Tag Archives: psfu

Uncovering Government Support for Entrepreneurs. The case of the Matching Grant Facility


Have you ever walked into a clinic only to find shelf after shelf stacked with dusty discoloured files of patients’ files? Well I have, in some cases they are even tied together with rubber bands and piled sometimes according to alphabetical order.

As someone with a technology background, this scene always makes me uncomfortable to the extent that I have been forced to engage some of the staff at these clinics over this matter.

In 2006, Mr. Wilson Kutegeka wrote the first line of code for ClinicMaster software whose primary purpose was to reduce the waiting time for patients when they go for treatment at a hospital or clinic.

Starting off simple and struggling to gain customer confidence, his team was able to overcome numerous hurdles to grow their business from scratch. However, like is typical of most start-ups in Uganda, business performance is always aligned to the direction where the founders have the greatest expertise. A strong programming background would guarantee a start-up to have a very good software product but the lack of a marketer on the team implies a dismal ability to market the wonderful software product.

Despite having existed for a number of years, one of the greatest challenges ClinicMaster faced was the lack of institutional systems and a corporate identity. Matters were exacerbated by the fact that they didn’t even know how to address these challenges. During a Netherlands Trust Fund (NTF III) workshop, a representative from the Private Sector Foundation of Uganda brought to the participants’ attention the existence of a Matching Grant Facility (MGF) which supports businesses in specified areas by availing counterpart funding as well as facilitating access to expertise.

Without hesitation, ClinicMaster chose to move in for the ISO 9001:2008 certification as well as Branding support. Having successfully applied, they received support for both aspects.

Talking to Mr. Kutegeka Wilson, one of the founders, he intimated that while the project implementation of the MGF was so involving and sometimes strenuous, the benefits accrued as a result, have been amazing.

Knowledge of the staff about the business increased and they were able to align it to the company’s objectives. Today, the new identity is consistent with the company’s communication strategy. There is also a notable improvement in internal documentation of tasks as well as a faster response to clients’ concerns.

Of the ninety (90) installations in various clinics and hospitals across the East African region, ten (10) of them have been acquired after the MGF support. Company revenue has also grown with the bulk of it coming from the most recently acquired clients like Lacor Hospital, Lubaga Hospital, Mildmay among others.

The Matching Grant Facility (MGF) that has since run its last call was open to any formally registered business in Uganda with a genuine interest to improve its competitiveness. As opposed to applying for it without knowing exactly what is needed, I greatly advise anyone applying for a grant of this kind to first carefully scan your challenges as a business and then apply for this facility to address those areas that it supports. As an example, it is unlikely that the facility supports buying machinery in most cases.

Taking up an MGF facility is like having an invisible business partner, who will not only invest in your business but rather will constantly monitor and check on you in terms of how to best use an investment meant for a specific task,” states Wilson Kutegeka.

The Matching Grant Facility is a subcomponent activity under the Competitiveness and Enterprise Development Project (CEDP). Do not be held back waiting for the ever elusive angel investors, you can grow your business or even make it more attractive for potential investors by taking advantage of the resources that are readily available in government grants like the MGF.

James Wire is a Business and Technology Consultant based in Kampala, Uganda
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From Subsistence to Commercial Farming. Smallholder farmers at crossroads


Muniru, a rice farmer from Leresi in Butaleja district has been growing rice for over fifteen years. He however doesn’t know why he’s still a poor man. His story was no different from that of other farmers I met during a Rice Value Addition training organised by The Pearl Foundation for Children and Widows supported by the Skills Development Facility (SDF), a project under the Private Sector Foundation of Uganda (PSFU).

As urban elites, we tend to have a lot of theories on how to transform our largely peasant dominated small holder farming population into a more prosperous one. Unfortunately, until we get to understand the psychology of these farmers, we shall keep shooting off target with our noble but poorly thought out solutions.

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Sorghum crop

Over the past twenty years, the ever growing urbanisation and industrialisation has led to a vast increase in the demand for all types of crops including those that were never considered cash crops three decades ago. Produce like cassava, simsim, soya beans, millet, groundnuts and rice are now leading cash crops for most farmers.

Among the over one hundred farmers I had a chance to train in this PSFU initiative, all of them confessed to selling off at least 85% of their produce. This got me to realise that these farmers are actively delving into commercial farming.

 

If they are earning money, why then do they still lament about poverty?

My overall conclusion was that, these small holder farmers are approaching commercial farming with a subsistence mindset.

Their subsistence mindset is betrayed by the fact that;

  • They freely grow any crop for as long as there is someone to buy it.

  • Growing crops usually takes on the traditional approach that has been tried and tested over the centuries.

  • They spend as little money as possible on growing the crop while expecting to get as much as possible from the produce sale.

  • They sell most of their produce and use the money earned to meet various needs in and outside the home. Little or nothing is put aside for the production process.

  • Little effort is made to store food since it might get spoilt or better still the possibility to earn money from a quick sale outweighs the storage option.

  • There is minimal use of technology.

  • The land farmed is little. Hardly over three acres.

  • There are a lot of post harvest losses due to poor produce handling.

  • They operate as individual farmers right from production to produce marketing.

  • They have little or no understanding of the eventual consumer of their produce.

While I do applaud their move towards commercial farming, I have a lot of discomfort about the way they have chosen to approach it. Many of the mistakes currently being made are borne out of ignorance about commercial farming as well as third party forces like manipulation by the middlemen, poor mobilisation by the local leaders among others.

Any commercial engagement is usually premised on some of the following tenets;

  • A good understanding of the consumer’s expectations

  • A quality offering (service or product)

  • Use of appropriate inputs

  • Supply guarantees

  • Market access

  • Value addition

It’s the lack of knowledge about the foundational requirements of commercial farming that seems to be one of the biggest letdown for these smallholder farmers.

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Eager Learners

These farmers are not fools nor are they resistant to change, they simply do not know better. They exhibit a high affinity for acquiring new knowledge, and this should be closely followed up with implementation support.

 

 

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The elderly study too

Old and young, these farmers will surprise you by their openness to new ways of doing things. I found farmers who were simply comfortable with the way they grew and sold their rice under the belief that there was no better way.

Following a well structured training that traversed the entire process from seed selection through the transplanting process, to weeding, harvesting and eventually produce sale, they were able to identify numerous ways of improving their product offering.

 

elderly

Packaged rice by the farmers

Farmers that had always been content with selling stone filled broken rice to traders at the mills are now empowered both skills wise and psychologically to add value to their produce upto the level of branding and packaging ready for the eventual consumer. 

Using this experience, I now realise that efforts aimed at improving farmer livelihoods especially under the various wealth creation programs that we are bombarded with need a shake up.

An approach that does not focus on merely availing free inputs to farmers but goes ahead to integrate tailored trainings and mindset change is likely to deliver much better results.

Right now, my challenge has graduated from making these farmers appreciate value addition of their rice produce to seeking out urban markets for their high quality graded rice.

Thanks to the World Bank funded PSFU project, I have had a chance to contribute to the betterment of farmer livelihoods through this Pearl Foundation for Children and Widows initiative.

James Wire is a Small Business and Technology Consultant

Blog: wirejames.com

Twitter: @wirejames

Email: lunghabo (at) gmail (dot) com