Uganda: Buganda MPs Demand Withdrawal of Coffee Development Authority Merger Bill

5 September 2024

The merger is part of a broader rationalisation plan by the government to consolidate several entities, including the Dairy Development Authority (DDA), in a bid to streamline operations and reduce costs.

KAMPALA | The Buganda Parliamentary Caucus has voiced strong opposition to a proposed merger of the Uganda Coffee Development Authority (UCDA) with the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF).

The merger is part of a broader rationalisation plan by the government to consolidate several entities, including the Dairy Development Authority (DDA), in a bid to streamline operations and reduce costs.

However, Buganda MPs argue that merging UCDA would threaten the livelihoods of millions of Ugandan coffee farmers.

"Our prayer is that the president hears our call and withdraws the bill," said Muwanga Kivumbi, Chairperson of the Buganda Parliamentary Caucus.

"We cannot take coffee to a ministry that's already struggling," he added.

During a recent meeting that saw members from both the National Resistance Movement (NRM) and opposition parties present a united front, Buganda MPs reiterated their commitment to protecting UCDA's independence.

They argue that the authority, which oversees Uganda's coffee sector, must remain autonomous to safeguard the country's most valuable agricultural export.

Initially, the government proposed the immediate merger of UCDA with the Ministry of Agriculture.

Following significant resistance, Cabinet suggested a phased approach, keeping UCDA intact for three years before merging it with the ministry in 2027. However, Buganda MPs find this compromise equally unacceptable.

The MPs contend that the merger is premature and risky, given the Ministry of Agriculture's track record of inefficiency and mismanagement.

"Merging UCDA into a ministry that has historically underperformed could have disastrous consequences for the coffee sector," they argued.

Several members criticized the ministry's handling of past agricultural projects, describing it as "bedridden" and questioning its capacity to manage the dynamic coffee industry.

Coffee is the backbone of Uganda's economy, significantly contributing to household incomes and foreign exchange.

In the 2023/2024 financial year, coffee exports earned the country $1.5 billion (about Shs6 trillion), making it Uganda's top foreign exchange earner. Buganda MPs have emphasized these figures as proof of UCDA's success and the need to maintain its independence.

"The coffee industry is the lifeblood of this country, especially for our rural communities. We cannot afford to take a gamble with it by merging UCDA into a ministry that has historically underperformed," stated one opposition MP from Buganda.

Many echoed his sentiments, stressing the importance of UCDA's technical expertise and autonomy in sustaining Uganda's global competitiveness in the coffee market.

To bolster their campaign, Buganda MPs have begun consulting constituents across districts to gauge public opinion on the merger.

They believe that coffee farmers and the broader public will stand against any move that threatens the industry's stability.

The MPs have also formed a Parliamentary Coffee Platform, a caucus aimed at rallying lawmakers across political lines to oppose the proposed bill.

The resistance from Buganda MPs comes at a critical juncture, with the future of UCDA now a matter of national debate.

President Museveni has summoned the NRM parliamentary caucus to State House Entebbe to discuss the rationalisation plan, with the UCDA merger likely high on the agenda.

Reports suggest that members of Parliament's agriculture committee have also expressed reservations about the merger, joining the Buganda Caucus in questioning the Ministry of Agriculture's capacity to manage UCDA's responsibilities.

Opponents of the merger are not only concerned about the ministry's capabilities but also about the timing of the decision.

With global coffee prices on the rise, they argue that now is not the time to disrupt Uganda's most successful agricultural sector.

Uganda is Africa's largest coffee exporter and ranks among the top ten coffee producers globally.

Weakening governance of the coffee sector by dissolving UCDA, they warn, would undermine Uganda's competitiveness on the world stage.

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