During a visit to the Inspire Africa Group industrial hub on Tuesday, President Yoweri Museveni reaffirmed the government’s support for the organization, which focuses on adding value to Uganda’s coffee.
Despite opposition to this support, Museveni emphasized the importance of enhancing the coffee value chain to boost the country’s earnings.
Highlighting the disparities in the global coffee market, President Museveni noted, “The global value of the coffee business is $460 billion. Out of this, coffee-producing countries in Africa, Asia, and Latin America collectively earn only $2.5 billion, with Africa’s share being a mere fraction.” He contrasted this with Germany, a non-coffee-producing country, which earns a staggering $65 billion from the coffee industry. “This is a haemorrhage of value,” Museveni remarked, emphasizing the lost potential for coffee-producing nations.
Museveni elaborated on the economic benefits of processing coffee locally. “I may get $2.5 per kilo with some processing, but without it, you lose money and other support services such as roasting, grinding, packaging, and transporting,” he said.
He stated that the government is now focused on coffee value addition, following successful initiatives in the milk sector, and plans to extend this approach to bananas, minerals, and other sectors.
“We have dealt with the milk, and now we are dealing with coffee. We are going to deal with bananas and minerals, making Uganda an example for the rest of Africa,” Museveni said, adding that Africa’s GDP should be much higher than its current $3.5 trillion.
The President criticized the export of unprocessed coffee, which earns Uganda $2.5 per kilo, compared to $40 per kilo after processing in non-coffee-producing countries like Japan. He called for a united effort to add value to Ugandan coffee, terming it as “Chapter One” of this initiative.
Museveni promised to support the completion of the Inspire Africa Group’s factory, which is currently 60% constructed, and addressed those opposing the project. “Tugume [the factory owner] was telling me what is required to complete it, and I am going to support him,” he assured, warning those threatening coffee farmers that he “will deal with them.”
He encouraged the local community in Ntungamo to unite and support Mr. Tugume, emphasizing that the factory would boost the local and national economy. Minister of Science, Technology and Innovation, Ms. Monica Musenero, lauded Museveni for his involvement in the project. “Your Excellency, I hope I am doing the work you sent me to do, and I hope you will give me feedback,” Dr. Musenero said.
Mr. Tugume expressed gratitude to President Museveni for his support, noting that the factory would provide employment opportunities and improve livelihoods.
The visit was attended by ministers, Members of Parliament, Ntungamo District leaders, coffee farmers, and religious leaders.
Since 2023, the government has been investing in the coffee value chain through the Coffee Investment Consortium Uganda (CICU) to increase export revenue, create jobs, and raise farm gate prices. The CICU unites coffee stakeholders to add value and promote the export of value-added coffee from Uganda. In the Financial Year 2023/2024, the government allocated resources through the Science, Technology, and Innovation Secretariat to establish a modern industrial coffee park in Rwashamaire Town Council, Ntungamo District. The construction, which began in October 2023, is expected to be completed by December 2024, and aims to increase Uganda’s coffee revenue from $1 billion to $4 billion.
