Uganda's contentious coffee bill explained

By Brian Okoth

East African nation Uganda faces a major division over the National Coffee (Amendment) Bill 2024.

The bill proposes that the Uganda Coffee Development Authority (UCDA), which has operated for over 30 years, be dissolved and its functions performed by a department within agriculture ministry.

Members of parliament, especially those in the opposition, have opposed the bill, saying dissolution of UCDA would risk the future of Uganda's coffee production.

The East African nation is the second-largest exporter of coffee in Africa, behind Ethiopia.

Sector employs millions of people

In 2022, Uganda earned about $813 million from coffee exports, while Ethiopia earned $1.5 billion.

The other top coffee producers in Africa are Rwanda, Kenya, Tanzania, Côte d'Ivoire, and Burundi.

The coffee sector employs about 5 million people in Uganda, with over 1.8 million households growing the crop.

People who — directly or indirectly — benefit from the coffee industry in Uganda are approximately 12 million, a figure suggesting how important coffee is to the country of over 45 million people.

'Tensions'

And now, an amendment bill is proposing that the sector's regulator, UCDA, be dissolved, and its functions taken over by a department within the agriculture ministry in efforts to save costs within government.

Uganda's State Minister for Agriculture Bright Rwamirama recently told parliament that the winding up of UCDA would be gradually done across three years to avoid disrupting the sector.

Rwamirama further acknowledged that the proposed dissolution of UCDA has caused "tensions" in the country.

He, however, said that coffee stakeholders would soon "understand that the same government that supported UCDA, aims to empower farmers to earn more."

UCDA 'instrumental' in coffee sector

A parliamentary report said UCDA has been "instrumental" in establishing Uganda as one of Africa's leading coffee exporters.

The country's increased coffee revenue over the years has also been attributed to the regulator.

UCDA's functions include coffee quality control, certifying all coffee exports, advising government on coffee pricing, promoting Uganda's coffee internationally, supervising the coffee industry, and formulating sector policies.

Opponents of the coffee amendment bill say UCDA has performed its functions well, and therefore there is no need to dissolve it.

Move aimed at 'saving costs'

Minority lawmakers said dissolution of UCDA would compromise quality control and negatively impact Uganda's coffee exports.

The government, however, maintains "rationalisation" of UCDA would "save costs and improve efficiency" in the coffee sector.

In Uganda's 2023/2024 financial year, UCDA was allocated a budget of almost 65 billion Ugandan shillings, an equivalent of nearly $18 million.

The coffee amendment bill 2024 is currently at the committee stage, where lawmakers review every clause of the bill in order to approve, or modify it. The committee stage can take more than a week.

'Much favoured coffee'

The bill can be rejected in totality at this stage, or in the subsequent third reading stage.

Several Ugandan lawmakers said they needed to consult their constituents before taking a decisive stand on the matter.

Ssewanyana Allan Aloizious, an opposition lawmaker representing Makindye West in parliament, recently said in the house: "UCDA has been ensuring quality coffee in the market, in Uganda and outside Uganda. So, if it is taken to the agriculture ministry, we are very worried as consumers that our much favoured coffee will not be favoured in the whole market."

The Anglican Church of Uganda Archbishop Stephen Kaziimba says the church will hold special prayers at the martyrs' site in central Uganda's Namugongo town from November 20 to 23 for "God's intervention" on the coffee bill, poverty, domestic violence, among other issues.

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