President Museveni of Uganda has called upon Italian investors to contribute to the value addition of coffee in Uganda by establishing factories within the country. This plea was made during a meeting held at State House, Entebbe, where President Museveni engaged with a delegation from the Italian Agency for Development Cooperation (IADC), led by Stefano Gatti.
Encouraging Investment
President Museveni emphasized the need for capital investment from the private sector rather than government funding to facilitate the expansion of Uganda’s coffee industry. He highlighted the potential for increased coffee production, especially with the implementation of irrigation techniques. President Museveni assured the Italian investors of a conducive environment for business growth, aiming for accelerated progress with their involvement.
Significance of Coffee Industry
Coffee holds significant importance in Uganda, being one of the country’s top foreign exchange earners and a widely consumed commodity globally. The President’s call for investment in coffee value addition aligns with Uganda’s economic development goals and efforts to enhance the agricultural sector’s contribution to the economy.
Italian Market Share
Italy stands out as a key market for Ugandan coffee beans, holding a substantial market share according to the Uganda Coffee Development Authority (UCDA). The country’s premium coffee grades, such as organic Robusta and Screen 18 fair, command competitive prices in international markets, contributing significantly to Uganda’s export revenue.
Challenges and Past Initiatives
President Museveni has previously expressed frustration over the lack of large-scale value addition within Uganda’s coffee industry before exportation. Past initiatives, such as the Uganda Vinci Coffee Company Limited project, faced controversy and criticism, prompting calls for termination and parliamentary scrutiny.
Private Sector Collaboration
President Museveni reiterated the importance of private sector participation and profit-driven investment from European partners. He emphasized the abundance of natural resources, ample labor, and numerous investment opportunities available in Uganda, presenting a mutually beneficial proposition for investors.
Italian Development Cooperation
The visit of the Italian delegation to Uganda follows the Italy-Africa Summit, where Italy pledged a significant partnership investment to strengthen cooperation with African countries. Ambassador Gatti affirmed Uganda as a new priority country for Italy’s development cooperation, with a focus on enhancing the coffee sector.
