KANUNGU, March 28, 2025 — Kanungu district, located in the southwestern Uganda, borders the Democratic Republic of Congo [DRC] and is a key point for cross-border trade. The district’s Ishasha border links up with DRC, creating numerous trade opportunities in different products.
However, the presence of good market prices for coffee in Uganda has led to a disturbing trend whereby middlemen smuggle poor-quality coffee stocks from the neighbouring DRC through porous borders into the district. This has significantly impacted coffee quality, causing a drop in prices and undermining the local coffee market.
Kanungu district is home to 11 coffee cooperatives, many of which have suffered due to the influx of smuggled, defective coffee. As a result, these cooperatives are facing considerable losses, and the trust in the market has been eroded due to the poor-quality supplies smuggled into the area.
One such cooperative, the Kanungu Coffee Farmers Cooperative Society Limited, established in 2016 by members of the Kigezi Coffee Development Academy, was designed to improve coffee quality, provide credit, and offer marketing services to local farmers. However, it has struggled with quality control due to the influx of smuggled coffee from the DRC. This has led to the rejection of their coffee by buyers and a drop in prices.
Caleb Owomuhangi, the District Commercial Officer Kanungu, shared the impact: “In just three months, the price of a kilo of coffee has dropped from Shs 15,000 to Shs 13,000, a difference of Shs 2,000. This is a direct result of poor-quality coffee being smuggled into our markets.”
Owomuhangi explained that the communities near the DRC border are major coffee producers. “During the coffee season, middlemen take advantage of the situation, smuggling in premature coffee at low prices, which is of poor quality,” he said.
He also noted that the lack of regulatory bodies enforcing coffee quality standards in the DRC has compounded the issue. “The reduction in coffee production volumes this season is another concern. The government needs to continue addressing quality issues, especially after the abolishing of the Uganda Coffee Development Authority [UCDA] during the recent rationalisation of some of the government agencies. The Ministry of Agriculture should empower agricultural extension workers and parish chiefs to ensure full implementation of the Coffee Act, particularly to curb such practices,” he added.
Joshua Rukundo, the Secretary for Production in Kanungu, pointed out that smuggling is particularly common in the neighbouring sub-counties of Nyanga, Kihiihi, Kyeshero, and Kayonza. “Farmers in these areas often have close contacts with DRC farmers, and some even own coffee gardens in the DRC. Sometimes, they harvest premature coffee to prevent it from being stolen due to the instability in the country,” he explained.
Despite the challenges, Rukundo emphasised that local leaders are actively working on sensitising the community. “We are encouraging people to report anyone involved in smuggling or selling poor-quality coffee, so that they can be arrested and brought to justice,” he said.
Ahimbisibwe Gad Rugaju, the Deputy Resident District Commissioner for Kanungu, confirmed that security forces have already recognised the problem. “We have deployed surveillance teams to monitor and arrest anyone caught smuggling or selling low-quality coffee in the district,” he said.
Despite these efforts, coffee co-operatives in Kanungu continue to face multiple challenges, including price fluctuations, limited capital for business operations, unreliable power supply, and inadequate transport systems.
Banet Mwesigwa, the Chairman of the Kanungu Coffee Farmers Cooperative, noted the difficulties posed by limited financial resources. “We lack the capital to buy coffee from farmers, which leaves us at a disadvantage. Some farmers sell their coffee directly to individuals who offer a higher price. This has weakened the cooperative, and we are calling on the government to provide low-interest loans to help us compete in the market,” he said.
Story written by By Jacob Niwamanya
https://thecooperator.news/kanungu-constructs-lodge-out-of-tourism-revenue/
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