Uganda woos more Chinese investors into coffee sector

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Uganda has stepped up efforts to attract Chinese investment into its coffee sector, urging investors to tap into value addition opportunities as the country seeks to maximise earnings from one of its leading exports.

The appeal was made during the Uganda-China Coffee, Investment and Destination Conference held at Mestil Hotel in Kampala on Tuesday, April 21, 2026.

The conference was, among others, graced by a delegation of Chinese investors who have been in Uganda for the last 14 days studying investment opportunities in agribusiness and tourism, among others.

The investors toured the source of the River Nile in Jinja, Sino Uganda Mbale Industrial Park, Sipi Falls in Kapchorwa, Wagagai Gold Mining, Kapeeka Industrial Park, Ankole Coffee Producers Cooperative Union in Bushenyi, Bwindi Impenetrable National Park, Queen Elizabeth National Park and Clarke Coffee Farm and Estate in Kyenjojo district.

The permanent secretary in the foreign affairs ministry, Vincent Bagiire, disclosed that China remains one of Uganda's most important strategic partners.

“I am happy and glad that China upgraded our relationship to a strategic relationship, and through the Belt and Road Initiative, the Forum on China Africa Cooperation and growing people-to-people ties, our partnership continues to flourish. This conference is a practical demonstration of that enduring friendship,” Bagiire said.

He informed investors that Uganda has an investment-enabling policy with attractive incentives for value-addition industries beyond coffee.

“You have witnessed immense opportunities in tourism, infrastructure in minerals, agro processing and big technologies, where Chinese expertise and capital can deliver a transformative impact in Uganda,” Bagiire said.

He pledged that government will provide all the necessary facilitation and high-level support.

Exports surge

Uganda’s coffee exports to China have grown by 63 percent since May last year. According to Uganda’s Head of Mission in Beijing, Oliver Wonekha, in May 2025, they pioneered the Uganda-China Coffee Awareness Tour.

“It was our first step, a cautious but hopeful step. The results spoke for themselves following the tour. Our coffee exports to China surged by over 63%, moving from 74,000 bags to over 122,000 bags,” Wonekha said.

She said that they have since shifted the strategy of marketing Ugandan coffee and other products in China.

“We realise that you cannot truly commit to a market from a PowerPoint presentation in Beijing. You must smell the coffee roasting at the farm in Mbale. You must touch the beans at the washing station in Masaka,” Wonekha said.

The Chargé d’Affaires ad interim of the Chinese Embassy, Fan Xuecheng, lauded the conference as an instrumental event in promoting coffee investment and tourism, which are among the pillars of economic transformation towards Uganda’s Vision 2040.

He assured the Chinese investors of Uganda’s attractive investment environment.

“There is political stability in Uganda, under the strong leadership of President Yoweri Museveni,” he said.

He told them that Uganda, which is already experiencing 6% economic growth, has enormous investment opportunities, with its oil production starting this year.

In recent years, Fan said bilateral cooperation between China and Uganda has achieved fruitful results under the framework of the Belt and Road Initiative and the Forum on China-Africa Cooperation.

“Since December 2024, China has given all the least developed countries having dramatic relations with China, zero tariff treatment, 400% tariff lines, including Uganda, and we will expand it to 53 African countries having collaborations with China,” Fan said.

The total trade value between China and Uganda, Fan said, reached $2.1b (sh7.7 trillion), representing a 43.5 percent annual surge in trade.

“Uganda exports to China amounted to approximately $130.8m (sh483.9b) with an increase of 73.8% coffee export ranking the first earning $62m (sh229.2b) and increase of 99.3%.”

Uganda’s coffee exports have hit 8.8 million bags, earning $2.5b (sh9.2 trillion), increasing from 41 percent to 61 percent.

According to the agriculture ministry, 93 percent of Uganda's coffee is exported as raw beans. Only 7 percent is exported as finished products, which presents an opportunity for investors to take advantage.

Value addition gap

The chief executive officer of the Private Sector Foundation Uganda, Stephen Asiimwe, invited Chinese partners to invest across the coffee value chain, from production and processing to logistics and marketing.

“Uganda offers strong investment opportunities across agriculture, tourism, real estate, construction, and manufacturing,” Asiimwe said.

In agriculture, Asiimwe said sectors like cocoa and horticulture benefit from favourable conditions for year-round production, with growing potential in value addition, processing and export logistics.

“Tourism continues to expand, driven by Uganda’s rich natural and cultural attractions, while rapid urbanisation is increasing demand for housing, commercial infrastructure, and industrial parks,” Asiimwe said.

He added that, at the same time, the manufacturing sector presents opportunities in agro-processing and light industry, supported by government incentives and access to regional markets.

“The Uganda-China partnership has strong foundations. Together, we can build on them to create a future defined by innovation, trade, and inclusive growth,” Asiimwe said.

Paul Zhang, the chairman of Tian Tang Group, who has spent over 25 years in Uganda, assured Chinese investors of a ready market that extends beyond Uganda to the region.

“Uganda is part of the East African Community, which has a population of over 200 million people. So, under this market and the East African laws, Ugandan products can be sold in the region under favourable terms,” Zhang said.

The head of the Chinese investors’ delegation, Ding Zuowei, general manager in the international business department at Wuxi Jiangnan Cable Company Limited, expressed confidence that his team had developed interest in returning to invest in Uganda, including in the coffee value chain.