The agricultural research body is considering commercial partnerships for its dairy processing plants, feed mills, garages and accommodation facilities as it seeks to reduce reliance on government funding.
The National Agricultural Research Organisation (NARO) is considering public-private partnerships to generate additional revenue from its existing research facilities and reduce its dependence on government and development partner funding.
The proposed arrangements would allow private investors to participate in the commercial operation of selected NARO facilities, with proceeds supporting agricultural research, technology development and the organisation’s long-term financial sustainability.
The proposals were discussed during a top management meeting held at Speke Resort Munyonyo on Wednesday, 4 November 2026, where officials reviewed project concept notes and feasibility studies for potential investments across NARO’s research institutes.
NARO Director General Dr Yona Baguma said the organisation had invested in infrastructure and technologies that could generate revenue beyond their primary research functions.
“NARO has several facilities whose capacity we need to harness to generate revenue for sustainable agricultural research and also make a contribution to the national coffers,” Baguma said.
Among the facilities being considered for commercial partnerships are the dairy processing plant and livestock feed mill at the National Livestock Resources Research Institute (NaLIRRI), and the fish feed mill at the National Fisheries Resources Research Institute (NaFIRRI) in Kajjansi.
Others include the feed sorting facility at Mbarara Zonal Agricultural Research and Development Institute, automotive garages at NARO research institutes and hostel facilities at NaFIRRI in Jinja and Mukono Zonal Agricultural Research and Development Institute.
The proposed partnerships would enable NARO to make greater commercial use of machinery, processing facilities and other infrastructure that may not be required continuously for research activities.
Baguma said the organisation needed to diversify its funding sources as financial support from development partners continued to decline.
Although government remains NARO’s principal source of funding, the Director General said additional financing would be necessary to sustain research programmes and expand the application of agricultural innovations.
He commended the government for increasing NARO’s annual budget from Shs61 billion to Shs223 billion over the past decade.
However, he said the organisation needed to explore other sources of income to maintain its research activities and make better use of existing investments.
“Over the last 30 years, we have done a lot as NARO, but we must continue finding ways of securing resources for sustainable research. We need to add value to the facilities we have and make them work for us,” Baguma said.
NARO reports billions in commercial value from research
Baguma cited existing commercial activities as evidence that agricultural research could generate revenue while supporting farmers and businesses.
He said licensing private seed companies to produce and sell improved crop varieties developed by NARO was now generating more than Shs1 billion.
The organisation has also established seed production hubs, including a coffee seed hub that generated products valued at more than Shs20 billion during the last financial year.
According to Baguma, investments in the anti-tick vaccine manufacturing facility have resulted in vaccine stock valued at more than Shs20 billion.
The figures reflect the commercial value of NARO’s research investments, although the value of products generated and vaccine stock does not necessarily represent revenue already collected.
“These investments are intended to make NARO more self-sustaining. We must invest our brains and make the right decisions,” Baguma said.
Finance Ministry backs commercial partnerships
The Executive Director of the Public-Private Partnership Unit at the Ministry of Finance, Planning and Economic Development, Jim Mugunga, welcomed NARO’s plans to attract private investment into its existing facilities.
Mugunga said growing demands on public resources required government institutions to identify alternative financing arrangements that could supplement allocations from the national budget.
“No country can fund everything it needs to do entirely through its national budget. Government has therefore been encouraging institutions to identify opportunities where private sector partnerships can bring in the strength, technology, innovation and financial resources needed to expand service delivery,” Mugunga said.
He explained that public-private partnerships could allow research institutions to increase commercial production without interfering with their primary scientific responsibilities.
Citing NARO’s animal feed processing facilities and improved pasture production, Mugunga said scientists may require only a fraction of the available production capacity for research purposes.
The remaining capacity, he argued, could be used commercially through arrangements with private companies.
Such partnerships could also improve the utilisation of expensive machinery and infrastructure that would otherwise remain idle outside scheduled research activities.
Mugunga said the approach could help public institutions recover value from existing investments while attracting private sector expertise, technology and financing.
He linked the proposed investments to the government’s Tenfold Growth Strategy and Parish Development Model, which seek to increase production, household incomes and participation in commercial economic activities.
According to Mugunga, commercialising agricultural innovations could improve their availability to farmers while supporting domestic revenue mobilisation.
He assured NARO of technical support from the Public-Private Partnership Unit in identifying, assessing and developing commercially viable projects.
The unit will work with relevant government institutions, including the Ministry of Finance, Ministry of Agriculture, Animal Industry and Fisheries, and Operation Wealth Creation, to examine the proposed investment opportunities.
The partnerships remain at the proposal and feasibility assessment stage, with specific investment arrangements yet to be concluded.
NARO expects the initiative to create additional income streams, improve the utilisation of public research infrastructure and provide more resources for agricultural research and technology development.
