Bean Marketing in Uganda - Uganda Strategy Support Program Notes

they may be recycled for much longer time and hence much less desirable to profit
motivated private seed companies. This makes their demand low and hence possible loss
for maize OPV and self-pollinated seed sellers. Further research is needed to determine
the feasibility and profitability of producing and marketing maize OPVs and self-
pollinated seeds by the informal sector. It would be interesting to study the role of
NGO’s and CBO’s in promoting production of maize OPV’s and self-pollinated seeds at
community level.
This research shows that input trading is a profitable business, especially to importers and
wholesalers. For each shilling invested the importer receives a Marginal Rate of Return
(MRR) of Ush 0.20 as compared to Ush 0.17 for wholesalers and 0.04 for retailers. A
high MRR for importers and wholesalers implies that competition at their level is still
low due to limited participation of large traders in input marketing. However, for
retailers, a low MRR implies a high level of competition and hence lower profit and
equally lower consumer price.
Majority of input traders started their businesses using own funds. The unavailability of
loans places limits on young entrepreneurs wishing to enter the input market. A number
of NGOs and CBO’s have been offering credit to small entrepreneurs in Uganda. This
has improved the credit availability in less developed regions of the country, i.e. northern
region. It would be prudent for the government and civil societies in Uganda to
encourage and facilitate disadvantaged groups, for example women, to participate in the
expanding input trading. The government however needs to monitor and regulate the
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