81305897-Improving resilience of smallholder farms and competitiveness of Micro Small and Medium Enterprises in Northern Uganda

Short description of the project "Promoting Rural Development in Northern Uganda II": In line with the Uganda Vision 2040 and the Third National Development Plan 2020/21-2024/25 (NDP III), the National Strategy for Local Economic Development (NSLED) 2021/22-2024/25 aims to increase income and employment through sustainable use of natural resources, strengthening the resilience of agri-food systems, as well as agriculture-based growth and increasing value creation in rural areas. Despite socially, ecologically, and economically viable opportunities and political will to shape local economic development (LED), micro, small and medium-sized enterprises (MSMEs) in Northern Uganda do not invest enough to increase agriculture-based value addition and thus create employment and income. This is due to the lack of resilience of smallholder farmers to climate change and other stressors, insufficient resource efficiency and inclusion of the business models of MSMEs, a lack of non-financial and financial services, and framework conditions that are not conducive to MSME development. The inadequate transformation of the agricultural and food systems in Northern Uganda limits the valorization of the economic, social, and environmental capacities of the population (core problem). Against this background and building on the results of the predecessor project "Promoting Rural Development in Northern Uganda", a project proposal to promote local economic development in Northern Uganda was developed. The aim of the project is to value the transformation of agricultural and food systems for smallholder farmers and micro, small and medium-sized enterprises in Northern Uganda. Output 1 aims to encourage smallholder farmers to adopt practices for the climate-smart and sustainable use of natural resources. The aim of Output 2 is to improve the capacities of MSMEs so that they operate in a resource-efficient manner and are inclusive for women and young people. Output 3 aims to improve the provision of advisory and financial services for MSMEs. Output 4 is aimed at strengthening the capacities of the public and private sectors for an evidence-based orientation of local economic development. The project is being implemented over three years (2023-2026) with a contribution by the German Cooperation.