September 24, 2025
ARTICLE
In the hills of Uganda’s Kitagwenda District, the Kyendagara Area Cooperative Enterprise (KACE) is showing how market access, integrated services, and community leadership can incentivize innovation and unlock sustained agricultural productivity growth.
Originally established in 2006 with support from The Nippon Foundation, KACE functioned for nearly two decades as a subsistence-oriented group focused on rice seed production and local maize milling. But in 2024, catalytic investment from the Ministry of Foreign Affairs of Japan (MOFA), implemented by the Sasakawa Africa Association (SAA), sparked a profound transformation.
Under SAA’s One Stop Centre Association (OSCA) model, KACE was equipped with a suite of interconnected services: training in business and agronomic skills, access to certified inputs, post-harvest technologies, financial linkages, and market integration. This ecosystem not only improved yields but also created stronger incentives for farmers to invest in productivity-enhancing tools and practices. Productivity gains allowed KACE to transition from a subsistence to commercial scale.
A major turning point came with SAA’s support for agro-processing and product certification, enabling KACE to move up the value chain. With Q-Mark certification and support from the Uganda National Bureau of Standards, the cooperative gained access to formal markets, including schools, wholesalers, and supermarkets across southwestern Uganda—and opened opportunities for cross-border trade with DR Congo and Burundi.
In 2024 alone, KACE processed over 384 tonnes of maize—up from 87 tonnes the year prior—and sold certified maize flour at USD 0.44/kg, generating USD 168,563 in revenue. New contracting opportunities, including a USD 16,461 agreement with Persher Agro Ltd, provided stability and price predictability, encouraging members to increase production and reinvest in their farms.
This surge in market demand and guaranteed off-take reduced risk for producers and enhanced the return on investment in improved practices such as row planting, post-harvest handling, and input use. With access to finance facilitated by SAA and UGAFODE Microfinance, farmers accessed over UGX 3 billion ($833,333 US) in loans to expand their operations, further increasing productivity at the farm level.
Cooperative membership more than doubled—from 1,200 in 2023 to 2,750 in 2024—driven by trust in consistent market access and service delivery. KACE’s model has also created new employment opportunities, particularly for youth in processing and women serving as village agents, who now help aggregate maize and expand the cooperative’s reach.
While challenges such as unreliable electricity and high transport costs remain, KACE is exploring energy alternatives and logistics partnerships to ensure continuity and efficiency. With continued support, the cooperative is on track to become a national example of inclusive, market-driven productivity growth.
From modest beginnings to a thriving commercial enterprise, KACE illustrates the transformative impact of aligning farmer incentives with well-structured support systems, value addition, and market certainty. It demonstrates that when farmers have the tools, knowledge, and market access to succeed, productivity gains become not just possible—but inevitable.