The Parliamentary Committee on Agriculture, Animal Industry, and Fisheries has expressed concern about the proposed dissolution of the Uganda Coffee Development Authority (UCDA) in the government rationalisation policy, stating that it will significantly impact the country’s leading agricultural export earner.
Chairing the committee, Janet Okori-Moe justified the retention of UCDA, citing the government’s commitment in 2017 to boost coffee production from 3.5 million bags to 20 million bags by 2030.
Okorie-Moe noted that the reasons for dissolving the authority largely stem from the government’s side, not UCDA’s.
“Some reasons for rationalizing UCDA are faults emanating from the government, not the authority. To say that coffee is no longer profitable and that each coffee tree yields only one and a half kilograms is not UCDA’s fault. Some of the trees are 50 years old, especially in Bukedi and Elgon. It is the government’s responsibility to plan and supply farmers with new coffee seedlings,” said Okori-Moe.
She reiterated the recent move by the African Union in declaring coffee as the strategic crop of Africa, emphasizing that it is not the time for the government to slow down efforts to boost coffee production.
Okori-Moe made these remarks during the committee’s meeting with UCDA officials led by the Board Secretary and Director for Legal Affairs, Eunice Kabibi, during which they considered the National Coffee (Amendment) Bill, 2024.
MPs questioned the motive behind rationalizing an entity that has generated Shs 202.35 billion over the past five years.
“When I compare what the Ministry of Agriculture, Animal Industry, and Fisheries submitted to us, stating that coffee is not profitable, with what UCDA has submitted, it does not make sense. They want to shut down an entity that is financing the government,” said Linda Auma .
The committee learned of ongoing projects under UCDA worth Shs 518.9 billion, which the agriculture ministry will have to undertake once the authority is dissolved, with the passing of the Bill.
UCDA officials expressed concern that these projects are destined to fail since they require timely inspection with adequate manpower.
“Delays in any of the processes will lead to loss of foreign exchange earnings, reputation, and litigation-related costs,” said Kabibi, adding that the authority is facing numerous court claims due to delays in payments to coffee nursery farmers totaling Shs 1.9 billion.
UCDA officials were concerned that there were no signs that staff would be reintegrated into the ministry. As a result, Kabibi presented the cost of dissolving the authority through termination benefits at Shs 16.32 billion, divergent from Shs 3.40 billion in the Ministry’s certificate of financial implication.
“We fail to understand their justifications on costs and the savings they plan to make – they are saying that coffee is no longer profitable yet in the 2022/2023 financial year, UCDA contributed Shs 25.8 billion to the Consolidated Fund. We are financing the government to finance its other priorities,” said Alfred Okwir, the Manager, Planning and Business Development at UCDA.
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