KAMPALA, October 18, 2024 — 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 move to streamline public entities, has sparked significant debate. Many MPs argued that dissolving UCDA 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 Linda Auma.
During yesterday’s committee meeting chaired by Bugweri District Woman Representative Rachel Magoola, which is currently reviewing the Rationalisation Bill, Michael Lulume Bayigga, Vice Chairperson of the Buganda Parliamentary Caucus and Member of Parliament for Buikwe County South, voiced strong opposition to the proposal.
Bayigga described the Agriculture ministry, the institution set to absorb the UCDA’s functions, as inefficient and incapable of managing the coffee sector.
The MP 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 Shs 82 billion in the last financial year,” he said.
On his part, Nathan Nandala-Mafabi, Budadiri West MP and 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 [the agriculture ministry].
Such a transition, Nandala-Mafabi explained, 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,” said Nandala-Mafabi.
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.
The legislators’ 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.
They 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.
https://thecooperator.news/agriculture-committee-wants-ucda-retained/
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