Coffee processing is the way to go

Jul 18, 2009

UGANDA opened its first factory that gets coffee from farmers and processes it to its final product for sale locally and for export. It is the first factory in Africa to produce coffee for European markets.

UGANDA opened its first factory that gets coffee from farmers and processes it to its final product for sale locally and for export. It is the first factory in Africa to produce coffee for European markets.

We salute the proprietors of The Good African Coffee factory, the farmers and all Ugandans on this achievement. It may have taken us more than 20 years to see total value addition achieved from raw coffee, which has been our main export product, but at least we are there.

Apart from the direct benefits to the farmers accredited to supply the factory, Ugandans will benefit from job creation, tax contributions, quality products and returns on investment.

Uganda loses $19 per kilogramme of coffee by exporting it in raw form, President Yoweri Museveni has often said. “This means that in every kilogramme of coffee Uganda is donating $19 to the outside world. We do not only donate money, but we also donate jobs,” he told heads of states at the opening of CHOGM in 2007.

The Government invested $995,500 (around sh2.2b) into the company as part of a private-public partnership; this is expected to be repaid with interest by 2013.

The public, therefore, has a stake in the factory and a right to demand proper financial practices. This is the first venture of its kind. Let us contribute to its success, so that it does not go down the same path as Tristar and Basajjabalaba’s Hides and Skins. Let other investors follow the example and make the transformation of society a reality.

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