Category
Integrated Investment Appraisal
Country
Uganda
Client
United States Agency for International Development (USAID)
Industry
Public Health Nutrition Agriculture Economic Development
TL;DR
This project established domestic RUTF manufacturing capacity in Uganda, supported by USAID/Uganda, to combat child malnutrition and boost smallholder farmer incomes. A comprehensive cost-benefit analysis assessed its financial viability, economic efficiency, and multi-sectoral impacts, ensuring sustainable local RUTF supply and enhanced market linkages.

This project involves the establishment of domestic RUTF manufacturing capacity in Uganda, supported by a US$22 million investment under USAID/Uganda’s Therapeutic and Supplementary Products for Improved Nutrition (TASPIN) initiative. The project aims to address high rates of child malnutrition (33% stunting, 5% wasting) and limited agricultural market access, and is expected to generate economic and social benefits by improving nutrition outcomes, creating a sustainable local RUTF supply chain, and increasing incomes for 4,000 smallholder farmers through enhanced market linkages. As part of the evaluation, a comprehensive cost-benefit analysis was conducted in line with international good practices, assessing the project’s financial viability, economic efficiency, and multi-sectoral impacts. The analysis included detailed production cost estimates for 386,659 kg/year of RUTF, market demand forecasts, farmer income projections, and risk-adjusted scenarios for local manufacturing sustainability, ensuring robust decision-making support for USAID/Uganda and the Government of Uganda’s Ministry of Health.