Members of Parliament from the Buganda and Bugisu regions have issued stern warnings against any attempt to dissolve the Uganda Coffee Development Authority (UCDA), stating that such a move would have disastrous consequences for Uganda’s coffee industry and affect the livelihoods of over 12.5 million people.
UCDA plays a crucial role in promoting and regulating Uganda’s coffee industry by enhancing marketing, ensuring export quality, supporting research, and advancing value addition, while coordinating the sector’s activities and formulating relevant policies.
The proposal to rationalise the UCDA, as part of the wider government plan to streamline public entities, has sparked significant debate. Many MPs argue that dissolving the authority would undo the substantial progress the country has achieved in coffee production and exports.
Recently, three parliamentary committees on agriculture; finance, and national economy met with the President and agreed on a law to integrate the UCDA into the agriculture ministry after a three-year transitional period. The matter was then referred back to the agriculture committee, chaired by Hon. Linda Auma.
During a committee meeting on Thursday, 17 October 2024 chaired by Hon. Rachel Magoola (NRM, Bugweri District Woman Representative), which is currently reviewing the Rationalisation Bill, Hon. Michael Lulume Bayigga, Vice Chairperson of the Buganda Parliamentary Caucus and Member of Parliament for Buikwe County South, voiced strong opposition to the proposal.
He described the agriculture ministry, the institution set to absorb the UCDA’s functions, as inefficient and incapable of managing the coffee sector.
Bayigga emphasised that the UCDA’s 23-year history has been marked by success in improving the quality and marketing of Ugandan coffee, significantly boosting foreign earnings.
“Unlike other agencies that the government seeks to rationalise, this agency makes a significant contribution to the national purse. Even if it stands alone, it can finance itself. It is a cash cow that should be maintained. Through licensing and cess tax alone, UCDA generated Shs82 billion in the last financial year,” he said.
Hon. Nathan Nandala-Mafabi, Chairperson of the Bugisu Cooperative Union, also expressed concerns, highlighting UCDA’s international recognition and accreditation for overseeing Uganda’s coffee exports. He explained that dissolving the UCDA would leave Uganda facing a lengthy and uncertain process of accrediting a new entity, such as the agriculture ministry.
Such a transition, he noted, could take years, during which Ugandan coffee would likely be placed on international watch lists, delaying exports and harming farmers and traders.
“To move that responsibility from UCDA to the Ministry of Agriculture, in my view, would take us up to 10 years. Accreditation is vital for us, and the only entity currently accredited is UCDA,” Nandala-Mafabi, also the Budadiri County West Representative, stated.
He further emphasised that Uganda’s coffee industry is self-sustaining and generates significant revenue for the country. “Coffee is not like cotton, an annual crop. Even if the price falls worldwide, coffee farmers will still earn something and can wait for better prices later. We live on it, we grow on it, and it is dangerous to tamper with people’s livelihoods,” he said.
MPs’ opposition to the rationalisation of UCDA stems from concerns that disrupting coffee exports could destabilise the livelihoods of millions of Ugandans who depend on the industry.
Both Bayigga and Nandala-Mafabi stressed that dissolving such a pivotal institution, without a viable alternative, would create economic uncertainty and potentially cripple one of Uganda’s most valuable exports.
Hon. Muhammad Muwanga Kivumbi (NUP, Butambala County) and also the Chairperson of Buganda Parliamentary Caucus added that dismantling UCDA could result in a situation similar to Uganda’s vanilla trade, which is now controlled by a few individuals.
“The accreditation of vanilla exports in Uganda is in the hands of two or three people—individual companies—and it is now these individuals who set the prices. They are the buyers, processors, and exporters, and that’s why the vanilla trade, which once thrived, has collapsed,” he said.
After the meeting, the committee chairperson announced that the committee would hold an internal meeting to scrutinise all the proposals from those who had appeared before it, adding that the committee would prioritise the interests of coffee growers in its final decision.
