2001. Both areas are also core functions and mandates of MAAIF under the proposed DSIP, and are projected to absorb more than 50 percent of total sector budget over the next five years.
Despite the critical role of these "supply side" interventions, it is increasingly recognized by GoU, other stakeholders and the DPs that other core public functions, also identified as core mandates of MAAIF under the proposed DSIP such as animal and plant disease control, regulatory services, water for agricultural production, sector statistics and monitoring and evaluation, etc. need to be also supported to ensure enduring agricultural growth, including the desired impact of research and advisory services.
The DSIP, however, is still being developed. Among the core functions, the agricultural technology and advisory services programs are the most advanced in terms of preparation for the next round of support. Important aspects relating to the rest of MAAIF such as an effective institutional structure for MAAIF, division of labor between national and local governments, and the role of the private vs. public sectors remain to be refined. To minimize implementation disruptions for NARO and NAADS and in the light of the different state of readiness of the full DSIP, the Government has requested the Bank and the other DPs to prepare their support to the DSIP agenda using a "two track approach" comprising: (i) a fast-track program to put in place the next phase of support for Agricultural Technology and Advisory Services (ATAS) for NARO and NAADS, with the related institutional support, and (ii) a second-track parallel program to cover the other critical priorities of the DSIP. This is the basis on which the ATAS project is being proposed.
The ATAS project will build on the completed Second Agricultural Research and Training Project (ARTP II) and the nearly completed National Agricultural Advisory Service Project (NAADS). Significant institutional development progress has been achieved under these projects, including (i) the establishment of a decentralized, demand driven and pluralistic advisory services through the NAADS Act in 2000; (ii) the building up of NARO since 1992 and then the reform of the National Agricultural Research System (NARS) through the NARS Act in 2005; (iii) innovative designs of both NARO and NAADS; and (iii) strengthened stakeholderdriven NARO and NAADS governing entities at the national and zonal levels. There is considerable evidence of impact at the farm level in terms of technology dissemination and adoption, household incomes and other outcome measures. Further, a key achievement of the previous projects has institution building and the establishment of basic capacities, along with enhanced service delivery. The next phase would consolidate the achievements of the previous projects by further strengthening the institutions, deepening their effectiveness and outreach, and move the agenda forward under a unified framework for substantive research and service delivery. NARO and NAADS are now well-positioned to exploit synergies and deliver increased results for the sector.
Another new element in the next phase will be increased attention to sustainable land management (SLM) to help prevent and reduce the impact of land degradation processes on ecosystem services in agricultural landscapes. This effort is envisaged to strengthen farmers' capacity to adapt to climate change. This support will build on the Bank's SLM PER, the Uganda Strategic Framework for SLM, and the current DSIP through generation and dissemination of proven SLM technologies such as integrated nutrient management, agroforestry, reduced tillage, and water harvesting, among others. Global Environment Facility (GEF) grants will be used for these activities, and will be fully blended with IDA and other financial resources to promote SLM. GEF support would also finance the GoU's on-going effort as part of CAADP pillar 1 to improve institutional capacity to carry out multi-sector investment programming and monitoring on land use, land management, and land use change. This effort is led by MAAIF and involves NARO and five line ministries.
The ATAS project will be supported by other DPs in addition to IDA. IFAD will continue with the current arrangements it has with the World Bank for NAADS for management of their funds. The EC, DANIDA, and the African Development Bank (AfDB) are the other DPs who will participate in the program through parallel financing to a "basket fund" and have actively been participating in the project identification and preparation.
