Why we should safeguard Uganda’s Coffee Industry
Dismantling UCDA would undermine this progress yet there are other alternative ways for the government to cut costs without risking one of Uganda’s most lucrative industries.
Op-Ed: The Ugandan government’s proposal to abolish the Uganda Coffee Development Authority (UCDA) and transfer its responsibilities to the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) has sparked widespread concern among stakeholders in the coffee sector.
While this move is positioned as a cost-saving measure, it poses significant risks to Uganda’s thriving coffee industry, currently Africa’s third-largest coffee exporter.
As one of Uganda’s primary cash crops, coffee contributes substantially to the national economy, generating an impressive revenue of over $1.14 billion annually. The UCDA has played a critical role in this success, overseeing everything from quality control to export accreditation, which has allowed Uganda’s coffee to compete on the global stage.
Dismantling UCDA would undermine this progress yet there are other alternative ways for the government to cut costs without risking one of Uganda’s most lucrative industries.
1.Risks to Uganda’s Coffee Export Quality and Market Credibility. The UCDA provides international certification for Uganda’s coffee exports, a seal of quality that global buyers trust.
Transferring these functions to MAAIF would require new accreditation processes, a transition that industry experts argue could take up to five years.
This delay would leave Uganda’s coffee exports vulnerable to reduced access to high-demand international markets, threatening the livelihoods of millions of Ugandans reliant on coffee farming majority of which are in Buganda.
- Proven Record of Success Under Independent Management. UCDA’s focused oversight has enabled the coffee sector to grow from 2.1 million 60kg bags in the 1990s to over 8.1 million bags in recent years.
During this period, UCDA distributed high-quality seedlings, conducted extensive training for farmers, and developed wilt-resistant coffee varieties. This dedicated, specialized agency has supported Uganda in becoming a top-tier coffee producer worldwide—a track record that could be compromised under a more generalized ministry framework.
- Lessons from Other Nations: Kenya and Ethiopia’s Experiences. Kenya’s decision to merge its Coffee Board with its agriculture authority led to a 69% drop in production, ultimately prompting the government to reinstate a specialized coffee authority. Ethiopia, by contrast, maintains a separate Ethiopian Coffee and Tea Authority, which has contributed to its coffee sector’s international reputation.
These cases demonstrate that reducing UCDA’s role would likely erode Uganda’s competitive position, a risk the country can ill afford.
- Alternate Cost-Saving Measures. There are viable alternatives for reducing government expenditures without disrupting Uganda’s coffee sector. Some practical suggestions include: -Reducing Salaries of High-ranking Officials: Ministers and Members of Parliament could receive a modest reduction in salaries and allowances. In many countries, government officials have accepted pay cuts during budget-constrained periods, setting a powerful example of shared sacrifice.
-Streamlining Underperforming Agencies: Prioritize the consolidation of genuinely redundant or underperforming agencies rather than dismantling those with a proven economic impact. By targeting less efficient entities, Uganda can achieve fiscal responsibility without undermining sectors that drive economic growth.
-Optimizing Public Procurement Processes: Addressing inefficiencies in procurement within the government could yield significant savings. Transparent, competitive bidding and the elimination of wasteful expenditure in state purchases could reduce costs across numerous departments without affecting frontline services.
As Uganda aims to secure its place in the global economy, dismantling UCDA is a step in the wrong direction. With its dedicated management and recognized quality standards, UCDA has been a vital driver of growth for one of the nation’s most critical export. We urge the government to explore alternative measures for cost reduction, preserving the integrity and future of Uganda’s coffee sector and protecting the livelihoods of millions of Ugandans.
Writer author is Kennedy Muhindi the Director Entrepreneurship & Financial Literacy at Umoja Empowerment Resources.
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