NTUNGAMO: LoP slams slow progress at Inspire Africa Coffee Factory despite gov’t funding

NTUNGAMO, December 16, 2024 – The Leader of Opposition in Parliament [LOP], Joel Ssenyonyi, has called on the government to exercise caution when allocating taxpayers’ money to private companies such as Inspire Africa Coffee, which is setting up a coffee factory in Ntungamo district.

Ssenyonyi made this remark during a recent visit to the Inspire Africa Coffee Factory, currently under construction in Ntungamo district. The factory, owned by businessman Nelson Tugume, who also serves as its CEO, has raised concerns among the opposition MPs about its slow progress despite substantial government funding.

Ssenyonyi expressed worry that Inspire Africa Coffee Factory could become one of many projects where the value for money has yet to be realised. He referred to several similar projects, stating, “We have visited several government-supported projects, but there is little to show for the taxpayers’ money.

For instance, at the Atiak Sugar Factory, Shs 553 billion was injected, yet no sugar has been produced. We visited Day Pharma in Matuga, where Shs 723 billion was invested, but as of December, no medicine has been produced despite promises of production by October. There is also the ROKO construction company, which has received Shs 263 billion, and at Lubowa Hospital, we were locked out and unable to access the site.”

He urged the government to always sign a memorandum of understanding [MOU] with private partners before allocating taxpayers’ funds. “An MOU ensures that in the event of a disagreement, both parties can seek legal redress. We need to see the MOU outlining how taxpayer money has been invested in this business and what returns are expected,” Ssenyonyi said.

The LoP also called for the government to revise its structure and processes for supporting private businesses, advocating for clear criteria and transparency in how support is distributed. “There are many people who want government support. We’re not saying the government shouldn’t support companies, but we want to understand the channels through which businesses access this support,” he explained.

The opposition leader also pressed the government for transparency regarding the exact amount of taxpayers’ money spent on the Inspire Africa Coffee Project, calling it an essential measure for accountability. “Lack of transparency and accountability is a form of corruption. As MPs, we want the government to disclose how much money has been invested in this coffee factory,” he added, emphasising that Ugandan taxpayers deserve to see value for their contributions.

Veronica Namaganda Nanyondo, the Woman Member of Parliament for Bukomansimbi district, questioned why government committed significant funds to the factory in an area with low coffee production. “Why didn’t you [Tugume] set up the factory in a region where coffee is widely grown, for cost-effectiveness? For example, in Bukomansimbi, we produce 8,213,005 bags of coffee. Why is the factory here and not in major coffee-growing regions?” she asked.

In response, Tugume urged MPs to support private enterprises, explaining that his coffee factory, once completed, will empower Ugandan coffee farmers.

He also highlighted that bureaucratic hurdles have been one of the major challenges faced by the project. “The biggest resistance we’ve faced has been government bureaucracy. I urge you, as MPs, to support this project, as its success could lead to similar initiatives in other regions of the country,” he said.

Tugume also called on the government to better support local private sector businesses if Uganda is to achieve meaningful development.

Out of the US$ 132 million invested in the project, Tugume disclosed that the government has so far committed US$ 20 million.

He added that several international partners are eager to support the factory once it becomes operational. “Apart from the government, we have partners, including one from Turkey, who are willing to invest over US$ 40 million into the distribution chain. Others are ready to invest over US$ 100 million into the supply chain, but they are waiting for production to begin around March next year,” Tugume explained.

He further appealed to the government to expedite the process of signing a co-investment agreement, ensuring that the government has a stake in the venture. “We don’t want anyone to give us money for free. We’ve already signed an MOU for the co-investment process, so the government will have a share of any money invested in the company,” he said.

Tugume also highlighted the unique nature of the coffee project, which will be the first of its kind in the world to produce 14 different coffee-based products, including cosmetics and roasted coffee. “Our coffee processing hub will produce 14 products. I don’t know of any factory in the world that produces 14 different coffee-based products,” he said.

Currently, the construction of the Inspire Africa Coffee Factory is 75 percent complete, with production set to begin in March 2025.

https://thecooperator.news/odrek-rwabogo-inaugurates-new-coffee-factory-in-bugisu/

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