Uganda has initiated processed coffee exports to the U.S. after signing a memorandum of understanding (MOU) between DET Importers and JAL Processing Company. The deal, a significant outcome of the maiden Pan African Congress Business Forum and Expo involves the export of 600,000 sachets of iced espresso ready-to-drink liquid coffee to the U.S., valued at over USD 200,000.
John Magnay, proprietor of JAL Processors, emphasized the deal’s significance, stating, “Today we have signed purchase orders valued in Shillings at just under one billion. We believe this is just the beginning because we have a global product. This is our first order to America, and we think we can target USD 6 million by 2028.”
Additionally, DET Imports secured another deal with AMI Farm in Mityana to export macadamia nuts worth USD 244,800, further cementing the potential of private sector-led trade relations between Uganda and the U.S., particularly amid Uganda’s suspension from the African Growth and Opportunity Act (AGOA).
David Bahati, the State Minister for Finance in charge of Trade, Industry, and Cooperatives, praised the event for its practical nature, remarking on the importance of tangible results, “In many business forums, we sign MOUs, and after two or three months, you can’t find an MOU. But today, we have signed not just an MOU but an LPO.”
He highlighted partnerships as crucial for Uganda’s ambitious plans to boost the economy from USD 55 billion to 500 billion by 2062 through export promotion and import substitution. Bahati also noted Uganda’s vast agricultural and mineral wealth, emphasizing the need for value addition and mineral beneficiation. Uganda holds USD 1.2 trillion in gold reserves and 32 million tons of iron ore, yet imports iron worth USD 1 billion annually.
Odrek Rwabogo, Chairperson of the Presidential Advisory Committee on Export and Industrial Development (PACEID), shared that the committee aims for USD 1 billion in annual exports to the American market, beginning with the agreements made during the forum. He also highlighted the government’s readiness to support exporters through grants and infrastructure, stating,
“If you place an order and have considered the entire ecosystem, from sourcing to transportation and standards to consumption, we have the capacity to underwrite it.” Among other key commitments from the forum were plans to build a laptop factory in Kampala and establish an international standards creatives hub.
Uganda’s exports to the U.S. have grown significantly over the past five years, increasing from USD 7.74 million in 2017 to USD 60.2 million in 2022, with coffee, vaccines, and vanilla being the primary exports. In April 2024 alone, Uganda exported goods worth USD 6.74 million to the U.S. while importing a similar value of products.
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