Published on 18/10/2024
Legislators from Bugisu and Buganda Parliamentary Caucus have ramped up their opposition to the government’s plan to dissolve Uganda Coffee Development Authority (UCDA) and transfer its duties to the Ministry of Agriculture. They warn that the move poses a significant risk to Uganda’s coffee sector, jeopardizing its growth and oversight.
While appearing before Parliament’s Agriculture Committee at separate times, the Bugisu Parliamentary Group questioned the government’s claim that a three-year transition period would allow the Ministry of Agriculture to secure international accreditation to export coffee. They argued that it typically takes a minimum of five years to obtain such accreditation.
Nandala Mafabi (Budadiri West), Chairperson of the Bugisu Cooperative Union, explained that UCDA’s international accreditation is crucial for Uganda’s coffee exports. He emphasized that UCDA’s certification seal is globally recognized and that without it, Uganda’s coffee exports would face significant challenges.
“What UCDA does is cap the coffee, provide certification, and seal the container. That seal is recognized worldwide, and importing countries confirm that it is from UCDA before accepting the coffee,” Mafabi said. He added, “It would take no less than five years for the Ministry of Agriculture to gain this accreditation. These are serious issues we must consider.”
In September 2024, the NRM Parliamentary Caucus, meeting at State House-Entebbe, agreed to the merger of UCDA on the condition that its transition period be extended for three years to allow the Ministry of Agriculture time to apply for the necessary accreditation.
Linda Auma (Lira DWR), Chairperson of the Agriculture Committee, raised concerns about the impact of rationalizing UCDA. “Uganda relies on coffee exports. If UCDA is abolished, its accreditation will no longer be valid, which could collapse our coffee exports,” Auma noted. She sought input from coffee farmers and exporters on how to handle international accreditation.
Kivumbi Muwanga (Butambala County), Chairperson of the Buganda Parliamentary Caucus, criticized the government’s decision to transfer the coffee sector to the Ministry of Agriculture. “The Ministry of Agriculture has consistently underperformed. Why gamble with a sector that is thriving?” Kivumbi asked, referencing Ethiopia’s success in boosting its coffee industry by exporting billions of seedlings.
Allan Mayanja (Nakaseke Central) rejected the three-year transition period, questioning the rationale behind it. “Why three years? Why not five or ten? The government hasn’t provided any justification for this timeframe,” Mayanja argued, calling for the status quo to be maintained and the bill to be rejected.
Lulume Bayiga (Buikwe South) pointed out that UCDA generates more income than its budget, contributing significantly to the national coffers. “Unlike other agencies the government seeks to rationalize, UCDA is not parasitic. It is a milk cow that should be maintained,” Bayiga remarked, noting that UCDA generated Shs82 billion in the 2023/2024 financial year, exceeding its budget of Shs44.76 billion.
Fortunate Nantongo (Kyotera DWR) urged the committee to consider the concerns of coffee farmers. “We must fight for the coffee sector. In my district, coffee is the only source of income for many. UCDA has done so much for the sector, and its abolition would be disastrous,” she said.
Parliament is expected to begin discussions on the Rationalization Bills soon, which will determine whether agencies like UCDA will be merged or retain their autonomy.
