Uganda’s Coffee Chronicles: The Bitter Aftertaste of Privatization and the Fight for Fairness

Uganda Today Edition: Uganda’s Coffee Chronicles: The Bitter Aftertaste of Privatization and the Fight for Fairness

Introduction:

The complex tale of Uganda’s coffee industry reveals much more than an economic narrative. In recent reflections by Hon. Francis Mwijukye, MP for Buhweju County, and picking lessons from the works of scholars like Mahmood Mamdani, it becomes clear that Uganda’s coffee journey has been marred by external pressures, political maneuvering, and systematic erosion of farmer autonomy. The liberalization drive championed by the IMF and World Bank, and embraced by Ugandan elites, has led to the disenfranchisement of local farmers, casting a long shadow over the industry.

The Privatization Push and Its Implications:

In the 1990s, under the guise of economic liberalization, Uganda saw the dissolution of the Coffee Marketing Board (CMB), with vast impacts on cooperatives and farmers’ unions. This dismantling of the CMB, heavily pushed by the IMF, World Bank, and some Ugandan allies, weakened local farmers’ influence and placed foreign entities at the heart of the trade. In his book Scholars in the Marketplace, Mamdani notes that Uganda’s leadership, fresh from the bush, saw this as a moment to seize control of national assets, leading to the impoverishment of countless Ugandans.

“It was a conspiracy of the IMF, World Bank, and NRA/M, all too eager to liberalize the market at the expense of our agrarian economy,” Mwijukye says. Despite initial global support for Uganda’s coffee industry, it has since become one where foreign traders now control up to 75% of the market, siphoning wealth away from Ugandan farmers.

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UCDA’s Role and Challenges:

With the dissolution of CMB, the Uganda Coffee Development Authority (UCDA) was established to guide quality and productivity in the coffee sector. 13 years back since the ascendency to Buganda’s Katikkiro office, Buganda’s Katikkiro Charles Peter Mayiga, campaigns such as Mwanyi Terimba have boosted quality and output. UCDA’s objective has been to ensure quality coffee beans, countering narratives that emphasize value addition as a solution while undermining local farmers.

However, UCDA’s efforts face continued challenges as larger political forces vie for control. Nelson Tugume’s Coffee Investment Consortium Uganda (CICU) and individuals like Odrek Rwabwogo have introduced high-level investments, signaling attempts to assert control over the coffee sector through politically-backed ventures. The rhetoric of rationalisation in which UCDA is lumped, doesnt hold any water because at its inception , UCDA didnt require government funding from consolidated funds as its opertions and administration costs were fully catered for from the 1% levy from coffee exports. Explains economist Dr. Ezra Suruma: Ezra Suruma Counters Museveni Argument on UCDA  

The “Value Addition” Debate:

“Value addition” has become a buzzword among Uganda’s elites, yet critics argue it’s a poorly conceived approach that overlooks farmers’ true value. Kenyan economist David Ndi critiques the notion, asserting that the highest quality coffee is ground where it’s consumed, not where it’s grown. For Ugandan coffee farmers, “value addition” translates to producing top-tier beans—a priority that UCDA has upheld. In developed economies and even in Uganda, cities are awash with coffee cafes and trained barristas who grind coffee on an alarcate menu. Read: Volcano Cafe Finds  U.S Market For Uganda Coffee +256 772 992 621

Museveni’s Political Influence and Farmer Disempowerment:

Mwijukye warns that President Museveni’s transactional politics prevent the growth of an empowered populace, aiming instead to maintain control over economically marginalized Ugandans. He cautions that Museveni’s push into the coffee industry under the guise of “value addition” masks a deeper agenda to concentrate wealth and power. Indeed, as Mwijukye observes, “What will kill a man begins as an appetite.”

Conclusion:

The story of Uganda’s coffee sector is a powerful example of the intersection between international influence, national political interests, and the struggles of local farmers. As control over coffee production shifts toward well-connected individuals, Uganda’s small-scale farmers are left to bear the weight of policies that favor the few. For Uganda to genuinely reclaim its coffee legacy, the value must return to the hands of those who toil the land—Ugandan farmers.