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Uganda Coffee Firms Sign Deal With Chinese Company

by Jacquiline Nakandi
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By John Odeke

Three Ugandan firms have signed an agreement with a Chinese company to add value to Uganda’s coffee, paving the way for additional foreign exchange earnings from the cash crop.

The Vice-President, Jessica Alupo, witnessed the signing of the Performance Agreements between China Construction and Communications Company (CCCC) and the three Ugandan coffee companies; Platinum Commodities, New Cafe and Mwanyi Terimba, to buy Ugandan coffee beans for value addition and branding promotion.

The ceremony took place yesterday (Wednesday, September 04) at CCCC headquarters in Beijing, China.

In 2023/24, Uganda’s coffee exports were 6.13 million bags valued at $1.1b (sh3.8 trillion).

This was an increase of 6.33% in volume and 35.29% in value, compared to the financial year 2022/23 when exports were 5.8 million bags, valued at $846m (sh3.2 trillion).

Due to effective regulation by the Uganda Coffee Development Authority (UCDA), coffee quality has greatly improved, resulting in high prices.

Currently, farmers. are earning the highest prices in 30 years, according to the UCDA.

The coffee roadmap target of 20 million 60kg bags produced by 2030 was set by President Yoweri Museveni in 2017. It set a target of foreign exchange earnings of $1.5b (sh5.6 trillion) annually from the 20 million bags.

Alupo is representing President Museveni at the Forum on China-Africa Cooperation (FOCAC), which starts today and ends on Friday.

Alupo, who was meeting a delegation from China Henan International Co-operation Group (CHICO), assured the Chinese business communities that Uganda welcomes their investments.

CHICO is a large-scale comprehensive foreign economic and trade enterprise under the jurisdiction of Henan Province.

The Vice-President disclosed that in 2012, CHICO was awarded a $34.5m (sh128b) contract to construct the 74km Gulu-Atiak road.

They will upgrade the Rukungiri-Kwishi-Ishaka-Kanungu road at a cost of $57m (sh212b). CHICO has been operating in Uganda and this project signals their continued operation.

She added that Uganda’s development plan focuses on; agro-industrialisation, tourism development, mining and mineral verification, including oil, gas, science and innovations.

CHICO’s chief executive officer, Xie Hui, said the company was set up in 1953, with the main businesses covering international engineering contracting and overseas minerals development.

Hui added that his company enjoys comparative advantages in fields, such as transportation, mining, water affairs, power and trade.

In another meeting, Alupo met officials from AVIC-INT Project Engineering Company, together with China CAMC Engineering Company Limited.

She hailed them for helping the country start cottage industries that are now creating jobs for the youth.

Alupo thanked China CAMC for the electrification of the industrial parks and free trade zones. The head of delegation of the two companies, Dr Elaine Kiew, said AVIC-INT has a new product known as energy storage, which can benefit Uganda by reducing off-grid power bills through power storage.

Other investments

The works minister, Gen. Katumba Wamala, called on the two companies engaged in solar power storage batteries to listen to the rising concerns from frustrated Ugandans about their short life span.

Foreign affairs minister Gen. Jeje Odongo urged the companies to take advantage of the new cassava production in Uganda to make starch, pharmaceuticals, alcohol, wines, among others.

In a meeting with the president of the Exim Bank of China at their headquarters in Beijing, Alupo underscored the need for balanced financing terms.

She thanked the bank for the support towards infrastructural projects, which are a bedrock for socio-economic transformation.

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