Uganda: Bobi Wine Challenges Museveni's Claims of Coffee Industry Revival

4 November 2024

Robert Kyagulanyi, leader of the National Unity Platform (NUP), has criticised President Museveni for attempting to take credit for a purported revival of the coffee industry through Operation Wealth Creation, while ignoring the long-term damage inflicted by his administration.

In a statement released last week, Kyagulanyi accused Museveni of deliberately undermining Uganda's coffee sector and highlighted the president's decades-long influence on the country's political and economic landscape.

"I was taken aback last week as I read Gen. Museveni, who has been a central figure in Uganda's political and economic turmoil for over 60 years, boasting about supposedly reviving the coffee industry," he stated.

Kyagulanyi's critique is rooted in a broader narrative of neglect, pointing to the dismantling of key institutions, such as the Coffee Marketing Board, which historically supported coffee farmers.

When Museveni's government assumed power in 1986, it inherited a thriving coffee sector. However, rather than enhancing its operational efficiency, the administration chose to privatize it.

Kyagulanyi noted that this decision led to the sale of the Coffee Marketing Board's assets for a mere six billion shillings, despite an initial valuation of 33 billion shillings.

He argued that this represents a stark failure of leadership that has continued to plague the sector.

The NUP leader called for accountability regarding the Coffee Marketing Board's privatisation, questioning, "Can he account to Ugandans for why he privatised the Coffee Marketing Board, an institution that oversaw a sector employing many Ugandans and generating the country's top foreign exchange earnings?

His inquiries reflect a growing frustration among citizens regarding the lack of transparency in government dealings.

Kyagulanyi further argued that the privatisation was not only economically detrimental but also personally advantageous for Museveni's close associates.

"Assets belonging to other entities, such as Banyankole Kweterana, were taken over or bought cheaply by his close relatives!" This claim raises concerns about nepotism and corruption within the government.

He emphasised that Museveni's administration has historically underfunded the coffee sector.

For much of Museveni's tenure, the Uganda Coffee Development Authority (UCDA) operated on a meager 1% export levy.

It was only in 2013, after 27 years of governance, that any significant investment was made through Operation Wealth Creation, a program that ultimately fell victim to corruption and mismanagement.

Kyagulanyi described the fallout from this initiative, detailing how soldiers tasked with distributing coffee seedlings failed to connect with legitimate farmers, resulting in wasted resources and inadequate support for those engaged in coffee production.

"This crucial role had once been effectively handled by cooperative societies that Museveni dismantled when he came to power," he said.

In 2017, the UCDA introduced a "Coffee Road Map," aiming to increase production from 4.7 million bags to 20 million bags by 2030.

However, since its endorsement, Museveni's government has failed to allocate adequate funding, leading to budget cuts that have hampered the initiative's success.

Kyagulanyi questioned Museveni's sincerity, asking, "How can he then claim to be committed to the sector?"

The opposition leader also criticised Museveni's rhetoric surrounding "value addition" in the coffee industry, noting the absence of genuine efforts to enhance the sector for decades.

"If his government had supported the Coffee Marketing Board's efforts to process coffee back then, Uganda could have rivalled NESCAFE," Kyagulanyi stated.

He raised alarms about Museveni's partnerships with unqualified investors, particularly Enrica Pinetti, who was brought in to produce instant coffee without relevant experience in the sector.

Kyagulanyi condemned this choice, arguing it demonstrated a disregard for established industry players who could have significantly contributed to the sector's development.

Instead of empowering cooperative unions and experienced entities, Kyagulanyi noted that Museveni opted to channel substantial taxpayer funds into ventures associated with personal friends, highlighting a lack of accountability and transparency in government spending.

Kyagulanyi addressed the broader implications of Museveni's governance style, calling for a leaner government structure that focuses on efficiency rather than bloated bureaucracies.

Kyagulanyi emphasised the importance of preserving the UCDA as a strategic institution within Uganda's coffee sector, urging the government to engage in genuine consultations with stakeholders rather than imposing top-down decisions.

"Nothing speaks of dictatorship more than watching a regime push a bill opposed by coffee exporters, traders, processors, and the few remaining farmer cooperatives!" he said.

Recently, Museveni stated that since coming to power in 1986, his government has been working toward the socio-economic transformation of Ugandans.

"A country like Uganda is very rich; it has many national resources, but the problem is that the population does not know how to use these resources to live well in a modern way. That's why we have been advising them to move on two fronts: free education for all and wealth creation for all," he said.

Museveni explained that to achieve the desired socio-economic transformation, Ugandans need to engage in the money economy through four key sectors: commercial agriculture, manufacturing, services, and ICT.

"If you enter any of these sectors, you join the money economy. The majority of people were outside the money economy; they were just working for food," Museveni said.

"We have been educating Ugandans about commercial agriculture, emphasising intensive agriculture with high-value enterprises, rather than extensive agriculture that yields little money per acre."

Museveni also revealed that his government has successfully promoted the wealth creation gospel in many parts of the country, particularly the cattle corridor.

"In the cattle corridor, we have made significant progress; people have embraced dairy farming. However, many areas remain primarily focused on crops, where we are advocating for intensive agriculture to help those with small landholdings escape poverty.

When I first came here, there were many contradictory messages, but eventually, people listened to my guidance," Museveni said.

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