Digital agriculture platforms: Understanding innovations in rural finance and logistics in Uganda’s agrifood sector

Ajambo, Susan · Ogutu, Sylvester · Birachi, Eliud · Kikulwe, Enoch

2023년 2월 · Rethinking Food Markets Initiative Note 5권 · Intl Food Policy Res Inst

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Agriculture is the mainstay of Uganda’s economy, contributing about 25% of the GDP, a third of the ex port earnings and almost all the country’s food requirements. Yet, the sector still faces various challenges that affect production and the income derived from it. Systemic issues impact smallholder farmers' livelihoods across markets, land, skills, and capital, with cross-cutting social exclusion issues. Effective application of digital agricultural technologies has emerged as a catalyst in addressing productivity and efficiency challenges and enhancing inclusiveness in agri-food systems. Digital technologies have shown potential to address bottlenecks in access to extension services, marketing systems, suitable financial products, reliable weather information, transport services and logistics as well as supply chain management. Scaling of digital agricultural technologies in Uganda is critical for improving productivity and addressing challenges in the agricultural sector. However, for scaling to be undertaken effectively and inclusively, there is need to address the barriers that limit the use of digital innovations for some populations. However, the issues surrounding scaling and inclusivity of digital services are not well understood. This study therefore sought to contribute to bridging this knowledge gap through an assessment of the existing digitally enabled innovative cross-value chain services to gain insights into how the services are addressing inefficiencies, creating opportunities for improving efficiency and inclusiveness as well as identifying promising innovations for scaling. Specifically, the study focused on innovations in finance and logistics for value chains. For finance, the study specifically looked at digital payments, credit, and insurance, while for logistics, the focus was on supply chain management, transportation, traceability, digital platforms for e-commerce, and (cold) storage across value chains.