Uganda is facing significant debate over the National Coffee (Amendment) Bill 2024, which proposes dissolving the Uganda Coffee Development Authority (UCDA) and shifting its responsibilities to a department within the agriculture ministry. UCDA, a key regulatory body for over 30 years, has been central in establishing Uganda as Africa’s second-largest coffee exporter, trailing only Ethiopia.
The proposed bill has faced strong opposition from lawmakers, especially those in the opposition, who argue that dissolving UCDA risks undermining Uganda’s coffee industry. The sector is critical to Uganda’s economy, employing around 5 million people and supporting over 12 million individuals, with coffee exports generating approximately $813 million in revenue in 2022.
State Minister for Agriculture Bright Rwamirama defended the bill in parliament, suggesting the change could reduce government expenses and improve efficiency in the coffee sector. He assured that the transition, planned to span three years, would be gradual to minimize disruptions. However, Rwamirama admitted the proposal has created “tensions” among coffee stakeholders.
UCDA has been responsible for quality control, export certification, policy development, and international coffee promotion, contributing significantly to Uganda’s increasing coffee revenue. Opponents argue that dissolving the UCDA could compromise these roles, risking Uganda’s market position. They maintain that the agency has effectively fulfilled its duties, with no need for dissolution.
The government contends that the proposed “rationalisation” aims to streamline operations and reduce costs. UCDA’s budget for the 2023/2024 fiscal year was nearly $18 million, a figure the government seeks to optimize.
The bill is currently under committee review, with lawmakers carefully examining each clause. Some members of parliament, including opposition lawmaker Ssewanyana Allan Aloizious, voiced concerns that the agriculture ministry might struggle to maintain UCDA’s standards, potentially impacting the quality of Ugandan coffee in local and international markets.
Religious leaders have also weighed in, with Anglican Archbishop Stephen Kaziimba announcing special prayers for guidance on the coffee bill and other societal issues. The bill remains in deliberation, and its outcome will likely shape the future of Uganda’s vital coffee sector.
