President Museveni met with coffee stakeholders yesterday to discuss the fate of the contested coffee deal with Uganda Vinci Coffee Company (UVCC) Limited.
Finance Minister Matia Kasaijja signed an agreement with the UVCC to process Uganda’s coffee beans on February 10.
Ms. Enrica Pinetti, the chairperson of UVCC, who witnessed the signing of the deal that the parliamentary Trade committee red-flagged on May 18, did not attend yesterday’s meeting, which sources described as “highly confidential,” but her team did.
Mr. Kasaija and Attorney General Kiryowa Kiwanuka, who cleared the coffee deal before Parliament’s Committee on Trade terminated it, were present at the State House Entebbe meeting yesterday.
According to attendees, Mr. Kiwanuka and Mr. Moses Byaruhanga, the senior presidential advisor on political affairs, were tasked with figuring out how to improve the coffee value chain.
This followed President Museveni’s discussion with stakeholders about how to best add value to Uganda’s coffee beans.
“We had the opportunity to listen to his strategic vision for the coffee sector,” one meeting participant said, adding, “We now understand that the goal is to increase the earnings that Uganda can get from coffee.”
Our source at the meeting said they “shared suggested ways in which the entire value chain can be improved in order for these objectives to be achieved.”
Farmers, exporters, traders, and Uganda Coffee Development Authority officials were among those present at the meeting (UCDA). Mr. Fred Bwino Kyakulaga, the junior Agriculture minister, also attended the meeting.
Mr. Museveni has made no secret of the government’s desire to enter the lucrative market of exporting processed coffee.
While Uganda is Africa’s leading coffee exporter, it primarily exports green coffee. Thanks to the efforts of at least 1.7 million Ugandan households that grow coffee on plots less than an acre, slightly more than six million bags are exported.
“From the garden to the table, Uganda should be able to produce.” In the case of coffee, however, it is from the farm to Kampala. “This has to stop,” President Museveni is said to have told coffee stakeholders at yesterday’s meeting, adding, “Before we came to power, we wrote a 10-point plan.” The fifth point was that we are going to create an economy that is independent, integrated, and self-sufficient. When it comes to coffee, I have always said that we should add value to our products, and that is still our position.”
Mr. Museveni went on to say that he wants the coffee industry to follow in the footsteps of the milk and textile industries. “The struggle to get full value addition on our products is on in every sector,” the President said.
The stakeholders are said to have pledged to pull in the same direction in a statement issued by the State House. “We’re here to get your advice and share ideas.” “Our goal is to ask the government to support our local indigenous companies so that we can add value to our coffee,” their coordinator, Mr. Robert Kabushenga, is quoted as saying.
“We would like to assure you that we are completely behind you,” he added. We intend to establish a solid coffee plant in Uganda.”
The government’s February agreement with UVCC was supposed to produce 60,000 tonnes of processed coffee, among other things. On the other hand, the deal included several incentives for UVCC, such as tax breaks and exclusive rights to purchase all of Uganda’s coffee. Most such provisions were deemed unworkable by members of the Trade Committee.
The UCDA and Uganda Development Corporation, the government’s investment arm, revealed in August that plans to establish a soluble coffee plant in the country are being investigated.
Mr. Ahmed Sultan, a UVCC official, was quick to reassure stakeholders that the company is looking out for their best interests.
“We are here to collaborate and trade with you in order to increase productivity,” he explained. Godfrey Kiwanda, former State Minister for Tourism: I have no objections to anyone who can add value to our coffee.
The more competition there is, the better for my farmers. I wouldn’t mind if Madam Pinetti took an interest in coffee and was willing to add value and give us the money we wanted for our coffee.
The only issue I would have is the establishment of the monopoly—the more players who join to process, trade, and add value, the better.
Former Lubaga North lawmaker Moses Kasibante: Museveni should not act as a middleman between a dealer and peasant coffee farmers.
He appears to be attempting to broker a deal in which [the farmers’] benefits on prices determined by international coffee trade factors are surrendered. What is happening to his much-touted liberal economy, which is only benefiting other farm products such as milk and beef?
Former Busiro South legislator Joseph Balikuddembe: What he is doing exemplifies best administrative practices. However, the President’s only issue in such gatherings would be imposing decrees on what he selfishly believes should be done.
Mityana South MP Richard Lumu: The Parliament made the final decision for us. We oppose the agreement. It’s anti-human. We oppose the amendment. We are pleased with the results. Whatever amendment was made, it was done improperly and unethically.
