Kampala — Uganda has become the first country in Africa to open a coffee roasting and packaging factory that will retail its products directly to European markets.

Good African Coffee Ltd was opened last Friday by President Yoweri Museveni. The president noted that Uganda and Africa as a whole have been losing a lot of revenue because of not adding value to their exports.

"Total business from coffee in the world amounts to $144 billion. Out of this, all coffee growing countries including Brazil get $15billion," Museveni explained.

He said $130 billion goes to the importing countries.

He said whereas 1kg of coffee beans costs $1 that of processed coffee costs $15. "This factory is a step to liberation because the country will retain the money it has been losing for lack of value addition," he said.

Good African chief executive officer Andrew Rugasira said the $1million roasting and packaging plant has a capacity of 3 million kg per year.

Good African Coffee, launched in 2003, now boasts of operations within Uganda that run from coffee growing with over 14,000 Arabica farmers in Kasese, Western Uganda, to packaged production for export.

"Today we celebrate a landmark not just as a company but as Africa the continent. This is the first time an African company is capturing the complete value chain and exporting to Europe," Rugasira noted.

Good Africa is also the first company to be contracted to supply coffee roasted and packaged direct to global supermarket chains like Tesco's, Sainsbury and Waitrose in the UK, and Shoprite Checkers of South Africa.

To date the company has invested over $2.5m in developing the farmer infrastructure in Kasese, and growing the brand globally to attain markets in UK and South Africa.

Rugasira also said they will be processing coffee from other East African countries like Tanzania and Rwanda. The company has embraced fair trade where it shares 50% of its profits with growers and their communities and currently employees over 120 people.

"With this kind of expansion we hope to absorb more labour," Rugasira said.