ADJUMANI DISTRICT Investment Profile

GeographyLocation West NileNeighbours Moyo, Obongi, Amuru, South SudanDistrict area 3,128kmArable land area 1,455kmAreas of water bodies 46.8kmDistance from Kampala 470kmSocio-economic characteristics

Population (estimate as of 2019) 439,400Host population 232,400Refugees and asylum seekers (2019) 207,500Languages Madi, Lugbara, Acholi, Kiswahili, Kuku, Arabic Dinka, Nuer and

English.Main economic activity Agriculture, transport, hospitality, fi shing, mining, trade and

cottage industries.Major tradeable Cassava, maize, simsim, soya beans, groundnut, beans, rice,

cotton, coff ee, banana, sweet potato, fruits (oranges, lemon, mangoes and watermelon), service industry. Livestock farm-ing (goats and cattle rearing, piggery, poultry farming, beef and milk production).

Infrastructure and strategic positioning

Transport network Major road network, water transport on the Nile, air transport

Telecommunication network MTN, Airtel, Africel, UTL, internet

BRIEF DISTRICT PROFILE

Transport TradeMiningFarmingLivestock Farming

Fishing

MAIN ECONOMIC ACTIVITY

ACCESSIBILITYCourtesy Photo

Geography

• Adjumani is found in the north-eastern region of Uganda and is bordered by Moyo District in the north, Arua and Yumbe in the west, and Amuru District in the south and east.

• The average altitude is 1,200 m above sea level and a total area of 3,128 km² of which the land area is 3,081.2 km.

Demography

• The population of Adjumani district is estimated at 439,400 as of 2019; 228,488 (52%) females and 210,912 (48%) males. Further breakdown of the total population shows that 232,400 are nationals and 207,500 are refugees.

• The majority is young and dependant with 60% from the ages of 0-17 years, 20% from 18-30 years, 17% between 31-59 years and 3% above 60 years.

• The refugees in Adjumani are mainly from South Sudan with diverse ethnic backgrounds; Dinka, Kiki, Nuer, Kakwa, Madi and Siluk. They share similar ethnicities with the locals who are Acholi, Kuku, Madi and Lugbara.

• Women head majority of the families in the refugee camps (70%) and 49% of the families have more than six to 10 family members. This results in the refugee communities being highly vulnerable.

Main economic activity

• More than 80% of the Adjumani popu-lation is engaged in peasant farming as the main economic activity. The major-ity of the farmers still use rudimentary methods with minimum modern tech-nology, hence aff ecting productivity. The remaining 20% are mainly in sal-

PHOTO CREDIT: Courtesy Photo

PHOTO CREDIT: Courtesy Photo

Strategic location | Enabling environment | Abundant natural resources | Tourism potential

Administrative support | Attractive incentive regimes

Why invest in Adjumani District?

232,400 are nationals and 207,500 are refugees

aried employment and other non-agricultur-al activities such as commodity trade, boda boda transport, market vending and petty trading and services.

• Farmers in the district are engaged in both cash and food crops. Crops cultivated in-clude; cassava, sweet potatoes, maize, sim-sim, soya beans, groundnut, beans, rice, cot-ton, coff ee, banana, fruits (oranges, lemon & mangoes), beekeeping and honey process-ing. Adjumani has a comparative advantage in agricultural raw material supply base for value-added agro-processing industries.

• Mining is another upcoming sector in Adju-mani with the population engaging in sand

mining, stone quarrying, marrum, timber ex-traction and natural grass harvesting.

• The fi shing industry has increasingly become an income-earning activity in Adjumani with the community involved in capture fi sheries and aquaculture.

• Livestock farming (goats and cattle rearing, piggery, poultry farming, beef and milk pro-duction) is also on the rise in Adjumani.

• Additional economic activity in the service industry includes transport, hotel manage-ment, schools, tours, health services, training institutes, games and sports, media.

Refugees comprise much of the population Adjumani district

Strategic location

• Adjumani has the potential to become an economic hub with good infrastructure bordering South Sudan. It’s the highway to two upcoming cities, Gulu and Arua, with an abundant labour force, especially youth and women.

• The Government of Uganda is committed to unlocking the potential of the Northern region by prioritizing and strategically developing the infrastructure covering transport, energy, ICT and water for production.

Enabling environment

• Adjumani District has great potential for being an investment location for the Northern region. Government plans tarmac one of the major roads starting from Atyak passing through Adju-mani and Moyo towns to Afoji, at the South Sudan Border. This will enable trade between Gulu, Adjumani and Moyo to the South Sudan border.

• Adjumani was connected to the national grid in 2014, reducing the overall unit cost of power and making it readily available to investors. With access to electric power and a murram net-work linking most districts, there is ready access to the rural agriculture areas for agro-pro-duction.

• Adjumani has a variety of tertiary educational institutions which make it attractive for aff ord-able and semi-skilled labour such as Amelo Technical Institute, Uganda Christian University, Junior Express Institute, Adjumani Mission Training Institute, Action Africa Help Training Center, Nsamizi Training Institute, Adjumani Nursery Teachers College and others.

• Peace and security has been stable in the Northern region from 1980 with Uganda being a signatory to major international agreements with organizations such as the Multilateral In-vestment Guarantee Agency , which ensures a stable investment market.

• Adjumani off ers access to both fi nancial and non-fi nancial institutions, from large banks such as Stanbic, Equity Bank, and KCB to Insurance service providers like UAP, Sanlam and SWICO. Additionally, Adjumani has eight local SACCOs, 150 VSLA, and four micro-fi nance providers.

Administrative support

• A District Investment Committee (DICs) is in place to spearhead investment attraction, facilita-tion and aft ercare in diff erent sectors. The DIC is a 10-member task force comprising fi ve local government representatives: the LCV Chairman, Chief Administrative Offi cer, District Commer-cial Offi cer, District Planner and the Lands Offi cer, while the other fi ve members are chosen from the private sector.

Abundant natural resources

• Adjumani has a total area of 3,128.2 km with 46.5% being arable land for agricultural pro-duction. The arability comes from the medium and high yield fertility soil and the abundant sources of water production, driven from open water bodies comprising 2.5% of the total land area with River Nile (Albert Nile) being the major feature.

• Adjumani has Itirikwa, Esia, Ayugi, Tete, Adidi and Zoka as additional, prominent rivers. Adropi sub-county has seasonal streams like Assisi, Robidire, Oliji, Ariwa, Minja, Surumu that drain into the Nile.

• Adjumani District also features Zoka Natural Forest Reserve and the Elephant Corridor, used for tourist attraction.

Photo Credit: Stock Photography

Attractive incentive regimes

• Uganda’s incentive package for both domestic and foreign investors provides generous terms, particularly for medium- and long-term investors whose projects entail signifi cant plant and machinery costs. For the current incentive structure, refer to the link:

A guide to incentives - exemptions available to the Uganda investors (3rd Edition, 2019).

Since 2014, Adjumani has been connected to the national grid, reducing the overall unit cost of power and making it readily available to investors

PHOTO CREDIT: Stock Photography

Viable investment opportunities in Adjumani District

• Mechanized commercial farming in major crops such as cassava, sweet potatoes, maize, sim-sim, soya beans, groundnut, beans, rice, cotton, coff ee, banana, fruits (oranges, lemons and mangoes).

• Processing of honey and beekeeping.

• The service industry in Adjumani has potential in transport, hotel management, tertiary and vocational schools, health services and training institutes.

• The mineral sector is a growing investment attraction in Adjumani with opportunities in min-ing; sand, stone quarrying.

• The fi shing industry is another major investment opportunity with opportunities in fi sheries and aquaculture.

• Due to vast agricultural land, Adjumani has the potential of setting up a primary and second-ary agricultural industrial park. This will require access to at least 500 acres.

• Renewable energy supply is a major opportunity for rural communities. Distribution of solar home entertainment systems with favourable payback plans, solar irrigation, solar stoves as well as solar threshers.

• Financial services tailored to the needs and requirements of the local communities is a huge opportunity, such as access to tractors, agricultural inputs.

PHOTO CREDIT: Stock Photography

The main products from fruit juice extraction are natural fruit juice and concentrated fruit juice. Other by-products may include fertilizers. Fruit juice extraction as a business will provide a competitive and sustainable market for fruits, and promote value addition and agro-processing industrial growth in Uganda. Fruit juice extraction will also lead to income diversifi cation and increased household incomes. The fruit juice extraction industry in Uganda is dominated by im-ported fruit juice such as Ceres from South Africa, Del Monte and Afi a from Kenya and only few local competitors like Splash (Britannia), Kazire and Harris. With this small number of manufac-turers, there exists a gap between demand and supply given the increasing health-conscious middle-class demographic in Uganda.

Production capacityDaily production capacity is an expected 300 litres of fruit juice, which will translate into 150,000 litres of fruit juice annually with an assumption of 300 working days per year. This level of pro-duction is expected to have tripled by the fi ft h year with annual production reaching 450,000 litres of fruit juice

Setting up Technology will be labour intensive with simple machinery such as pulpers.

Specifi c investment projectFruit processing

PHOTO CREDIT: Courtesy Photo

Capital investment requirementCapital investment item Total cost USDFixed assets 176,780Land 20,000Land concession 15,000Site preparation 5,000Building works and development 80,000Plant contraction 50,000Plant expansion 30,000Production equipment 27,500Generator 2,500Gas 1,000Juice pulper 4,000Water pump 10,000Bottle filling/capping/labellingEquipment 10,000Furniture, equipment andfurnishings 37,280Production tools, implements,Utensils 32,000Office furniture/equipmentand computers 5,000Staff protective wear 280Vehicles 12,000Preliminary expenses 3,500Working capital 58,542Source: Uganda Investment Authority’s SME Business Ideas Handbook 2019/2020 (further details on setting up and the phased investment and viability can be accessed from the handbook).

Some existing successful enterprises in Adjumani

• Fishing Industry (Nile Crocodile Park, Lake Harvest, Yabi, Uku-orine etc.)• Construction (Zawadi, Adulu, Corime, etc.)• Transport (Devine Coaches, Zawadi, Nile Coaches, BTC, Friends).• Value addition (Angu-uwira, Dia, Kumbezio, Esia Mixed Farmers etc.)• Hotels (Zawadi, Ruyo, Lavic, Youth Center, Dubai Resort, Cana, Sabina, etc.)• Private clinics (Victoria Clinic, Discovery Medical Center, Kiristor Medical Center, Vienna Medical

Center, Anzoa Medical Beaureu)• Institutions (UCU, Amelo, Junior Express, Nsamis Training Institute, Adjumani Nursery Teachers

College)

Challenges

• Land opening challenges for commercial production (inadequate and high cost of mechanization).

• Low/inadequate agricultural fi nancial opportunities. • High interest rates on loans for commercial farming (range 2.5%-4% per month).• Poor youth attitudes towards agriculture production. • Poor national road network and poor local bridge connection. • Insuffi cient/low electricity/power distribution and voltage for businesses. • Low/inadequate water for production supply. • Low market structure development despite the potentials.

Cost of doing business

• Commercial rentals per month: UGX 200,000• Labour cost per month: UGX 150,000 • Commercial land – urban plot (15 by 30m): UGX 15,000,000• Rural acreage: UGX 500,000• Transport: Kampala – UGX 50,000; Gulu-Arua UGX 30,000; Elegu UGX 30,000; Juba UGX 80,000 • Accommodation room per night: UGX 40,000• Rental one-room residential per month: UGX 100,000 • Ploughing – ox-plough – one-acre: UGX 100,000; one tractor UGX 150,000 • Boda boda hire per day: UGX 30,000 • Water transport: – ferry – free, boats per person UGX 5,000; luggage average UGX 3,000• Transportation of luggage from Kampala: UGX 15,000• Sand mining: UGX 30,000; transport UGX 80,000• Marrum: UGX 50,000; and transport UGX 80,000 • Hard core: UGX 50,000; and transport UGX 80,000• Bricks per piece: UGX 200; and transport UGX 80,000• Aggregates: UGX 90,000; and transport UGX 80,000 • Labour cost for construction per person: UGX 15,000 per day • Electricity per unit: UGX 500 • Water per unit: UGX 500• Communication: UGX 500 • Cost of advert per day: UGX 30,000 (local radio)

Among existing successful enterprises in Adjumani include the Nile Crocodile Park

PHOTO CREDIT: Stock Photography

DISTRICT CONTACT PERSONS

Name Position Contact Email

Mr. Gabriel Rogers Bwayo Chief Administrative Officer 0781-560-782 bwayogr@gmail.com

Ms. Dipio Agnes District Commercial Officer 0777-843-206 dipioagnes@gmail.com

Mr. Moini Fred District Planner 0772-370-866 akuramoyi@gmail.com

United Nations Development Programme (UNDP)Plot 11, Yusuf Lule Road, Nakasero P. O. Box 7184, Kampala, Uganda. Tel+256417112100/30, +256 414 344801 Email: registry.ug@undp.org Website: www.ug.undp.orgTwitter : @UNDPUgandaFacebook: UNDP UgandaYoutube: UNDPinUganda

The Investment CentrePlot 22B, Twed PlazaLumumba Avenue, NakaseroP.O Box 7418, KampalaTel: +256313-301000Email: info@ugandainvest.go.ug

This investment profile has been developed by Uganda Investment Authority with support from the United Nations Development Programme (UNDP).