Mr. Chairman,
The IFAD President,
Distinguishing Governors and Delegates,
Ladies and Gentlemen,

This week marks yet another great annual occasion where we as Governors convene to evaluate past performance and pave way for IFAD’s continued existence and more efficient service delivery. The Uganda delegation, as always derives great pleasure in actively participating in these discussions. 

My delegation salutes IFAD for the excellent arrangements and pledges commitment to full participation during this 32nd session.

Mr. Chairman,

Every day that passes reminds us of the formidable challenges afflicting mankind.

The past dramatic events have seen the global number of the poor and hungry increasing from 825 million in 1996 to 845 million in 2007 and close to one billion in 2008. This is a complete defiance of the Millennium Development Goals (MDG’s) whose major target was to reduce by half, the number of such destitutes by 2015. While many critics blame climate change and increased prices of fuel and food, there still remain some unanswered important questions that require deep recapitulation.

For example, what could have gone wrong when IFAD and other Organizations were active in the developing countries where the highest disadvantaged numbers dwell and continue to swell?

And how best can the future interventions be designed and targeted for more effective service delivery? There is need to carry out reforms in these organizations to address the new challenges.

Unless such concerns are adequately addressed with utmost urgency, poverty and hunger will continue devastating humanity especially in Sub-Sahara Africa, where three quarters of the population still live in rural areas as smallholder farmers, fishers, herders and gatherers that suffer the ills of poverty and food insecurity most.

Mr. Chairman,

Uganda has enjoyed excellent cooperation with IFAD for almost three decades. Since 1981 when the cooperation was established, IFAD has financed and supported 12 projects totaling about US$ 455 million of which US$ 193.5 million is the IFAD loan component.  The current operational projects are five with a total loan portfolio of about Special Drawing Rights (SDR) 65.02 million. The major thrust of all the projects is to address the challenges of capacity building, value addition, quality assurance and marketing, all aimed at increasing farmers’ incomes and attainment of rural livelihoods. The masterpiece of all is the Vegetable Oil Development Project which is supporting development and production of palm oil in Bugala  Islands of Kalangala District on Lake Victoria. It is unique in that it integrates production with processing and marketing through fostering close partnership between farmers, the private sector and Government. The project in its infancy stage has already created positive economic and social transformation on the islands. When it reaches full production capacity, it is expected to provide income to the rural farmers and save foreign exchange through import substitution in addition to employing many Ugandans.

Besides, its sustainability is unquestionable.

The high flexibility and participatory approach of the IFAD’s supported activities has encouraged integration of indigenous knowledge and upheld complementarity with other ongoing projects and programmes.

This fits well within and supports the Government’s Poverty Eradication Action Plan (PEAP) and Plan for Modernization of Agriculture (PMA). 

Mr. Chairman,

The global paradigm shift from agricultural credit to microcredit has been glorified by many as the best way to reach the rural poor with the badly needed financial services.

However, based on global experience, we find this assertion difficult to either believe or defend. The absence of affordable capital for agricultural mechanization and agribusiness in developing countries is a serious challenge in the entire agriculture value chain. It is a fact that the majority of microfinance institutions in most developing countries especially in Sub Saharan Africa are urban-based, urban-biased and mainly target trade and commerce and not rural agriculture, viewing the sector as a highly risky business. This leaves the majority of the rural poor populations devoid of a source of finance for their activities. Faced with this dilemma, Uganda has been forced to support savings and credit cooperative organizations (SACCOs) and the Prosperity for All Programme, both emphasizing value chain development and agroprocessing at all levels. We trust that with IFAD support, Uganda will be able to deepen and broaden the financial services to avail credit and improve people’s saving and investment culture.

Developing and strengthening institutions, infrastructure, legal and regulatory framework are main areas that will attract greater focus.

This further strongly demonstrates greater need existing for IFAD to direct more of its resources to developing countries to enable rural people progressively graduate from poverty.

Mr. Chairman,

The Uganda delegation salutes Mr. Mr. Lennart Båge for the excellent work he did during the eight years as IFAD President.

We wish him well in his future life after IFAD. We also congratulate the incoming President upon his victory. We have no doubt that members have indeed entrusted the Fund with a person that befits the challenge as Mr. Båge’s replacement. Uganda assures him of unwavering support.

Uganda followed the discussions of the 8th replenishment of IFAD resources with keen enthusiasm and interest. We indeed congratulate the replenishment Committee for accomplishing the task timely and salute all those members that have so far pledged. Uganda’s contribution to the Fund will be cleared within two weeks from today.

I thank you all for listening to me.