UGANDA – Uganda’s President Yoweri Museveni has emphasized the importance of value addition in coffee production and export, pledging further support for the Inspire Africa Group.
During his project appraisal visit to Rweshamaire in Ntungamo District, Museveni inspected the construction of Uganda’s first modern coffee facility and addressed ongoing challenges in the coffee value chain.
The coffee park project, which began in October 2023, is scheduled for completion in December 2024. The facility will produce a variety of coffee products, including instant coffee, drip coffee, malt coffee, coffee energy drinks, and coffee-based beauty cosmetics.
President Museveni expressed satisfaction with the progress, noting that the construction is currently 60 percent complete.
Museveni highlighted the need to stop the “hemorrhage” in Africa, where raw coffee exports yield significantly less revenue compared to processed coffee exports.
He pointed out the disparity in profits, stating that exporting unprocessed coffee earns Uganda only US$2.5 per kilogram, whereas countries like Japan can process the coffee and sell it for US$40 per kilogram.
Uganda aims to export 20 million bags of coffee by 2030, targeting nearly US$5 billion in revenue, a substantial increase from the current US$1 billion generated from green bean exports.
To achieve this, Museveni has shifted focus to value addition and has initiated investments in the modern coffee facility in Ntungamo.
Since 2023, the Ugandan government has been investing in the coffee value chain through the Coffee Investment Consortium Uganda (CICU).
The consortium, which unites coffee stakeholders in the country, aims to enhance export revenues, create employment opportunities, and increase farm gate prices by promoting the export of value-added coffee.
In the Financial Year 2023/2024, the government allocated resources through the Science, Technology and Innovation (STI) Secretariat under the Office of the President for the establishment of the modern Industrial coffee park in Rwashamaire Town Council, Ntungamo District.
President Museveni has promised to support the factory with necessary materials to ensure timely completion.
Museveni criticized the passivity of African countries, which allow non-coffee growing nations to reap significant profits from the crop.
“The global market collects US$450 billion, we as African collect US$2.5 billion and Uganda gets only US$1 billion – we need more,” he said.
A recent report by the Uganda Coffee Development Authority (UCDA) revealed a substantial decline in coffee exports.
March exports amounted to 329,686 60-kilo bags, valued at US$64.74 million, down from February’s 434,583 bags valued at US$82.56 million. This sharp fall underscores the need for Uganda to focus on value addition to stabilize and increase its coffee export revenue.
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