KARAMOJA INVESTMENT PROFILE 2016 KARAMOJA INVESTMENT PROFILE 2016 CONTACT: Uganda Investment Authority Twed Plaza, Plot 22B, Lumumba Avenue P.O.Box 7418 Kampala, Uganda Tel: +256 414 301 000 Fax: +256 414 342 903 [email protected] www.ugandainvest.com 1 KKAARRAAMMOOJJAA IINNVVEESSTTMMEENNTT PPRROOFFIILLEE 22001166 GGoolldd mmiinniinngg iinn KKaarraammoojjaa 22 KKAARRAAMMOOJJAA IINNVVEESSTTMMEENNTT PPRROOFFIILLEE KARAMOJA INVESTMENT PROFILE 22001166 2016 GENERAL INFORMATION Karamoja Region, in north-eastern Uganda is now administratively divided into seven districts: Kaabong, Abim, Kotido, Moroto, Amudat, Napak and Nakapiripirit. The Region borders Kenya to the east, South Sudan to the north and the districts of Kitgum, Pader, Lira/Agago, Amuria and Katakwi to the west; and Kumi, Sironko and Kapchorwa to the south. Overall population in Karamoja is estimated at about 1.2 million people, with about 70 percent residing in rural areas. With more than 27,000 Acholilands. square kilometres, this Karamoja is more than arid expanse of savannah 1,000 metres above and bush forms the sea level, and four main northeast edge of Uganda mountains overlook where it borders Kenya the region’s savannah, and the Sudan. To its highlands and river east stands the Rift Valley valleys: Mount Morungole escarpment towering over in the north, Mount Moroto the Kenyan plains and in the east, Mount Kadam scrubland. To the north in the south and Mount lie the pristine basin of Napak in the west. Kidepo National Park and also a mountainous vastness that leads into the Sudan. Similarly, to the south, there are the rugged peaks of Mount Elgon National Park. In the west, abundant swamps enter into the GGoolldd mmiinniinngg iinn KKaarraammoojjaa 22 1 KARAMOJA INVESTMENT PROFILE 2016 Karamoja Mountains In many areas, rains do not the harsh environment in which often exceed 800 millimetres they live. Most of its land is per year, sometimes hovering communal, and customarily held around a mere 500 millimetres. – under traditional authority. The precipitation that does fall A 2011 survey by the Uganda usually comes sporadically department of geological survey between June and October with and mines at the Ministry of the desert winds and the hot dry Energy found that Karamoja season taking over the land from is also endowed with minerals November to March. including Gold, limestone, Karamoja is an agro-pastoralist uranium, marble, graphite, area; the economy is based on gypsum, iron, wolfram, nickel, cattle herding: this is considered copper, cobalt, lithium and tin. by the Karimojong to be the most sustainable type of livelihood in 2 KARAMOJA INVESTMENT PROFILE KARAMOJA INVESTMENT PROFILE 2016 2016 LivestockMAIN ECONOMIC ACTIVITIES IN THE REGION Cattle in Karamoja Karamoja Mountains Livestock approximately 20% of the national cattle herd, 16% of the It’s worth noting that in the region, goats, 50% of the sheep, 90% of In many areas, rains do not the harsh environment in which most households obtain income the donkeys and almost all of the often exceed 800 millimetres they live. Most of its land is from livestock comprising cattle, camels. It has been calculated per year, sometimes hovering communal, and customarily held goats and sheep, village-based that Karamoja, and the 2.4% of around a mere 500 millimetres. – under traditional authority. scavenging pigs and backyard Uganda’s population that lives The precipitation that does fall poultry. Economically the people A 2011 survey by the Uganda there, produces close to 20% usually comes sporadically obtain products such as ghee, department of geological survey of Uganda’s livestock output between June and October with meat, skins, milk, and slaughter/ and mines at the Ministry of by value. The Karamoja region the desert winds and the hot dry cull stock. It is estimated that Energy found that Karamoja also acts as a conduit for cattle season taking over the land from 80% of households own livestock is also endowed with minerals movements from Kenya and November to March. in the Karamoja sub-region of including Gold, limestone, Sudan into the rest of Uganda. Uganda, and that this represents Karamoja is an agro-pastoralist uranium, marble, graphite, area; the economy is based on gypsum, iron, wolfram, nickel, cattle herding: this is considered copper, cobalt, lithium and tin. by the Karimojong to be the most sustainable type of livelihood in Grazing of goats in Karamoja 2 3 KARAMOJA INVESTMENT PROFILE 2016 Farming in Karamoja Tourists in Karamoja Agriculture Tourism The Karamoja sub-region has one Karamoja is a unique tourism of the most fertile soils in Uganda area in Uganda, both in terms but it has one rainy season. Crop of the variety and distribution of production in Karamoja is rain- its tourism assets. As a region, fed. Its importance to household the variety of its combined food economies increases from wildlife, forestry, landscape, east to west conforming to the paleontological and cultural pattern and reliability of rainfall. tourism assets are second to Sorghum, maize, finger millet no other in Uganda. The region and cowpeas are dominant crops is endowed with tourism assets these are supplemented by found in forest reserves and beans, groundnuts, cassava and wildlife conservation areas, sweet potatoes. No field-crop which cover 12% and 41% of the scale irrigation is undertaken land, respectively. These assets in Karamoja although irrigated offer an untapped and potentially horticultural crops are found in lucrative comparative advantage western areas where traditional for local economic development. vegetable growing areas using Landscape aesthetic values springs and wetlands, close to in protected areas and on ready markets are noted. communal land are also high. 4 KARAMOJA INVESTMENT PROFILE KARAMOJA INVESTMENT PROFILE 2016 2016 Minerals Forestry A 2011 survey by the Uganda Karamoja is home to some of the department of geological survey largest central forest reserves in and mines at the ministry of Uganda. These reserves cover energy found that Karamoja has approximately 12 per cent of gold, limestone, uranium, marble, the land area and are of great graphite, gypsum, iron, wolfram, importance to water catchment nickel, copper, cobalt, lithium and tourism development in and tin. The survey indicated the region. A wide number of Farming in Karamoja Tourists in Karamoja that land in Karamoja is owned herbs and medicinal products communally, which makes it for humans and livestock are Agriculture Tourism difficult for the mining companies derived from trees. Firewood, The Karamoja sub-region has one Karamoja is a unique tourism to identify the rightful owners for charcoal, building materials, of the most fertile soils in Uganda area in Uganda, both in terms compensation or consultation. gums, resins and extractives are but it has one rainy season. Crop of the variety and distribution of Other mineral deposits in also harvested from different tree production in Karamoja is rain- its tourism assets. As a region, Karamoja are mica, green and species within the sub-region. fed. Its importance to household the variety of its combined red gannets, tin, marble, beryl, Further, trees provide forage and food economies increases from wildlife, forestry, landscape, cuprite, hematite, limestone, talc browse to livestock during both east to west conforming to the paleontological and cultural graphite, columbite, magnetite, dry and rainy seasons. Browse is pattern and reliability of rainfall. tourism assets are second to platinum, and zircon. particularly important during the Sorghum, maize, finger millet no other in Uganda. The region dry seasons when acacia pods and cowpeas are dominant crops is endowed with tourism assets are utilized. these are supplemented by found in forest reserves and beans, groundnuts, cassava and wildlife conservation areas, sweet potatoes. No field-crop which cover 12% and 41% of the scale irrigation is undertaken land, respectively. These assets in Karamoja although irrigated offer an untapped and potentially horticultural crops are found in lucrative comparative advantage western areas where traditional for local economic development. vegetable growing areas using Landscape aesthetic values springs and wetlands, close to in protected areas and on ready markets are noted. communal land are also high. Gold Mining in Karamoja Karamoja forests 4 5 KARAMOJA INVESTMENT PROFILE 2016 Livestock GENERAL INVESTMENT OPPORTUNITIES N THE AREA Use of solar in Karamoja • Given the single rainy season in the area which cannot sufficiently sustain agriculture, the need to develop small scale irrigation schemes around Manyattas using windmill/solar driven boreholes is insurmountable. Installation and maintenance of windmill, solar and or gravity flow driven irrigation systems getting water from the major dams for both crop irrigation and drinking water for animals leave alone domestic consumption is an area worth investing in. • The demand is from clients such as Local governments, schools, churches and the many NGOs in the area. • Investment in the development of other relevant cash crops suitable for Karamoja such as Gum Arabic, Aloe Vera, and Amarula. Investors to put up processing facilities for these high value crops are guaranteed of sufficient local supply. • The need to commercialize agriculture in the region brings an opportunity for the provision of agricultural and farm inputs like light tractors, ox-ploughs, improved seeds and fertilizers. The demand is available as many people in the area are now cultivating but at a subsistence level. Government through its numerous programs to develop the area is also encouraging the modernization of agriculture so as to boost household incomes. 6 KARAMOJA INVESTMENT PROFILE KARAMOJA INVESTMENT PROFILE 2016 2016 Livestock • In a bid to improve the a supplement to the tourism GENERAL INVESTMENT OPPORTUNITIES N THE AREA quality of livestock breeds, and wildlife already on going there exist investment in the region. Coupled with opportunities to establish the exciting indigenous livestock multiplication cultures and lifestyles of centers and provide the people, venturing into alternative breeds to the eco-tourism is a worthwhile local breeds. This is in a venture through marketing bid to grow the numbers so the natural and cultural that an industry around the heritage of Karamoja. livestock such as diary, beef, leather and tanning can be • Invest in the development established in the area. of the apiculture industry in Use of solar in Karamoja Karamoja through creating • The presence of ostriches a reliable and consistent • Given the single rainy season in the area which cannot and camels in commercial market supply chain for sufficiently sustain agriculture, the need to develop small scale numbers yields the desire honey and other hive irrigation schemes around Manyattas using windmill/solar driven for one to engage in products. boreholes is insurmountable. Installation and maintenance commercial farming for the of windmill, solar and or gravity flow driven irrigation systems two. The venture may result • Given the vast amounts of getting water from the major dams for both crop irrigation and into tourism and also may minerals in the region, the drinking water for animals leave alone domestic consumption is be explored as an alternate mining industry provides an area worth investing in. food business. the highest number of investment opportunities in • The demand is from clients such as Local governments, schools, • Given its unique natural the area. These exist in the churches and the many NGOs in the area. environment and wildlife, exploration and exploitation the region provides plenty of all the minerals with the • Investment in the development of other relevant cash crops of opportunities in the areas Ministry of Energy readily suitable for Karamoja such as Gum Arabic, Aloe Vera, and of eco-tourism. This can be giving out licenses. Amarula. Investors to put up processing facilities for these high value crops are guaranteed of sufficient local supply. • The need to commercialize agriculture in the region brings an opportunity for the provision of agricultural and farm inputs like light tractors, ox-ploughs, improved seeds and fertilizers. The demand is available as many people in the area are now cultivating but at a subsistence level. Government through its numerous programs to develop the area is also encouraging the modernization of agriculture so as to boost household incomes. Calves at Lokopo Napak water source Ostriches in Karamoja 6 7 KARAMOJA INVESTMENT PROFILE 2016 Veterinary staff treating livestock Orange farming in Karamoja in Karamoja Region • Karamoja also provides • Given the large population investors interested in of livestock, access to sustainable harvesting animal health services, of valuable indigenous skilled veterinary staff, tree products with a and timely and effective particular focus on Shea livestock disease butter, khat, desert date surveillance are important and sandalwood with components for improved an opportunity. Similarly animal health. This is an related is the establishment area where investors can of improved fruit orchards explore opportunities along for mangoes, oranges and the whole chain to make other suitable fruits which sustainable businesses. should be explored. 8
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