President Yoweri Kaguta Museveni has signed the National Coffee (Amendment) Bill, 2024, into law.
This means effectively dissolving the Uganda Coffee Development Authority (UCDA) and transferring its functions to the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF).
The bill, passed by Parliament on November 6, 2024, amid significant controversy and debate, is part of the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) policy, aimed at streamlining public spending and reducing redundant administrative structures.
The dissolution of UCDA has been met with mixed reactions. Proponents argue that integrating UCDA’s functions into MAAIF would enhance coordination, reduce duplication, and improve efficiency in the coffee sector.
However, opponents, including some Members of Parliament and stakeholders in coffee-growing regions, expressed concerns that the move could disrupt a sector critical to Uganda’s economy. They fear it may compromise quality control, research efforts, and the livelihoods of millions who depend on coffee farming.
During the parliamentary debates, there were calls for a transitional period to ensure a smooth integration of UCDA’s functions into MAAIF.
Some legislators proposed a three-year delay to allow the ministry to build the necessary capacity to manage the coffee sector effectively. However, these proposals were ultimately rejected, and the bill was passed without provisions for a transition period.
The coffee sector is a significant contributor to Uganda’s economy, employing approximately 12.5 million people along the value chain and accounting for about 55.5 percent of agricultural exports in the fiscal year 2023/2024.
The integration of UCDA’s functions into MAAIF is expected to have far-reaching implications for the regulation, promotion, and development of the coffee industry in Uganda.
President signs coffee bill into law, dissolving UCDA
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