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| 'The future should be bright': Katine farmers ready to fend for themselves | 'The future should be bright': Katine farmers ready to fend for themselves |
| (about 1 hour later) | |
| Anna Grace Amayo is a remarkable farmer. On her smallholding, tucked at the end of a 4km bushy footpath in Katine Ojama parish, she rears pigs, turkeys, goats and chickens – and grows groundnuts, maize and cassava. | Anna Grace Amayo is a remarkable farmer. On her smallholding, tucked at the end of a 4km bushy footpath in Katine Ojama parish, she rears pigs, turkeys, goats and chickens – and grows groundnuts, maize and cassava. |
| Her newly built piggery, home to 21 pigs, is clean, and just outside the perimeter chain-fence sits a well from which water is drawn using a locally made pedal pump. The water flows through plastic hosepipes for washing and drinking. | |
| Amayo, 47, a mother of nine, is a member of her village savings and loans association and of the Katine Joint Farmers Association Co-operative (Kajofaco). She is one of the beneficiaries of a £60,000 fixed deposit fund, paid for by Guardian readers’ donations from its 2013 Christmas appeal. | Amayo, 47, a mother of nine, is a member of her village savings and loans association and of the Katine Joint Farmers Association Co-operative (Kajofaco). She is one of the beneficiaries of a £60,000 fixed deposit fund, paid for by Guardian readers’ donations from its 2013 Christmas appeal. |
| “I took a loan of 2m shillings [£390] in July and used the money to complete the piggery unit and buy the pigs,” Amayo says. She gave the rest of the money to her husband for his motorcycle garage at Katine trading centre. They are working together to repay the loan in monthly instalments of 240,000 shillings. | “I took a loan of 2m shillings [£390] in July and used the money to complete the piggery unit and buy the pigs,” Amayo says. She gave the rest of the money to her husband for his motorcycle garage at Katine trading centre. They are working together to repay the loan in monthly instalments of 240,000 shillings. |
| The farmers’ co-operative now has 792 members. It is the remaining component of the Katine development project, which was launched in 2007, funded by Guardian readers and Barclays, and implemented by the NGOs Amref Health Africa, Farm Africa and others. At the start of the project, Katine, a sub-county in north-east Uganda, had some of the worst socio-economic indicators in the country. | The farmers’ co-operative now has 792 members. It is the remaining component of the Katine development project, which was launched in 2007, funded by Guardian readers and Barclays, and implemented by the NGOs Amref Health Africa, Farm Africa and others. At the start of the project, Katine, a sub-county in north-east Uganda, had some of the worst socio-economic indicators in the country. |
| Kajofaco runs three enterprises: selling agricultural and water-harvesting products and equipment, trading in produce, and loaning money to its members. But it is the last that has rejuvenated the co-operative, aided by the Christmas appeal donation. In January 2015, 253m shillings was deposited at the Soroti branch of Centenary Bank, as security for loans taken by Kajofaco. The co-operative has borrowed half of that amount – money it lends to members like Amayo and uses to buy their produce. | Kajofaco runs three enterprises: selling agricultural and water-harvesting products and equipment, trading in produce, and loaning money to its members. But it is the last that has rejuvenated the co-operative, aided by the Christmas appeal donation. In January 2015, 253m shillings was deposited at the Soroti branch of Centenary Bank, as security for loans taken by Kajofaco. The co-operative has borrowed half of that amount – money it lends to members like Amayo and uses to buy their produce. |
| Kajofaco’s 1,000-tonne produce store at Katine is buzzing, with farmers and traders delivering produce. They haggle over price and quality over the noise of a petrol-powered groundnut-shelling machine. | Kajofaco’s 1,000-tonne produce store at Katine is buzzing, with farmers and traders delivering produce. They haggle over price and quality over the noise of a petrol-powered groundnut-shelling machine. |
| “When I came, we were just gambling, with very little money from the share capital, which was barely 12m shillings,” says Mary Aleto, Kajofaco’s secretary manager for the last 18 months. “People would bring in commodities they wanted us to buy, but we kept sending them away because we had no money.” | “When I came, we were just gambling, with very little money from the share capital, which was barely 12m shillings,” says Mary Aleto, Kajofaco’s secretary manager for the last 18 months. “People would bring in commodities they wanted us to buy, but we kept sending them away because we had no money.” |
| Loans have been used to expand farms, boost businesses, pay school fees, buy motorcycles and for building projects. | Loans have been used to expand farms, boost businesses, pay school fees, buy motorcycles and for building projects. |
| “Katine secondary school recently borrowed 3m shillings, which they used to raise the walls of a new classroom block,” says Aleto. “I was advising them that when they finish paying, they can come for another loan for roofing.” | “Katine secondary school recently borrowed 3m shillings, which they used to raise the walls of a new classroom block,” says Aleto. “I was advising them that when they finish paying, they can come for another loan for roofing.” |
| Aleto’s salary and those of an accountant and a shop attendant are paid by Farm Africa. The NGO has also provided office furniture and equipment, and fitted the produce store with temperature-regulating vents and meters so staff can measure the moisture content of produce. | Aleto’s salary and those of an accountant and a shop attendant are paid by Farm Africa. The NGO has also provided office furniture and equipment, and fitted the produce store with temperature-regulating vents and meters so staff can measure the moisture content of produce. |
| David Ogwang, Farm Africa’s representative in Katine and the only remaining member of staff from the initial project, says the NGO’s support included training for the board and staff in co-operative governance, financial management and business skills. It is all meant to enable Kajofaco to stand on its own when Farm Africa leaves in February. | David Ogwang, Farm Africa’s representative in Katine and the only remaining member of staff from the initial project, says the NGO’s support included training for the board and staff in co-operative governance, financial management and business skills. It is all meant to enable Kajofaco to stand on its own when Farm Africa leaves in February. |
| “There are prospects for the co-operative and there is determination to propel it to the next level,” says the board chairman, Tom Erowu-Ekinu. He talks of possible projects to improve the profitability of the co-operative such as maize milling and a pig-breeding centre. He also praises Farm Africa for its support, which has included registering Kajofaco with the East Africa Grain Council. This, he says, could ultimately link Kajofaco to lucrative world markets. | “There are prospects for the co-operative and there is determination to propel it to the next level,” says the board chairman, Tom Erowu-Ekinu. He talks of possible projects to improve the profitability of the co-operative such as maize milling and a pig-breeding centre. He also praises Farm Africa for its support, which has included registering Kajofaco with the East Africa Grain Council. This, he says, could ultimately link Kajofaco to lucrative world markets. |
| But with Farm Africa leaving, Kajofaco’s future hinges on profitability. Ultimately, the co-operative needs to make enough money to pay staff and incentivise voluntary workers, which costs about 2.5m shillings a month, in addition to small operational costs. | But with Farm Africa leaving, Kajofaco’s future hinges on profitability. Ultimately, the co-operative needs to make enough money to pay staff and incentivise voluntary workers, which costs about 2.5m shillings a month, in addition to small operational costs. |
| Two factors appear critical: reducing Kajofaco’s interest rate and being able to buy produce directly from more farmers. Both Aleto and Ogwang hope Centenary Bank can be persuaded to lower its lending rate, so that Kajofaco, in turn, can lower the interest rate paid by borrowers. The bank charges 15% annually, and Kajofaco 2% monthly. | Two factors appear critical: reducing Kajofaco’s interest rate and being able to buy produce directly from more farmers. Both Aleto and Ogwang hope Centenary Bank can be persuaded to lower its lending rate, so that Kajofaco, in turn, can lower the interest rate paid by borrowers. The bank charges 15% annually, and Kajofaco 2% monthly. |
| “What we are going to do as the period for the fixed deposit ends [in December 2016] is to renegotiate with the bank … because the ultimate goal is to make sure that the final farmer actually benefits,” Ogwang says. | “What we are going to do as the period for the fixed deposit ends [in December 2016] is to renegotiate with the bank … because the ultimate goal is to make sure that the final farmer actually benefits,” Ogwang says. |
| If Kajofaco can offer a lower rate to farmers, it would allow them to open up more land and increase production. In a country where most agriculture depends on increasingly unpredictable weather, making loans attractive to crop farmers is seen as key. | If Kajofaco can offer a lower rate to farmers, it would allow them to open up more land and increase production. In a country where most agriculture depends on increasingly unpredictable weather, making loans attractive to crop farmers is seen as key. |
| Annet Nandelenga, Centenary’s branch manager in Soroti, says the fixed deposit fund is working well so far, with Kajofaco meeting its loan obligations. But she doubts the lending rate can be lowered. “When we give agricultural loans, we include a grace period of several months. Now if you reduce the rate further, what will be [the bank’s] take-home?” Nandelenga says. | Annet Nandelenga, Centenary’s branch manager in Soroti, says the fixed deposit fund is working well so far, with Kajofaco meeting its loan obligations. But she doubts the lending rate can be lowered. “When we give agricultural loans, we include a grace period of several months. Now if you reduce the rate further, what will be [the bank’s] take-home?” Nandelenga says. |
| Another critical factor is the lack of a vehicle to collect produce. The distance between villages and the produce store can sometimes result in members selling to local middlemen – most of whom end up reselling to Kajofaco, but it reduces the co-operative’s profit margin. | Another critical factor is the lack of a vehicle to collect produce. The distance between villages and the produce store can sometimes result in members selling to local middlemen – most of whom end up reselling to Kajofaco, but it reduces the co-operative’s profit margin. |
| But Nelson Epongu, who chairs Kajofaco’s supervisory committee, remains optimistic. “The future should be bright. People have now started owning the co-operative. They see it as their own.” | But Nelson Epongu, who chairs Kajofaco’s supervisory committee, remains optimistic. “The future should be bright. People have now started owning the co-operative. They see it as their own.” |