TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

CHART 1
Uganda coffee value chain
COFFEE BUYING
CENTRES
RAW, UNPROCESSED
OR SEMI-PROCESSED
(using both dry and wet
method)
UP TO PATCHMENT
Source: Uganda National Export Strategy 2007.
PRE-SELECTING
DE-PULPING
FERMENTING
WASHING
Cultivation of rose flowers in Uganda is
predominantly undertaken by majority Ugandanowned
companies. In all, 14 out of 20 companies
(or 70 percent of the total companies) produce
roses. These companies comprise Ugandanowned
and foreign-owned companies but do not
include companies owned by Dutch investors. The
three largest exporters of roses: Rosebud Limited,
UgaRose Limited and Jambo Roses Limited, are
Ugandan-owned companies.
All the five companies established by investors
from Holland, which boasts expertise in flower
production, produce plant varieties other than
roses (mostly chrysanthemum cuttings). One
Ugandan-owned company (Chrysanthemum
Cuttings Ltd), which was established in 2007, has
ventured into the production of chrysanthemum
cuttings. This company has the same ownership
as Kajjansi Roses Ltd, which was established
earlier and cultivates roses.
Flowers and cuttings have emerged as major,
non-traditional export commodities for Uganda,
with an estimated value of US$22.8 million in
2007, making these products the fourth largest
non-traditional export commodities after fish,
gold and maize (Uganda: Statistical Abstract
2008). Floriculture exports are dominated
Part 3: Policies for attracting FDI and impacts
on national economic development
TRANSPORTERS
BROKERS ROASTERS WHOLESALER RETAILERS
COMPANIES/
EXPORTERS
HULING, CLEANING,
GRADING,
COLOUR SORTING,
STANDARDIZATION
EXPORT READY
GREEN BEANS
by cut flowers (virtually all cut roses), and
chrysanthemum cuttings (Uganda, UFEA 2007).
There are three types of roses currently
grown in Uganda: T-hybrids (long stem, big
flower heads), sweethearts (short stem, small
flower heads) and floribundas (intermediate).
The sweetheart rose variety is most suitable
for Uganda’s warm, humid climate. Trials with
chrysanthemum cuttings started in 1995, through
joint ventures with Dutch companies, and very
high yields of cuttings under Ugandan conditions
were indicated. Indeed chrysanthemums grow
very well in Uganda’s climatic conditions (Uganda,
UFEA 2007).
Currently, the flower and cuttings sector
comprises 20 enterprises covering more than 200
hectares of land and producing over 40 varieties
of flowers (Uganda, UFEA 2008). The sector has
grown considerably over the last eight years, at
an average annual rate of 20 percent (Uganda,
UEPB 2007). In 2007, total investment in the
sector, both local and foreign, was estimated
at over US$60 million (Uganda, UIA 2007). The
flower sector has also emerged as an important
non-traditional export earner and a major
employer. About 6 500 persons (mostly women)
are employed in the flower industry or 325
133
UGANDA