Uganda's coffee industry is facing a period of change as the government prepares to dissolve the Uganda Coffee Development Authority (UCDA), sparking a heated debate in Parliament and among the public.
This move is part of the government's Rationalisation of Agencies and Public Expenditure (RAPEX) initiative, aimed at reducing redundancy and improving efficiency across state agencies.
However, the potential impact on Uganda's coffee sector a key source of national income has many worried.
For years, the UCDA has been vital to the stability and growth of Uganda's coffee industry, overseeing roles such as certifying coffee quality, registering marketers, collecting and managing data, tracking international price trends, and promoting Ugandan coffee worldwide.
The UCDA has helped align coffee policies with broader economic goals, offering government advice on pricing and fostering expertise in coffee processing.
Many farmers and exporters believe the UCDA has successfully strengthened Uganda's presence in the global coffee market.
The proposal to dissolve the UCDA falls under the RAPEX strategy, which aims to consolidate government agencies to cut costs and improve service delivery.
According to the ICT Minister, the merger will streamline operations without significant job losses and could enhance Uganda's competitive position in the coffee market by encouraging value addition.
However, the decision has faced strong opposition from leaders such as Muhammad Muwanga Kivumbi, head of the Buganda Parliamentary Caucus, who argues that the UCDA's independence and specialised knowledge have been critical to the industry.
He notes that the Ministry of Agriculture, which will take over the UCDA's responsibilities, has a mixed track record in managing other agricultural sectors like fisheries.
Kivumbi also voiced concerns over Section 5 of the Coffee Amendment Bill, which would replace the UCDA's marketing structure with an auction system a change he calls a "satanic clause," warning that it could hurt farm gate prices and reduce earnings for small-scale farmers.
He further highlighted fears about the government's intentions, citing industrial agreements that could impact the sector adversely.
Critics argue that the proposed merger lacks sufficient protections for Uganda's coffee farmers against market fluctuations and could undermine efforts to promote Ugandan coffee internationally.
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As the bill awaits presidential approval, Uganda's coffee industry is at a crossroads. While the government promises that the changes will boost efficiency and value addition, stakeholders worry that dismantling the UCDA's established systems could weaken Uganda's position in the global coffee market.
Only time will tell if the changes will achieve their intended benefits or bring new challenges to one of Uganda's most important export industries.
