Moses Kayz Osiya. Photo/Courtesy
On November 6, Parliament passed the National Coffee (Amendment) Bill, 2024. The Bill seeks to integrate the Uganda Coffee Development Authority (UCDA) into the Agriculture ministry.
This move is part of the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) policy aimed at streamlining public spending and reducing redundant administrative structures.
Globally, coffee is the most sought-after commodity after oil. Caution should be taken to treat coffee as a core strategic commodity for its global competitiveness and international recognition. Dissolving UCDA disrupts a sector critical to Uganda’s economy.
I think the merger of UCDA was rushed. More time should have been created to save the agency.
Much as the government looks at the merger as a way of improving coordination, reducing duplication and enhancing efficiency, we have seen a number of ministries grappling with their internal mess. Therefore, what does the addition of UCDA mean for the Agriculture ministry?
The UCDA, established in 1991 under the Uganda Coffee Development Authority Act, regulated Uganda’s coffee value chain, supported research and maximised earnings for stakeholders.
UCDA just needed reforms to fully implement Uganda’s coffee roadmap and unlock the sector’s full potential.
Vietnam, one of the world’s leading producers of coffee, reached here largely due to an incentivised regime. They established a coffee co-ordination board separate from the traditional ministries to oversee the coffee value chain.
The government of Vietnam financed key value chain actors, including the production of high-yielding seedlings, irrigation schemes, fertilisers and micronutrients.
This initiative, which was popularly known as the green revolution economy, enabled Vietnam to dramatically increase its coffee production. In a decade, the country went from producing one million bags of coffee in 1990 to 15 million by 2000. Today, it produces 30 million bags and ranks second globally in coffee production.
The coffee roadmap aims to produce 20 million bags by 2030. Uganda currently ranks 6th globally in coffee production and I believe it has been the good work of the UCDA.
The Coffee Levy stipulated in the National Coffee Act of 2021 intended to finance the coffee sector should be reviewed and ring-fenced to directly remit to UCDA.
Managing Uganda’s coffee sector effectively while retaining UCDA requires a multi-faceted approach that strengthens the existing framework, enhances collaboration among stakeholders, and encourages innovation and investment.
UCDA’s capacity should have been enhanced to focus on training and capacity building for staff to improve operational efficiency and effectiveness in implementing policies and programmes. This way, their roles and responsibilities could be clearly defined.
By focusing on these strategies, Uganda could have enhanced the management of its coffee sector without needing to dissolve the UCDA.
Dissolving UCDA exposes Uganda’s coffee sector to several significant risks that could undermine its stability, growth and overall contribution to the economy.
Over time, UCDA has accumulated valuable knowledge and expertise in coffee production, processing, marketing, and research. Dissolving it poses a significant loss of this institutional knowledge. Transferring responsibilities to other bodies may create gaps in expertise and leadership during the transition period, which can hinder operations.
Also, researchers are now more likely to lose access to funding and resources currently channeled through UCDA, further stifling advancements in the coffee sector.
Moses Kayz Osiya is a lawyer and businessman
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