It would not be a stretch to say that the coffee sector is the backbone of Uganda’s economy. It contributes significantly to foreign exchange earnings and supports millions of livelihoods. Last year, the country earned Shs 6 trillion from coffee exports.
With more strategic investments, experts believe the country can even earn much more from coffee, at least Shs 15 trillion per year.
That is why reports that Parliament has approved Shs 60 billion for Inspire Africa to market Uganda’s coffee have been met with criticism and the feeling that the funds will enrich one individual not benefit the entire sector.
Critics and experts have argued that Shs 60 billion could enhance production, quality, value addition, and market access across the entire coffee sector.
Here is how.
******************************************************************
Farmer Training and Extension Services (Shs15 billion)
Empowering coffee farmers with knowledge and skills is critical for improving productivity and quality. This allocation could fund training programs for approximately 300,000 smallholder farmers (out of 1.8 million coffee-growing households) on good agricultural practices (GAPs), such as pest management, pruning, and soil fertility enhancement. The cost includes hiring 1,500 extension workers at Shs 5 million each annually (Shs 7.5 billion) and providing training materials, workshops, and field demonstrations (Shs 7.5 billion). Enhanced skills can increase yields from an average of 1.9 kg to 3.4 kg per tree, as seen in past programs, boosting overall production.
Seedling Distribution and Nursery Development (Shs 20 billion)
To meet the Coffee Roadmap’s target of 20 million 60-kg bags by 2030, expanding coffee acreage and replacing aging trees with high-yielding, disease-resistant varieties (e.g., Coffee Wilt Disease-resistant Robusta) is essential.
This budget could procure and distribute 20 million seedlings at Shs 500 each (Shs 10 billion) and establish 200 modern nurseries across coffee-growing regions (Shs 50 million per nursery, totaling Shs 10 billion). This would support planting on 20,000 hectares, assuming 1,000 trees per hectare, significantly increasing future output.
Value Addition and Processing Infrastructure (Shs 12 billion)
Investing in value addition can elevate Uganda’s coffee from raw exports to premium products, fetching higher prices. This allocation could finance 10 small-scale washing stations (Shs 800 million each, totaling Shs 8 billion) to process wet coffee, improving quality for specialty markets.
Additionally, Shs 4 billion could equip 20 coffee roasters with modern roasting and packaging machines (Shs 200 million each), targeting domestic consumption and regional exports. This aligns with the Uganda Coffee Roasters Association’s push for value addition, potentially doubling farmer incomes per kilogram.
EUDR Compliance and Farmer Registration (Shs 8 billion)
With the EU Deforestation Regulation (EUDR) effective January 2025, ensuring compliance is vital to maintain access to the EU market, a key destination for Ugandan coffee. This budget could register and geo-locate 500,000 farmers (half of the 1 million targeted by aBi Development Ltd) at Shs 16,000 per farmer (Shs 8 billion), including digital tools, GPS mapping, and certification processes. Compliance ensures continued trade and price stability, safeguarding export revenues.
Market Promotion and Export Support (Shs 5 billion)
Expanding global demand for Ugandan coffee requires aggressive marketing. This funding could support participation in 10 international coffee expos (Shs 300 million each, totaling Shs 3 billion) to showcase Uganda’s quality, as seen at the 2024 World of Coffee Expo.
An additional Shs 2 billion could enhance the Uganda Electronic Single Window System, streamlining export processes for 50 exporters. This boosts visibility and efficiency, targeting new markets like China and the Middle East.
