ADJUMANI DISTRICT INVESTMENT PROFILE

Uganda DISTRICT

| Figure 1: Map of showing the location of

2 ADJUMANI District Investment Profile SNAPSHOT ONADJUMANI

Geography Location West Neighbors Moyo, , Yumbe, area 3,128 Km2 Arable land area 1,455 Km2

Socio-Economic Characteristics Population (2014 Census) 225,251 Refugees and Asylum seekers (April 2017) 211,749 Languages Madi, Lugbara, Acholi, Kiswahili, English Main Economic Activity Agriculture Major tradeables Fish, Sweet potatoes, Cassava, and Maize Market target 71 million, including DRC and

Infrastructure and strategic positioning Transport network Road network, water transport on R.Nile Communication: MTN, Airtel, Africel, UTL, the internet

GEOGRAPHY

ÂÂAdjumani is one of the districts ÂÂIt has an average altitude of in the North-Western region of 1,200 metres above sea level Uganda. It is bordered by Moyo and a total area of about 3,128 district in the North, Arua and Km2 of which the land area is Yumbe in the west, and Amuru 3,081.2Km2. District in the south and east.

ADJUMANI District Investment Profile 3 DEMOGRAPHY

ÂÂThe population of Adjumani factor to consider in promoting district was 225,251 people of investment opportunities which whom 116,953 (51.9%) were engage large numbers of wom- females and 108,298 (48.1%) en and the youth. males. ÂÂAdjumani is one of the major ÂÂThe general situation, in the refugee hosting districts in Northern region and the Nation, Uganda. By 2016, the total pop- of the majority of the population ulation of the district stood at being young, dependent persons 228,000, out of whom 138,471 of 18 years and below was also were refugees. Over four years true in Adjumani accounting for the refugees and asylum seekers around 63.6%. The population of population has increased sub- potentially active income gener- stantially, accounting for almost ating category as entrepreneurs the same size as the local and employees (that is 20 to 59 population. By the first quarter years) stands at 33%. The active of 2017, the refugee population age category of the population in Adjumani district alone had is 57.6 % female against 42.4% reached 215,312, as shown in male. the graphxx. The refugees in Adjumani are mainly from South ÂÂThe women in Adjumani are Sudan and are of diverse ethnic socially empowered to actively backgrounds; Dinkas, Kuku, Nuer, engage in income generating Kakwa, Madi, and Siluk. They enterprises which is a strong have some similar ethnicity with | Population Trends in Adjumani the locals who are Acholi, Kuku, 250,000 Madi and Lugbara. 200,000 ÂÂThe social characteristics are that in the refugee camps more 150,000 families are headed by women 100,000 (around 70 %) and 49% of the families are large (between 6 50,000 -10 people), making the refugee 0 communities highly vulnerable. 2014 2015 2016 2017 Census Total Population Refugee Population

4 ADJUMANI District Investment Profile ÂÂRefugees generally depend on humanitarian assistance to meet their basic needs. A large percentage of them (47%) are involved in economic activi- ties commonly farming, retail business and working a casual labour to generate income. ÂÂFrom this large number of active | Adjumani Town refugees, it may be assumed that sufficient economic scope and human capabilities exist for the refugees to exploit to gain social-economic independence.

| A specialty lodge in Adjumani

| Adjumani refugee settlement

ADJUMANI District Investment Profile 5 MAIN ECONOMIC ACTIVITIES

ÂÂMore than 70% of the Adjumani Sweet potatoes, Cassava, and population is fully occupied Maize. With the total production in peasant farming including volume of 177,175 metric tonnes crop and livestock farming. The of major crops1, Adjumani has a remaining population (around strong agricultural raw material 30%) are mainly in salaried em- supply base for value adding ployment and other non-agricul- agro processing industries. tural activities such as commod- ÂÂIn addition, different livestock: ity trade, boda boda transport cattle, goats, sheep and pigs, are business, market vending, petty reared in the district. The 2008 trading and services. Census of Agriculture reported ÂÂMost farmers are smallholder the number of major livestock who grow both cash and food types shown in the table below: crops. The crops grown include: Maize, Beans, Millet, Simsim, | Table showing the number of Livestock by type Mangoes, Avocado, Cassa- va, Matooke, Coffee, Tobacco, Type Number Groundnuts, Rice sweet potatoes, Cattle 36,441 beans, and groundnuts. The Goat 23,819 most widely grown crops are Sheep 5,750 Pigs 3,984 Source: Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), and Uganda Bureau | Main cash crops of Statistics Plantain, Finger Banana Millet 0.70 ÂÂThe rearing of poultry, mainly 0.12 layers and broilers, though still Maize 26.68 moderate is reported to be expanding rapidly. Cassava 29.22 ÂÂFurthermore, fishing is a major income earning economic activ- ity in Adjumani. The number of fish catch in the district in 2011 Sorghum weighed 359, 000 kilograms, 11.59 valued at Shs. 857 million. Sweet Potatoes Rice 31.38 0.32 1 UBOS Statistical Abstract 2016

6 Investment Profile ÂÂAgricultural activities in Adju- mani are characterized by: being rain fed and heavily dependent on nature for soil fertility; car- ried out on fragmented plots of land (on average 2 acres in size); use of rudimentary methods without application of relevant scientific knowledge or modern technology which are important for improving productivity. The production system is subject to the effects of unreliable weather, pests and diseases. Agriculture modernization is an opportunity for the people of Adjumani to break out of poverty and start creating wealth.

| Adjumani landscape

Arua District Investment Profile 7 WHY INVEST IN ADJUMANI DISTRICT?

Abundant natural ÂÂAdjumani has ample sources resources of water for production. They include open water bodies Adjumani has sufficient land for ag- comprising 2.5% of total land ricultural production. Its total area area with River Nile (Albert Nile) is 3,128.2 sq. km and 1,455 Sq. km. being the major feature of the (46.5%) is arable land. district. Other prominent rivers ÂÂThe climate is tropical in nature include Itirikwa, Esia, Ayugi, with moderate rainfall and tem- Tete, Adidi and Zoka. In Adropi perature ranging from 19-36oC. sub-county there are prominent seasonal streams like Assisi, ÂÂThe soils are generally fertile Adropi, Robidire, Oliji, Ariwa, of medium to high productivity, Minia, Surumu, Ura eyi that drain with Ofua sub-county having into river Nile. The district is the richest soils. These natural also endowed with a hot spring, conditions are conducive for located at Amuru in Pakele agriculture. sub-county. The groundwater resource is abundant. However, Lucrative Investment opportunities in some areas it is very difficult exist here in Adjumani. We have to drill boreholes. a ready opportunity in Sugar processing. Abundant land for this project is available in Zoka Area. A Enabling environment huge market will be tapped in South “ ÂÂAdjumani has great potential as Sudan, DRC and internally in Uganda. This investment will attract out- an investment location which growers some of whom will be the Government is committed to refugees. It will provide employment unlock through prioritized and to a large group of the surrounding communities. strategic infrastructure develop- ment covering transport, energy, As the Local Government is engaged in active investment promotion ICT and water for production. efforts, we invite investors to discuss with us this prime investment, and others such as Rice and Maize milling. Mr. Moses M. Dalili, Deputy Chief Administrative Officer, Adjumani Local Government

8 ADJUMANI District Investment Profile Transport infrastructure ÂÂThe district has a murram road ÂÂWithin the Second National De- network linking most parts of velopment Plan (NDPII) 2015/16 the district. These roads provide – 2019/20, Government plans to access to the rural agricultural tarmac the district’s one major areas. They are regularly main- road that starts from Atyak and tained by the Local Government. passes through Adjumani and Adjumani and Moyo districts are Moyo towns to Afoji, at the linked by ferry services across the South Sudan border. This road is River Nile. very strategic in enabling trade Energy infrastructure between three districts Gulu, Ad- ÂÂGovernment has focused on mas- jumani and Moyo to the Sudan sive electricity generation and boarder, supply nationwide with the aim of significantly reducing the over- | Laropi ferry - Routes between Moyo all unit cost and making it readily and Adjumani districts available to investors. Adjumani was connected to the national grid in 2014. Local government structures and their role in investor support ÂÂThe local government structures integrate the political structure under the district Chairman and the technical structure under Chief Administrative Officer (CAO) to provide the necessary clout and expertise for effective service delivery. ÂÂInvestors are assisted by the dif- ferent departments in the local government depending on the issues at hand. UIA is promoting the One Stop Centre concept at the district level where the District Commercial Officer (DCO) | Uganda Electricity Distribution Company Lim- is the facilitator of new inves- ited (UEDCL) technicians installing electricity tors, to fulfil all required steps in distribution lines investment start up.

ADJUMANI District Investment Profile 9 ÂÂUganda Investment Authority The incentive structure is cur- (UIA) has further embarked on rently under revision. For details, establishing District Investment refer to www.ugandainvest. Committee (DICs) to spearhead go.ug/downloads/ investment attraction, facilita- Category 1- Initial Allowanc- tion and aftercare in different es: Initial capital expenditures sectors. The DIC is a 10 member which are deductible once from task force comprising five local the Company’s Income: government representatives: The District Chairman, the CAO, the » 75% of cost of plant and DCO, the District Planner and the machinery for an investment Lands officer while the other 5 located outside , members are chosen from the Entebbe, Jinja area; private sector. » 100% of scientific research Attractive Incentive regime expenditure; ÂÂUganda’s incentive package » 100% of training expendi- for both domestic and foreign ture; investors provides generous »» 100% of mineral exploration terms, particularly for medium- expenditure; and long-term investors whose projects entail significant plant »» 25% of start-up costs are and machinery costs. Below is a deductible over four years. snapshot of selected incentives. WHY INVEST IN ADJUMANI DISTRICT? WHY INVEST

10 ADJUMANI District Investment Profile Category 2- Annual Deprecia- Category 3 - Other Annual Depre- tion Allowances: The following ciation Allowances include: allowances, under declining bal- »» 5% on Industrial Buildings, ance method, are provided for Hotels & Hospitals; assets as specified in 4 classes below: »» 20% on Farming - General farm works; »» Class I: 45% on Computers & Data handling equipment; »» 20% on Horticultural Plant and Construction of » Class 2: 35% on Automobiles, » Green-houses using straight Construction and Earth mov- line depreciation ing equipment; ÂÂIn addition to the above incen- » Class 3: 30% on Buses, Goods » tives, there is a zero rate of im- Vehicles. Tractors, Trail- port duty on plant and machinery ers, Plant & Machinery for as well as a uniform corporate farming, manufacturing and tax rate of 30%. mining; ÂÂThe depreciation allowances, » Class 4: 20% on railroad cars, » plus the deductible initial capital Locomotives, Vessels, Office allowances are provided without furniture, fixtures etc. discretion to eligible investors in order reduce their taxable income during the crucial early years of a project. The investor therefore keeps a high proportion of its cash flow and income for further investment. WHY INVEST IN ADJUMANI DISTRICT? WHY INVEST

ADJUMANI District Investment Profile 11 INVESTMENT OPPORTUNITIES IN ADJUMANI DISTRICT

Investment in the tourism Investment in youth sector technical skills and capability enhancement Adjumani is known for a wide range of tourist attractions. For example, The increasing population of the the East Madi Wildlife Reserve younger persons occurring along- boasts of flora and fauna similar side the lack of post-secondary to Murchison Falls National Park school institutions, is one of the and recently awarded as a man- factors that continue perpetuat- agement concession to a private ing the low skills levels and job operator, who plans to develop opportunities. Tertiary institutions the reserve. The Reserve is under are demanded to build the capa- overall ownership and management bilities of young people and give of Government of Uganda through them confidence to start business Uganda Wildlife Authority. There are enterprises, a multiplier for job also attractive unique landscapes creation. Such Technical centres and rock formations along R. Nile should impart modern skills in pro- on the Adjumani side. Currently, fessions such as: Vehicle Mechanics, there exist limited facilities for Engineering, Construction, Nursing, visitors. Catering, Tourism and Hotel Man- agement, Carpentry, Fashion Design, Pottery, Molding, Art and Craft. This investment should effectively re- spond to the demand for technical and employable skills that em- ployers require, by offering quality vocational skills to the youth.

12 ADJUMANI District Investment Profile | Albert Nile

Investment in agricultural Investment in tree planting services providing and tree nurseries: productivity-enhancing technologies ÂÂDeforestation and environmen- tal degradation in the whole of There are opportunities to provide West Nile region has resulted productivity enhancing technologies, from tree cutting for firewood, advisory services and financing of opening land for crop cultivation agricultural production, including: and using poor farming meth- ÂÂBuilding irrigation systems and ods, overgrazing herds of cattle, water reservoirs using the water goats and sheep. The pressure of resources such as River Nile, to increased population of frequent avail water for production and migrants from South Sudan and mitigate the risks of crop failure Eastern Congo, fleeing from civil during unforeseen droughts. and political conflicts in those countries has seriously contrib- ÂÂMultiplication and supply of uted to this situation. Invest- high yielding and disease free ment in large scale tree planting and drought resistant seeds. and large scale tree nurseries is ÂÂSupply of appropriate fertilizers. an opportunity for substantial income generation, reforestation and revival of the environment. This will in turn create jobs that can diversify sources of income for the local communities.

ADJUMANI District Investment Profile 13 SELECTED EXISTING INVESTORS IN THE DISTRICT

Health facilities: Financial services: ÂÂAdjumani has 34 Health units ÂÂThese include; Stanbic Bank and categorized into two hospitals, Opportunity Bank and 32 health centres (IV, III and II). 31 of these facilities are Education services: government owned and three The District boasts of 65 Gov- are private. Existing investments ÂÂ ernment owned and 12 private are also in Healthcare services owned schools as reported by such as: dispensaries, clinics and the district Education Office. drug shops.

KEY CONTACTS

Name Position Phone Number Email Mr. Leku James District Chairman 0787930220 [email protected] Mr. Mawejje Andrew Chief Administrative Officer 0772301899 [email protected] Mr. Moini Fred District Planner 0772370866 [email protected] Ms. Agnes Bipio District Commercial Officer 0777843206 [email protected] Mr. Leku James LCV Chairman 0787930220 [email protected]

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14 ADJUMANI District Investment Profile ADJUMANI District Investment Profile 15 Mrs. Jolly K. Kaguhangire Mme. Rosa Malango Executive Director, Uganda UN Resident Coordinator/ Investment Authority UNDP Resident Representative

Uganda Layout Design by Grand Brand Ltd Uganda Investment Authority United Nations Development The Investment Centre Plot 22B Programme (UNDP) Lumumba Avenue Plot 11 Yusuf Lule Road P.O.Box 7418, Kampala, Uganda Nakasero P.O.Box 7184 Tel: +256-414301000 Kampala, Uganda Fax+256-414342903 Tel: +256-417112100 http//www.ugandainvest.go.ug Fax: +256-414344801 www.undp.org