Attachments
EXECUTIVE SUMMARY
Uganda remains the largest refugees’ destination in Africa, with only Lebanon and Jordan topping the number at the world stage, owing to her open-door refugee policy.
It is recorded that 1,411,794 refugees had settled in the country as of January 2018 with the majority from South Sudan and DRC, yet continuing episodes of civil strife perpetuating instability in the neighborhood is a precursor for increasing influxes.
However, the presence of refugees in the country has increased competition with the host communities for resources and resulted in negative economic, social, and environmental impacts, such as rising food and commodity prices, increasing food insecurity, the depression of local wage rates, increasing environmental degradation due to high pressure on biomass to meet energy and construction needs; as well as limited livelihood opportunities, among others. These negative shocks exacerbate vulnerability for the refugee-hosting areas. Although the refugees are provided with humanitarian assistance by the UNHCR and its implementing partners, including food aid and other necessities, this is not sustainable. To the contrary, this one-sided assistance causes tension between the host and the refugee communities. Enhancing the productive capacities and coping mechanisms of the host populations is seen as an important step for safeguarding a very-much-needed asylum space for refugees among the host communities. Thus, the Development Response to Displacement Impacts Project (DRDIP), sought to embark on Markets and Value Chain Analysis in a bid to get a clear and better understanding of the appropriate economic systems and structures to build upon existing markets and businesses, thereby sustainably engaging both the host and refugees communities. Against this background, Kilimo Trust (KT) was commissioned by the World Bank and Office of the Prime Minister, to support the project team to undertake this study.
The study took on a multipronged dimension, spanning through three phases, comprising; Inception, which teased out the scale and nature of the assignment, highlighting the expected deliverables; The scoping study in the pilot district of Kyegegwa, identified the existing livelihoods and value chains that were then prioritized and validated; and the comprehensive Market and Value Chain Assessment that was conducted on the highly ranked value chains.
The objectives of this study were to: (1) Map actors and their roles along the selected value chains;
(2) Determine profitability of enterprises at each level of the selected value chains; (3) Estimate the number of jobs at each level of the selected value chains; (4) Identify constraints and opportunities for each value chain; and (5) Recommend strategic areas to invest for each value chain. The study activities involved; Secondary Literature Review and Primary Data Collection through FGDs at District,
Sub-counties and Community Level Meetings, coupled with Key Informant Interviews while employing participatory approaches.
Qualitative and quantitative primary data was collected for value chain actors, their characteristics, and area of operation mapped out, including costs of production and trade. The data was analyzed with NVivo 2011 and SPSS 2016 to generate frequencies, proportions and totals. Profitability was assessed at each value chain node using Gross Margins, Share of Value, Net Present Value, and Payback Periods.
A value chain framework was used to estimate the jobs created in the various nodes of the chain and to analyze the impact of addressing issues and opportunities in the chain on the number of jobs. Jobs were estimated based on full-time equivalent (FTE) units with 8 hours per day, 26 days a month, and 12 months a year totaling 312 days per year - about 2,496 hours a year at 8 hours of work per day.