By David Muwanga

THE flower sector injects $20m (about sh35b) back into the economy annually, according to a report released recently. The report by the Makerere University researchers disclosed that the sector’s annual export revenue was more than $30m in 2005.

“The sector puts an estimated $20m per year back into the economy through the payment of wages, transport fees, inputs and packaging,” the researchers said in a report.

The study was conducted on the coffee, fish, floriculture, horticulture and tourism sub-sectors with reference to trade between Uganda and Europe.

It also looked at the business relationship between local firms and their foreign buyers and the strategies of local firms to upgrade with these arrangements.
It said 60% of the flowers are sold through the Dutch Auction houses and 40% is through direct sales.

The growers aim at export earnings of at least $80m by 2010, according to the floriculture competitiveness strategy for 2005-2010. This is expected to increase direct jobs in the industry to 15,000.

The industry currently employs 6,000 people. Statistics show that 60% of them are women.

Half of this growth is expected to come from new investments, 30% from expansion into new areas and products and 20% from productivity improvements with new technology.

The report says the sector, now one of the largest export earners, transformed from infancy stage in the mid-1990’s to a competitive export business of 7,520 metric tonnes of flowers in 2005.
It has a growth rate of 14% and the total investment is estimated at $60m.

This has made Uganda the sixth largest African exporter of cut flowers after Kenya, Zimbabwe, South Africa, Ethiopia and Tanzania.

source : www.newvision.co.ug