Uganda grants the coffee company exclusive rights to their harvest


Lawmakers in Uganda, Africa’s largest coffee exporter, are demanding the end of a government agreement that gives a single company the exclusive right to buy the country’s coffee and is seen as unfair to local exporters.

Parliament’s Trade Committee to review ‘controversial’ February deal with Uganda Vinci Coffee Company Ltd. are investigating on the conditions, the Kampala-based legislature said in a statement on its website, citing spokeswoman Anita Among.

The deal signed between the Ministry of Finance and Uganda Vinci prohibits anyone from buying the country’s crops until “this company gets the quota they want,” lawmaker Abed Bwanika said in the statement.

Uganda Vinci has the right to set the price of the goods, he said, without specifying when the pact would come into effect.

As part of the deal, which also exempts Uganda Vinci from all taxes, the company will construct the first finished product processing plant in the country, worth $80 million, the Ministry of Finance said yesterday.

The deal is seen as a key part of the government’s effort to more than double coffee production to 20 million bags a year by 2030.

“Uganda Vinci pays for the highest quality coffee beans at a premium price that is set transparently and is no less than the price approved by the Uganda Coffee Development Authority,” the Ministry of Finance said in a tweet. Green coffee exports will continue and be dictated by market forces, it said.

The coffee trade in Uganda is liberalized and farmers receive about 80 percent of the beans’ export price, according to the country’s coffee regulator.

The country exports most of its harvest mainly to countries such as Italy, Germany, the US and Spain and can produce up to 9.1 million 60-kilogram bags by September. Uganda grants the coffee company exclusive rights to their harvest

Fry Electronics Team

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