If you’re a Ugandan coffee farmer, whether working on a small scale or farming to put your land to productive use, you’ve likely noticed the ongoing debate that’s brewing in the coffee industry. Uganda, one of Africa’s top coffee producers, has been buzzing with remarkable achievements, groundbreaking innovations, and recently, a little controversy. As global demand for coffee grows, Uganda’s export earnings have reached historic highs. But now, a new bill is set to reshape the industry—and it’s sparking discussions about the future of coffee production, control, and ownership in Uganda.
Uganda’s Coffee Success Story:
Over the past year, Uganda’s coffee industry has been on an impressive upward trend. Export revenue surged to a record $594 million in a single quarter, driven by high global coffee prices, increased production, and the tireless work of the Uganda Coffee Development Authority (UCDA). UCDA has led the charge, setting ambitious goals to increase coffee production to 20 million bags by 2030. This vision includes collaborations with global research groups to develop resilient crops and support sustainability—an effort that has brought hope to millions who rely on coffee farming.
Government-backed initiatives for supplying improved seedlings, coupled with UCDA’s push for sustainable practices, have also supported farmers through challenging times, ensuring a brighter future for Uganda’s primary cash crop. But Uganda’s potential goes beyond exporting raw beans. Many industry experts believe that the real opportunity lies in fostering local processing and value addition. Imagine Uganda as a coffee giant that not only grows but processes its beans, keeping a larger slice of the billion-dollar global coffee market within its borders.
While the president has consistently advocated for in-country processing, raw coffee beans continue to dominate Uganda’s exports. Shifting to more domestic processing remains a daunting challenge but could open significant doors for Uganda’s economy and its farmers. And all this has been steered under the watchful eye of the UCDA—until now.
The landscape is shifting. Recently, a new proposal—the Uganda National Coffee (Amendment) Bill, 2024—has come forward, seeking to consolidate (merge) the UCDA’s functions into the Ministry of Agriculture. The government says the bill aims to cut costs and reduce redundancies, part of a broader restructuring effort across sectors. But this suggestion has sparked debate, with many in the industry, including lawmakers, coffee farmers, and opposition leaders, voicing concerns.
For decades, UCDA has been at the heart of Uganda’s coffee industry, regulating quality standards, providing farmers with seedlings, and fostering global partnerships. Critics worry that merging UCDA’s work with the broader ministry could weaken its expertise, as coffee farming requires a specialized focus that could get lost in a larger governmental body. Lawmaker Muwanga Kivumbi notes that neighboring coffee giant Kenya attempted a similar merger, only to reverse the decision after setbacks. Could Uganda face a similar fate?
It’s worth noting that the coffee bill isn’t the only contentious issue in Uganda’s coffee landscape and neither is it the first time Uganda’s coffee sector has faced potential restructuring due to controversial agreements. Just a few years back, the government signed a deal with Uganda Vinci Coffee Company (UVCC), an Italian firm, granting it exclusive rights to buy and process Ugandan coffee for export to Europe and the Middle East. The agreement included tax exemptions, triggering a backlash from local stakeholders who argued Uganda’s own entrepreneurs could do the job. Parliament ultimately moved to cancel the agreement, citing constitutional issues and a lack of transparency. Many fear that the bill could open the door for more exclusive deals that don’t necessarily benefit Uganda’s farmers or small-scale processors.
This debate surrounding the coffee bill has heightened scrutiny over Uganda’s coffee sector, with many asking: Who stands to gain from these changes? Farmers? Local businesses? Or foreign corporations?
Many fear the new bill could open doors to similar exclusive deals, with critics questioning whether the interests of Uganda’s farmers—particularly small-scale growers—will be adequately safeguarded. Farmers are concerned that the industry’s future could shift toward benefiting large corporations, potentially sidelining the smallholder farmers who have been the backbone of Uganda’s coffee industry for generations.
Farmers are particularly concerned that without UCDA’s targeted support, they may lose access to critical resources that have helped them increase yields and quality. This could leave them vulnerable to market volatility and the dominance of large corporations.
Religious leaders, including Pastor Joseph Sserwada of Victory Christian Church and the Katikkiro of Buganda, Charles Peter Mayiga, have strongly opposed certain sections of the Ugandan coffee legislation. They are particularly concerned about proposed government controls on coffee farming. Mayiga criticized the requirements for mandatory registration of farmers and the Uganda Coffee Development Authority’s (UCDA) oversight of coffee plantations. He argued that these regulations could hinder coffee production and potentially harm Buganda’s ‘Emwanyi Terimba’ campaign, which promotes coffee cultivation throughout the kingdom.
Despite the uproar, the government believes the bill will enhance efficiency, reducing the UCDA’s operating costs. However, those skeptical of the merger argue that Uganda’s coffee boom shows the current setup works and that specialized agencies have propelled Uganda to success. They also highlight that UCDA contributes significantly to Uganda’s revenue, collecting non-tax income from coffee exports that support national development.
Where the government sees the bill as a step toward efficiency, the farmers argue that the current setup has driven Uganda’s recent success well enough.
However, there’s also the social angle. UCDA isn’t just a regulatory body—it’s a lifeline for smallholder farmers, providing seedlings and know-how that lift families out of poverty. Disrupting this setup could jeopardize Uganda’s ambitious coffee production goals, leaving farmers without the resources they rely on.
What’s Brewing for Uganda’s Coffee Industry
The future of Uganda’s coffee industry hangs in the balance as the coffee bill advances through parliament. On one hand, these reforms could streamline Uganda’s agricultural efforts, enabling the government to manage resources more effectively and broaden Uganda’s coffee footprint internationally. On the other hand, merging UCDA into the Ministry of Agriculture might upend a system that’s been working, possibly impacting the industry’s growth trajectory.
For now, Uganda’s coffee farmers, exporters, and consumers are left wondering: Will this new structure pave the way for growth and prosperity, or could it set the industry back? The coffee bill’s journey through parliament is being closely watched, and the decision will undoubtedly shape the future of Uganda’s most prized crop. If Uganda’s coffee continues to thrive, it will be a testament to a balanced approach that respects both efficiency and expertise.
Will Uganda’s coffee industry retain its current momentum, or are we on the verge of reshaping one of Africa’s most promising markets? The answer may affect farmers and consumers alike…an answer, that only the parliamentary proceedings can answer.
