Uganda grants a coffee company exclusive right
Ugandan lawmakers want a government pact scrapped that provides a single corporation with exclusive rights to purchase the country’s coffee, citing unfairness to local exporters.
The details of the “controversial” February deal with Uganda Vinci Coffee Company Ltd. will be investigated by the parliament’s trade committee, according to a statement from Speaker Anita Among.
So long as Uganda Vinci doesn’t obtain its quota, no one can purchase the country’s produce, according to politician Abed Bwanika.
Uganda Vinci has the right to choose the price, he added, without specifying when the contract would take effect.
According to the finance ministry, Uganda Vinci would invest $80 million in the country’s first final product processing facility.
The agreement is part of the government’s plan to quadruple coffee output to 20 million bags per year by 2030.
“Uganda Vinci would pay a premium price for excellent quality coffee beans, decided honestly and not below the price allowed by Uganda Coffee Development Authority,” the finance ministry tweeted. Green coffee exports will continue as dictated by market factors.
According to Uganda’s coffee regulator, growers get around 80% of the export price of the beans.
The nation sends most of its harvest to Italy, Germany, the US, and Spain, and may produce 9.1 million 60-kilogram bags by September.
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