Northern Uganda needs significant private sector growth. Harnessing Northern Uganda’s untapped potential in agriculture will propel the regional-economy forward, increase productivity, create jobs, and reduce poverty levels. However, without large-scale private sector investments, rapid development is unlikely to take place. Pillar 3 is essential on its own; it is also reliant on the other pillars to be achieved and sustained. For instance, private sector growth would be limited without improved infrastructure and a skilled workforce. Although the Ugandan economy has realized sustained real growth since the 1990s, the structural transformation experienced is minimal. The majority of people in Northern Uganda work predominantly in informal sectors, mainly subsistence farming which does not lift people out of poverty.

Only 8 percent of the agro-processing plants of the country are found in northern Uganda. Many agro-processing companies in the North report that they are operating below capacity because of substandard and insufficient supply of raw materials. Further, productivity is low because of inadequate agriculture tools, inadequate planning and poor methods of farming. Improved method of farming will improve productivity and increase the number of businesses in agro-processing and manufacturing. Focus on commercial farming by for instance using the 4-acre model; growing of high value commodities; formulation of farmer cooperatives; increasing access to agriculture service centers and funds; and providing water for production (irrigation and livestock) can improve production and productivity. Financial, material and technical support through the Parish Model will also enhance productivity. Agriculture value chain information to identify the best variety, timing of planting, quality and marketing and other factors for profitability will be enhanced. Several layers of change need to take place to allow structural transformation, for instance, skilled workforce and necessary infrastructure (Pillar 1 and 2) are significant pre-conditions of pillar 3. Interconnectedness with new agribusiness growth for availability of raw inputs for processing is also important.

Increased supply of quality raw agriculture inputs is required for current businesses to operate at capacity and for new businesses to develop. Large-scale industrial, agriculture processing / manufacturing is still new in northern Uganda. Nwoya district stands out as a model where large scale commercial farming has taken root by investors under a PPP arrangement. Our development hypothesis for Pillar 3 is if there is broad-based private sector growth then there will be increased productivity, higher employment, and poverty reduction.