TATA to make instant coffee in Jinja

Oct 24, 2006

A LEADING multinational Indian firm is to set up an instant coffee processing plant in Jinja. The agreement was signed in Kampala yesterday by finance minister Ezra Suruma and TATA Coffee (U) Ltd chief Shalendra Kundra.

By Felix Osike

A LEADING multinational Indian firm is to set up an instant coffee processing plant in Jinja. The agreement was signed in Kampala yesterday by finance minister Ezra Suruma and TATA Coffee (U) Ltd chief Shalendra Kundra.

Suruma said the Government had provided 50 acres of land, tax incentives and other utilities. Uganda is a major organic coffee producer.

“For over 100 years we have never had a chance to process coffee. For the first time Uganda will export instant coffee. This is an important development,” Suruma said.

The agreement follows President Yoweri Museveni’s invitation of Tata to invest in Uganda after the world’s leading processor Nescafe declined. Kundra said the company was investing $20m (sh36b) in the deal.

Production is expected to start in 24 months. The factory will require at least 10,000 tonnes of coffee per year.

Museveni has emphasised the need for value addition to exports.
The Government and Libya also plan to set up a soluble coffee plant in Namanve Industrial Park at about $25m (sh50b).

Mt. Elgon Coffee is also planning to put up a roasting plant in Tororo for export to its sister company in Denmark.

The three firms when operational will process only 20% of the coffee produced, create about 1,200 jobs and bring in about $2b.

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