Annex 11
Table of Contents
Page
Table of Contents
1
List of Figures
1
Background of the study
2
Overview of the Tea Sector in Uganda
3
Historical Background of Mpanga Growers Tea Factory
4
Review of Business and Commercial Performance of Mpanga (2005-2015)
5
Social and Environmental Impact
13
List of Figures
Figure 1: Mpanga’s Green Leaf Production from 2005 to 2014
6
Figure 2: Sales volume of Mpanga from 2005 to 2014
9
Figure 3: Gross Profit Margins of Mpanga from 2005 to 2014
10
Figure 4: Asset Value of Mpanga from 2005 to 2014
12
Figure 5: Employee Population of Mpanga from 2005 to 2014
13
Figure 6: Producer Population of Mpanga from 2005 to 2014
16
1
Background of the study
Mpanga Growers Tea Factory Limited has become one of the key actors in the tea sector in
Uganda today. Over the last two decades, the organisation has gone through a lot of
developmental stages and processes, which have impacted on its business and financial
performance. Mpanga have made some important interventions that resulted in the
improvement of the livelihood of many tea producers in the Kabarole and Kyenjojo districts
of Western Uganda. They created several jobs and improved the working conditions of their
employees over time. They have also undertaken several community development projects in
the areas of health, education, water and sanitation, road infrastructure and shelter. Mpanga
have created a good corporate name and they are recognised nationwide for their social
interventions and good labour practices. Today, one cannot tell the story of tea production
and processing in Uganda without reference to Mpanga Growers Tea Factory Limited.
Mpanga is a customer with whom Shared Interest have a long history of financial support.
Since 2007, Mpanga have benefited from several financial interventions from Shared Interest
in a form of term loans. The present study, therefore, set out to look at the history of Mpanga
in the context of the assistance Shared Interest have been able to provide over the past 10
years. It specifically examined the changes in the business and commercial performance of
the organisation in the light of Shared Interest interventions. The study also looked at the
social and environmental impact made by Mpanga over the period.
The study utilised a case study approach (qualitative) and the main methods employed for
data collection were key informant interviews and focus group discussions. Interviews were
held with key members of the Senior Management Team, namely the General Manager, the
Accountant, the Marketing Manager, the Field Manager and the Human Resource Manager;
the Kasunga Estate Manager was also interviewed. Furthermore, an exclusive in-depth
interview was held with the first Factory Manager of Mpanga who also happened to be a tea
producer and has been supplying the organisation for the past 18 years. Additionally, three
different producers of Mpanga, who have been with the organisation for over 20 years
provided valuable information that fed into the study.
Besides individual interviews, focus group discussions were organised with different groups
of employees of Mpanga including two groups of factory workers and two groups of estate
workers. Each group had at least four members and was composed of exclusively either male
or female employees who have been with Mpanga for not less than 5 years. The financial
2
records of Mpanga were also reviewed to gather data on the business and financial
performance of the organisation over the years. The data obtained through qualitative
inquiries and documentary reviews were supplemented by the results of the 2014
producer/employee survey carried out to ascertain the impact of Shared Interest interventions
on producers and employees of Mpanga as well as their households.
The findings of the study are quite interesting and revealing. They present the picture of an
organisation that was able to grow and sustain its business throughout the years. In fact,
Mpanga rose up to the challenges of the time, expanded rapidly and succeeded in
transforming their business landscape to the amazement of stakeholders. The organisation
was able to achieve this level of success through collaborative partnership and access to
finance. Indeed, access to finance played a crucial role in the survival of Mpanga. It has
enabled them to step up their production capacity and to sustain their business operations
even in the face of major shake-ups in the tea sector.
Overview of the Tea Sector in Uganda
Uganda is a landlocked country located in Eastern Africa. It has a total area of 236,040
square kilometres including a land area totalling 199,710 square kilometres. The country is
bordered on the west by Congo, on the north by the Sudan, on the east by Kenya, and on the
south by Tanzania and Rwanda. It is in the heart of the Great Lakes region, and it is
surrounded by Lake Edward, Lake Albert, and Lake Victoria. Uganda is in a tropical region
and lies across the equator; it has a population of 35,918,915 with 3.24% growth rate and a
life expectancy of 54.46.
Despite being on the equator, Uganda is more temperate than the surrounding countries due
to its altitude. The country is mostly plateau with a rim of mountains. This has made it more
suitable to agriculture and less prone to tropical diseases. Basically, the country is divided
into three main areas namely swampy lowlands, fertile plateau with wooded hills, and a
desert region. Uganda has a bimodal precipitation pattern, with two distinct wet and dry
seasons each year. The climate in much of Uganda is suitable for commercial cultivation of
tea.
Uganda has a relatively long history of tea cultivation among African countries.
In Africa, Uganda is the third leading producer and exporter of tea (45,000MT) after Kenya
(295,000MT) and Malawi (55,000MT). Uganda’s tea is produced on 26,000 hectares of land
3
with 12,000 hectares under estate and 14,000 hectares under small holder out growers. Tea is
Uganda’s third largest agricultural export commodity by value after coffee and fish.
According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), 93% of
Uganda’s tea products are exported while 7% is consumed domestically. Statistics from the
Ministry of Finance, Planning and Economic Development (MFPED) indicate that Uganda
earned USD 72,000,000 from exporting 63,456 tons of tea cultivated on 35,194 hectares of
land in 2013. This represented 2.8% of Uganda’s total export, 1.26% of global tea exports
and 0.36% of Uganda’s Gross Domestic Products. The tea industry employs over 62,000
people and supports more than 500,000 livelihoods in Uganda (Bank of Uganda, 2011). Tea
growing is considered as a very important tool for fighting poverty through its ability as a
source of employment to households especially in rural areas. Uganda tea is exported through
the Mombasa tea auction centre, which markets to worldwide destinations.
In all, Uganda has 12 tea processing and exporting companies operating 28 processing
factories. One of these companies is Mpanga Growers Tea Factory whose tea is marketed
through the Fairtrade value chain.
Historical Background of Mpanga Growers Tea Factory
Historically, tea plant was introduced to Uganda around 1900. In the mid-1950s, it became
the country’s estate crop and was essentially under the control of Asians and Europeans. In
1966, the Government of Uganda established Uganda Tea Growers Corporation (UTGC) to
take care of the interest of smallholder tea farmers in Uganda. In order to boost the country’s
export earnings through tea production and to improve the socioeconomic conditions of small
holders, the Government, in 1988, initiated a 10 year tea rehabilitation project in the small
holder tea sector with funding support from the European Union. The project, which was
known as “Small holder Tea Rehabilitation Project (STRP)” covered the rehabilitation of
farmers’ gardens and tea processing factories. The successful implementation of this project
resulted into an increase in tea production volume from 500 metric tons in 1980 to 10,971
metric tons in 1994.
In 1994, the European Union provided another grant to Uganda to support the Smallholder
Tea Development Programme of the country. It was a five year programme that led to the
privatisation of the four tea factories that were under the Uganda Tea Growers Corporation.
The objective was to empower smallholder tea farmers to increase tea production so as to
4
improve their income and livelihood. The privatisation process was led by the Agriculture
Industrial Management Agency (AGRIMAG), a management consultancy contracted by
Government. By the year 2000, the ownership of these four factories passed to smallholders
who became shareholders. Mpanga Growers Tea Factory was one of the four factories that
were under the then UTGC. It was established in 1971 and was then known as Mpanga Tea
Factory. The name changed to Mpanga Growers Tea Factory Limited in 1995 during the
privatisation process.
Mpanga Growers Tea Factory Limited is a rural-based factory located in Sebitoli in the
Kabarole district of Western Uganda. It is 12 kms away from Fort Portal, the district capital
and about 300 kms from Kampala. Mpanga Growers Tea Factory Ltd was incorporated in
1995 as a public limited company wholly owned by smallholder tea farmers in Kabarole and
Kyenjojo districts of Western Uganda. After its incorporation, smallholder tea farmers were
encouraged to acquire shares by means of deductions from their pay for green leaf delivered
to the factory every month. By the year 2000, all the 100,000 share capital had been paid up
by the smallholders who became the legitimate owners of Mpanga Growers Tea Factory
Limited. As at 2014, the company had a total of 1,046 members and an employee population
of 633. The mission of Mpanga Growers Tea Factory Company Limited is the processing of
tea leafs and marketing of high quality made tea on behalf of the shareholder farmers.
Review of Business and Financial Performance of Mpanga
Mpanga Growers Tea Factory Limited had a very difficult beginning; of the four factories
that were incorporated in 1995, Mpanga was described as the smallest in terms of
membership, production level and infrastructure. According to the former accountant of
Mpanga, many were those who doubted the ability of Mpanga to stand by itself. In 1999, two
estates were purchased for Mpanga under the Smallholder Tea Development Programme.
These were the Kibale and Kyapa estates. The objective was to increase Mpanga’s production
volume and ensure a meaningful profit margin for the organisation. As a result of this
intervention, Mpanga, in the year 2000, was able to rehabilitate her only production line
which had become obsolete and less efficient. The rehabilitation of the production line had
increased productivity at the factory level. The quality of the tea produced had improved
leading to an increase in the profit margin of the business.
5
Furthermore, Mpanga expanded the processing factory by adding one new production line in
2003. This was financed through bank borrowing. Though a new production line was added,
the profit margin of the business did not increase significantly as most of the profit was being
absorbed by the high interest on the bank facility.
The year 2007 was a major milestone in the business of Mpanga. The organisation was able
to acquire the enviable Kasunga estate with financial support from Shared Interest. This was
the first intervention of Shared Interest in Mpanga. The estate covered about 300 hectares of
land including 150 hectares of tea estates and 117 hectares of forest. In addition, the Kasunga
estate has a tea training centre, a conference hall, a restaurant and residential bungalows. The
acquisition of this estate led to great improvements in the business and commercial
performance of Mpanga.
Kasunga conference centre

Production of green leafs
There was a significant increase in green leafs production after the acquisition of the
Kasunga tea estate. Figure 1 shows the historical trend of Mpanga’s green leafs
production from 2005.
6
Figure 1: Mpanga’s Green Leafs Production from 2005 to 2014
Production volume per year (in MT):
14,000
12,000
10,000
8,000
Production volume per year (in
MT):
6,000
4,000
2,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The production of green leafs before 2005 was below 8,000 metric tons. This was
essentially due to the fact that Mpanga at the time had only two tea estates and the
number of producers was also very limited. However, there was a sudden rise in the
production volume of the organisation after 2007, when the Kasunga tea estates was
purchased. The production volume rose from 8,196 metric tons in 2007 to 12,841
metric tons in 2012. The acting marketing manager explained that the rise in
production volume was as a result of the additional estate bought in 2007. He noted
that Mpanga after taking over the Kasunga estate succeeded in increasing production
from the tea estate from170 kgs per month to 300kg per month and this impacted on
the green leaf production level of the organisation.
A sharp decline was observed in the production levels of the business in 2011 and
2014. The production of green leafs dropped from 12,841 metric tons in 2010 to
10,747 in 2011. There was also a reduction in production from12, 527 metric tons in
2013 to 11,342 metric tons in 2014. These were attributed to the effects of climate
change. Those two years were characterised by severe droughts, which affected yield.
It was reported that the gardens of many farmers got dried up in those two years
leading to a short fall in production.
7
A closer look at figure 1 reveals that production of green leafs picked up again after
2011. It moved from 10,747 metric tons in 2011 to 12,527 metric tons in 2013. This
rapid recovery in production was the direct outcome of Shared Interest intervention in
2012 with a financial support to Mpanga for the purchase of inputs for distribution to
farmers. This has translated into an increase in yield and in production volume.
View of part of Kasunga tea estate

Sales volume
The sales volume of Mpanga dwindled from 2000 metric tons in 2005 to 1800 metric
tons in 2007. After 2007, the sales volume of the business saw a rapid growth,
indicating improvement in the business of Mpanga after the acquisition of the
Kasunga estate. Figure 2 shows the performance of the business in terms of sales
volume from 2005 to 2014.
8
Figure 2: Sales Volume of Mpanga from 2005 to 2014
Sales Volume (mt)
3,500
3,000
2,500
2,000
Sales Volume (mt)
1,500
1,000
500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The sales volume grew from 1,879 metric tons in 2007 to 2,898 metric tons in 2010.
The growth in sales volume was mainly explained by the increase in the supply of
green leafs to the factory, a bigger chunk of which came from the Kasunga tea estate.
Another factor that accounted for the growth in sales volume was the increase in the
withering capacity of the factory. The withering section of the factory was expanded
and a new withering machinery was acquired during the period leading to the
doubling of the processing capacity of the factory from 40,000kg to 80,000kg of
green leafs. However, there were transitory downward variations in 2011 and 2014
mainly explained by reductions in the supply of green leafs due to severe drought that
affected production those two years. It is evident from the statistics that since the
acquisition of the Kasunga tea estate, Mpanga has, generally, recorded a steady
growth in their sales volume.

Gross Profit
The profit margins of Mpanga were affected by tea price fluctuation. The records
indicate that 90% of Mpanga’s tea is sold through the Mombasa Tea Auction Centre
in Kenya. Tea prices on the auction market are determined by demand and supply,
quality and geographical location. Figure 3 presents the profit levels of Mpanga from
2005 to 2014.
9
Figure 3: Gross Profit Margins of Mpanga from 2005 to 2014
Gross Profit Margin
35
30
25
20
Gross Profit Margin
15
10
5
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The gross profit margin of Mpanga rose from 2005 to 2006 and fell significantly in
2007. This was as a result of the decline in the average price of tea at the auction
centre; the average price declined from USD 1.68/kg to USD 1.56/kg and led Mpanga
into incurring a loss of UGX 159,871,000 at the end of 2007 season. The acquisition
of the Kasunga estate in 2007 played a vital role in the recovery process of Mpanga in
the subsequent years. The business gross profit margin grew significantly from 4% in
2007 to 19% in 2008 and 24% in 2009. Several factors accounted for this phenomenal
increase in profit margin. First, after taking over the Kasunga estate, Mpanga was able
to effectively and rigorously monitor quality processes at the Kasunga tea estate
leading to improvement in the quality of tea, which in turn attracted better prices at
the auction in 2008 and 2009. Second, Mpanga’s cost of production went down
considerably during the same period. This was attributed to the supply of fuel wood
from the Kasunga forest to the factory. We recall that Kasunga estate was acquired
together with 117 hectares of forest. The forest was populated with eucalyptus, which
are renewable trees and friendly to the environment when used as fuel wood. Mpanga
continued to maintain the forest by planting more eucalyptus trees, which have
become a sustainable source of energy for tea processing at the factory. Indeed, tea
processing requires steam for withering, fermentation and drying. There is, therefore,
an extensive use of fuel wood throughout the process. Mpanga’s expenditure on fuel
wood dropped significantly resulting in a reduction in the business cost of production,
hence the significant increase in profit margin. This growth could not be sustained
10
beyond 2009 as business begun to experience a fall in profit margin due to quality
issues. Mpanga needed to address these quality issues stemming from inadequate
supply of inputs to producers. Again, Shared Interest intervened in 2012 by providing
financial support to Mpanga for the purchase of fertilizers for distribution to
producers. The results of this intervention were remarkable. The business achieved
32% gross profit margin in 2012 and 29% in 2013, the highest ever in the history of
the organisation.
Side view of part of Kasunga forest
However, the tea sector in Uganda was hit hard by the sharp decline in tea auction
average prices in 2014. From an average price of USD 2.2 /kg in 2013, the price fell
to USD 0.9/kg in 2014. This has adversely affected the profit margin of Mpanga in
2014, which dropped from 29% in 2013 to 2% in 2014. The decline in tea prices was
attributed to a drop in demand as against supply. The demand for tea at the auction
market was very low due to the political and economic challenges facing some of the
key markets, namely Egypt, Pakistan, Sudan, Afghanistan and DRC. It was reported
that there was an oversupply of more than 2 million kg of tea at the Mombasa Tea
Auction Market in 2014.Mpanga described these situation as system problem and has
taken a number of steps to buffer the business and to recover quickly from the shock.
These steps include green leaf quality improvement, the search for alternative market
and increase in local sales through value addition.
11

Asset base
There has been a steady increase in the total asset of Mpanga over the years. From a
total asset value of USD 1,963,840 in 2005, the business has expanded its asset base
to USD 6,449,160 as at December 2014. This represented over 228% growth rate over
the period. Figure 4 shows the asset value of Mpanga from 2005 to 2014.
Figure 4: Asset Value of Mpanga from 2005 to 2014
Asset Value (USD)
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
Asset Value (USD)
3,000,000
2,000,000
1,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
The total asset value of Mpanga increased from USD 1,963,840 in 2005 to USD
2,791,600 in 2007 representing 42% growth rate in two years. The business’ asset
base expanded more rapidly between 2007 and 2008, recording a growth rate of 54%
within the period. This was primarily attributed to the acquisition of the Kasunga
estate. The total asset value of the business increased further in 2009 with the
construction of the Kibale labour camp and the extension of the withering house at the
processing factory. There was, however, a decline in the asset value of the business
from 2010 to 2011 due to the disposal of obsolete machinery and asset re-evaluation.
As shown in figure 4, Mpanga’s asset base rose sharply from USD 4,716,025 in 2012
to USD 6,784,900 in 2013 and to USD 6,449,160 in 2014 being the highest ever
attained by the business since its incorporation. This sharp rise resulted from the
construction of a blending unit and factory workers quarters in 2013 and 2014
respectively. The construction of the factory workers quarters was yet another
intervention of Shared Interest in Mpanga. In effect, Shared Interest granted a facility
12
to Mpanga in 2013 for the construction of housing units for workers. This has
expanded Mpanga’s asset base during the period. However, there was a slight
reduction in total asset in 2014 due to a decrease in the profit margin of the business.
As we may recall, the profit margin of Mpanga declined significantly in 2014 as a
result of the fall in tea prices on the auction market. Nonetheless, Mpanga can still
boast of a solid asset base which is a reflection of the resiliency and sustainability of
their achievements over the years, thanks to the support of major actors like Shared
Interest.
Social and Environmental Impact
The great business and commercial performance of Mpanga could also be mirrored
through its social and environmental impact. The young and frail Mpanga of the early
2000s has now become one of the major players in the tea industry in Uganda.
Through their social interventions, Mpanga has been able to create a good cooperate
name in the country. In 2014, the organisation won the Employer of the Year Award,
which was handed over to them by the President of the Republic of Uganda. In actual
fact, Mpanga has provided jobs to many men and women in the Kabarole district of
Western Uganda. The employee population grew from 411 in 2005 to 663 in 2014,
representing 61% growth rate over the period. Figure 4 shows the employee
population of Mpanga from 2005 to 2014.
Figure 5: Employee Population of Mpanga from 2005 to 2014
Employee Population
700
600
500
400
Employee Population
300
200
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
13
Despite upwards variations in the employee population, it has seen a steady growth
over the years. The slight decline in growth observed between 2010 and 2013 was due
to several reasons: first, Mpanga went through a restructuring process that led to the
retrenchment of some staff in 2010; second, the introduction of automated plucking
machines has also brought a reduction in the number of casual workers. However, in
2013, Mpanga embarked on hiring tea estates to increase production and supply of
green leafs to the factory. In all 13 tea estates were hired by Mpanga between 2013
and 2014. Additional workers were, therefore, engaged for these newly acquired
estates, hence the sharp increase in the number of employees in 2014. According to
Mpanga’s field manager, this strategy will enable the organisation to better monitor
quality, which is key to achieving better prices on the auction market.
Besides the hiring of new estates, Mpanga set off to expand production in the existing
estates in order to ensure adequate supply of quality tea leafs to the factory in the near
future. The expansion also led to the employment of more workers, whose services
were, obviously required to maintain the gardens.
The organisation has consistently demonstrated her commitment to the promotion of
the general welfare of workers. One of the key areas of intervention in relation to staff
welfare was the provision of decent shelter for staff. Since 2009, Mpanga have been
constructing staff quarters to provide accommodation for their workers. The Kibale
Labour Camp was established in 2009 for workers of the Kibale Tea Estate. Three
additional blocks of six single rooms each were constructed to accommodate more
workers at the Kasunga Labour Camp in 2010. Pursuant to their objective of
providing better homes for their workers, Mpanga constructed the Sebitole staff
quarters and acquired one more residential facility at Kaswa in 2011. Furthermore,
Shared Interest provided financial support to Mpanga in 2013 for the construction of
more staff quarters for factory workers. These interventions are indicative of the
resolve of Mpanga to provide better living conditions to their workers. In a survey
carried out in 2014 involving 207 employees of Mpanga, 72% of them indicated that
they were happy with the shelter arrangement of the organisation. Employees who
were not provided with shelter received housing allowance.
14
One of the housing units put up with financial support from Shared Interest
Further results from the 2014 employee survey revealed that employees of Mpanga
were satisfied with their working conditions. The majority of employees interviewed
indicated that their working conditions have improved over time. In a focus group
discussion with a section of casual workers in June 2015, they reported significant
changes in their living conditions. In fact, the average daily wage of casual workers
has improved from UGX 2,850 in 2005 to UGX 3,900 in 2014, representing 37%
growth rate.
The producer population of Mpanga has also grown significantly over the period. It
rose from 1,100 in 2005 to 1,898 in 2014, a growth rate of 73%. Figure 6 shows the
producer population of Mpanga from 2005 to 2014.
15
Figure 6: Producer Population of Mpanga from 2005 to 2014
Producer Population
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Producer Population
2005 2006 2007 2008 2009 2010 2011 2013 2014
The producer population has seen a steady growth from 2005 to 2009 and dropped
sharply in 2010 after a revision of the organisation’s producers list. It was realised
that some producers had no longer been supplying Mpanga but still had their names
on the producer list of the organisation. The revision was, therefore, carried out to
ascertain the actual number of active producers. After the revision exercise, the
producer population started growing up again as new producers joined the
organisation. In 2014, their number increased very significantly. The field manager
explained that the increase was due to the registration of a high number of new
farmers in the course of the year. Mpanga needed to expand its producer base by
admitting young producers who will eventually replace the older generation of
producers who was becoming weaker and less productive. The organisation continued
to call on producers to involve their wives and children in tea production by giving
them ownership of part of their tea estates. Some of the older producers heeded to the
call and gave away part of their tea estates to their children and wives leading to the
dramatic increase in producer population in 2014.
The average price per unit paid to the producer went up from USD 0.10 / kg in 2005
to USD 0.17 / kg in 2014, representing 70% growth rate over the period. The growth
of the average price per unit paid to the producer is an indication of increase in
producer income and improvement in his livelihood. The 2014 producer survey
16
carried out in Mpanga coupled with individual interviews held with some key
producers in June 2015 revealed that generally producers’ income has improved
significantly over the period. Kwezi Dismus, one of the oldest producers of Mpanga,
commenting on the improvement in producers’ income and livelihood said, “Today a
farmer cannot fail to pay his children’s school fees.” As a matter of fact, most
producers were able to see their children through education. A good number of them
have put up their own residential accommodation and continue to supply the basic
needs of their families. They submitted that they were able to make it through life as a
result of the continuous support from Mpanga Growers Tea Factory. They applauded
Mpanga and their partners for supporting them with inputs and extension services,
which have enabled them to increase production and yield over the years and to make
good income.
The testimony of Miramaso Stephen, a 71 year old producer of Mpanga, was much
revealing. He has been a producer of Mpanga since 1996 and has seven hectares of tea
gardens. He supplies between 2,500kgs and 3,000kgs of green leafs to Mpanga every
season. He stated that the regular supply of fertilisers and other inputs from Mpanga
have been the major contributing factors to his success. He pointed out that the cost of
inputs kept rising and most of them wouldn’t have been able to afford them without
the support of Mpanga. He further indicated that he has been able to make very good
income, which enabled him to take care of the educational needs of his children. He
supported his daughter to complete her degree in laboratory technology. One other
child has also successfully completed a university level training in mechanical
engineering and has been employed by a cement manufacturing company; another
one was trained as a teacher. He revealed that he was still financing the education of
one more child who was in his third year at the medical school. His continuous
investment in the education of his children is a proof of sustained growth income and
livelihood improvement.
Over the years, Mpanga have carried out several community development projects
that have impacted on the livelihood of thousands of people in the Kabarole District
of Western Uganda.
17
Mpanga has established three clinics and one maternity unit which provide health care
to their workers and community members. The Kasunga clinic was acquired in 2007
and serves the workers of Kasunga Tea Estate and its surrounding communities. The
Factory Clinic was established in 2009 to provide health care services to factory
workers as well as community members. The third clinic is located at the Kibale Tea
Estate and has been providing primary health care to the estate workers and other
community members in the catchment area since 2010. Each clinic has a nurse and a
visiting doctor who comes around once a week.
Furthermore, Mpanga have constructed shallow wells in seven communities between
2007 and 2011. This was to increase access to water for community members. These
shallow wells brought a great relief to the beneficiaries, who no longer walk long
distances to access water for domestic use. Similarly, Mpanga since 2005, have dug a
total of 23 latrines in 12 different communities as part of their effort to promote
hygiene and sanitation in the respective beneficiary communities. These interventions
have helped control the spread of diseases such as cholera.
In addition, Mpanga have been undertaking regular maintenance of community roads
to enhance transportation of farm produce and to facilitate easy movement of people
within the various communities. The organisation has also been supporting
educational institutions by constructing bungalows for housing their staffs and by
providing them with items such as teaching and learning materials, roofing sheets and
furniture.
The major environmental impact intervention of Mpanga has been in the area of forest
expansion and conservation. The organisation acquired in 2007 a 93 hectare forest,
which was part of the Kasunga estate. This vast stretch of forest has been preserved
throughout these years. Mpanga has expanded the forest by adding an extra 24 hectare
forest essentially made of eucalyptus trees, which normally provide fuel wood to the
factory. Though the factory depends heavily on this forest for fuel wood, the regular
planting of trees has helped rejuvenate and expand it in a sustainable manner. The
Kasunga forest reserve has contributed to bio-diversity conservation and to the
mitigation of the effects of climate change on production of tea and other crops in
Kasunga and its environs.
18
Mpanga continued to train producers on environmentally friendly farming practices
for a sustainable agriculture. They also undertake climate change awareness
campaigns and build the capacity of their producers on climate change mitigation
strategies to improve yield. These interventions have led to the minimisation of the
effects of climate change on production and to the conservation of the environment.
19