One Village one Product (OVOP)

BRIEF ON OVOP PROGRAM IMPLEMENTATION IN UGANDA:

1. INTRODUCTION:

Mission statement:

To increase incomes and wealth for Ugandans through; value addition to local resources, human capital development, provision of unique services and marketing of the products. It aims to achieve One Village One Product production systems countrywide based on comparative advantage and economic use of resources.

 

Strategic objectives of the OVOP programme

The over all objective of the programme is to promote the production, processing and marketing of local products for wealth creation. The specific objectives are to:

1. Promote establishment of production networks/clusters within the country.

2. Promote value addition to local materials and products of comparative advantage at community level for social economic transformation

 

3. Develop human capital and entrepreneurial capacities amongst the participating communities.

4. Strengthen partnerships and linkages between Government, private sector and the donor community

5. Create and strengthen market clusters for OVOP products

 

BACKGROUND:

The One Village One Product Program was introduced in Uganda in 2008 as an integrated community development approach with a vision to increase incomes and wealth for Ugandans through; value addition to local resources, human capital development and marketing of high value added products and services. The OVOP concept was designed as a community based approach through which local resources would be utilized to promote production, processing and marketing of both products and services. The implementation flow of the program involves identification of the model enterprises, physical assessment of the selected enterprises, awareness creation on the OVOP programme and then providing relevant interventions to address the identified challenges.

 

2. OVOP PROGRAM IMPLEMENTATION AS AN INTEGRATED COMMUNITY ACTIVATION PROGRAM THROUGH BUSINESS:

The implementation of OVOP program is designed to stimulate local communities through development of model enterprises that competitively and sustainably produce quality products and services. The program implementation is not only limited to processing of raw materials but also provision of unique services.

Human resource development is central to the success of OVOP program implementation through activation of rural communities. The local people are the subject for the success of OVOP movement and they should be supported by the local leadership and community based organisations in implementing their activities. The supported enterprises must fully own their businesses and market their products/services while the government provides technical support for capacity development, product quality improvement and establishment of market linkages.

 

3. THE THREE KEY CONCEPTS GUIDING IMPLEMENTATION OF OVOP PROGRAM:

Successful implementation of OVOP program is being guided by three key principles that include:

Thinking Globally and Acting Locally:

Participating communities use local wisdom to transform their resources into unique products/services.

Human Capacity Development:

Human resource development is the most essential technical service extended to the participating groups through development of a business mind.

Self Reliance and Creativity:

The government facilitates the OVOP movement implementation process by providing technical support through networking of activities and provision of market information and the supported model enterprises are not given special subsidies directly. Participating members use their local ingenuity to effectively manage their businesses.

Value addition is not only limited to processing but takes any of the following different forms:

1) Production of a Special Variety of a product

2) Provision of specially designed Services

3) Using specific Production Processes

4) Identification and Utilisation of Unique Regional Futures

5) Traditional way of doing things

6) Packaging and Design

7) Labelling

 

  1. THE CURRENT OVOP PROGRAM IMPLEMENTATION OUTREACH SYSTEM:

a) Physical Assessment of Identified Model Enterprises:

The OVOP technical teams in collaboration with district commercial officer’s identify model enterprises and this is followed by a physical assessment exercise that critically analyses the following issues:

1) The challenges and gaps within the selected cooperative groups and discuss the possible areas of intervention

2) Availability of Business Plans in the selected Model Groups:

3) The availability of raw materials & their quantities for value addition.

4) The specific value addition activities that the selected model groups are engaged in and their products or services.

5) The level of group management & membership and for groups that are not registered as cooperatives, they are encouraged to do so for ease of mobilization of financial resources.

6) The availability processing facilities

7) The type of processing equipment needed to improve the product quality.

 

b) OVOP Program Model Groups Selection Criteria:

After the physical assessment of the identified enterprises, model enterprises are selected based on the following factors:

1. The level of community empowerment by the enterprise

2. The market potential of the products

3. Gender balance within the group

4. Level of leadership within the group

5. The level of sustainability within the group

6. The level of creativity within the group

It must be noted that a high level of collaboration between the OVOP program technical team, local government leadership and the participating groups is essential for effective and successful implementation of OVOP program.

 

5. MAJOR CHALLENGES FACED BY OVOP MODEL ENTERPRISES:

In order to successfully and competitively address challenges faced OVOP model enterprises; the OVOP technical team provides support designed to address the following major challenges faced by OVOP model enterprises:

1. Limited access to financial resources

2. Inadequate skills in the following areas:

a. Business Management and Value Addition,

b. Packaging and Product Labeling

c. Business Plan Development

3. Insufficient production of primary products for processing

4. Limited market linkages for their products

5. Limited access to business incubation services for product development and

6. Lack of product certification for most of the supported groups

 

6. GOVERNMENT INTERVENTIONS IN ADDRESSING THE ABOVE CHALLENGES:

This new approach focuses on improving the performance of production and productivity by providing technical interventions in the following key areas:

1) Development of Business management and value addition skills

2) Encouraging Community Leadership through training opportunities

3) Provide technical assistance in Product Development

4) Support marketing activities through exhibitions and Establishing Market Linkages

5) Linking the groups to Funding Institutions

6) Product Quality Improvement and

 

7. CAPACITY BUILDING FOR MEMBERS OF THE SELECTED MODEL ENTERPRISES:

Participating members from Selected Model Enterprises in Kayunga, Kumi, Serere, Kamwenge, and Kabale have acquired skills through training in Business Management & Value Addition and Marketing in addition to development of business plans for these model enterprises. Model groups selected from other districts are yet to acquire training because of the limited funding for the program but the technical team is expected to conduct these trainings during the third and fourth quarter of this financial year

 

Reports:

Enterprises supported by OVOP to date: OVOP Project Beneficiaries

 

 

 Uganda Export Promotion Board Uganda Warehouse Receipt System Authority Management Training and Advisory Centre Uganda National Bureau of Standards Uganda Industrial Research Institute