Saudi Arabia, Ukraine open doors to Uganda’s coffee, tea

KAMPALA. Uganda’s coffee sector is set for a major boost as high-level engagements with Saudi Arabia and Ukraine open new markets for the country’s prized produce.

President Museveni’s recent meeting with a Saudi Arabian delegation led by Mr Ali O Alswayeh reaffirmed the Kingdom’s commitment to expand investment in Uganda’s agricultural sector, particularly coffee value addition.

The discussions, held at State House, Entebbe, focused on transitioning Uganda from exporting raw coffee beans to exporting branded, high-value finished products.

“We have been working together for a long time, but we have not fully engaged to maximise our investment opportunities,” Mr Museveni said. He emphasised that exporting finished goods rather than raw materials is key to increasing export earnings, creating jobs, and accelerating industrialization.

Central to this transformation is the Value at Source Coffee Project (VASP), spearheaded by Nonda Coffee, which includes the proposed Luwero Coffee Park. The integrated industrial complex in Luweero District is projected to process 42,000 metric tonnes of coffee annually, with a targeted revenue of $850 million. The facility will cover the full coffee value chain, including cleaning, grading, roasting, grinding, soluble and specialty coffee production, packaging, branding, and export of finished products.

The project is expected to create about 1,500 direct jobs, generate 3,000 indirect jobs in logistics, retail, and ancillary services, and integrate about 100,000 coffee farming households into a structured supply chain.

The Saudi market is seen as a strategic gateway to the broader Middle East, one of the fastest-growing coffee consumption regions globally. Expansion into this market is expected to increase demand for premium Ugandan coffee, strengthen bilateral trade ties, and create sustainable downstream markets for farmers.

Meanwhile, the newly appointed Consul of Ukraine in Uganda, Mr Jay Patel, has also highlighted opportunities for Ugandan coffee and tea in Eastern Europe.

Speaking at his inauguration last Saturday in Kampala, he noted the potential for both countries to benefit from trade and technology exchange in the agricultural value chain.

“Uganda and Ukraine share a common vision for growth. We see vast potential in agricultural value addition, moving beyond raw exports and processing, and technology exchange—whether it is Ukrainian machinery helping Ugandan farmers increase their yield or seeing world-class Ugandan coffee and tea reaching Ukrainian homes,” Mr Patel said.

Ukraine’s Ambassador to Kenya Yurii Tokar, who attended the event, acknowledged that while Ukraine faces the challenges of a full-scale war, the country continues to maintain active diplomacy and international partnerships. The opening of the consulate, he said, will serve as a platform for trade, investment, and industrial collaboration.

Ms Milly Babalanda, the minister for the Presidency, noted that Ukraine’s expertise in large-scale agriculture, grain production, farm mechanisation, irrigation systems, and agro-processing aligns with Uganda’s push for agricultural modernization and value addition. She emphasised that the consulate would strengthen bilateral relations anchored on sovereign equality, mutual respect, and international law.

During the Ukraine-Russia war in 2023, Uganda faced disruptions in wheat supply, revealing the country’s dependence on Ukrainian imports. The conflict has prompted local companies to invest directly in Ukrainian agriculture to secure supply chains. The new consulate is expected to expand similar collaborative opportunities in coffee and tea.

Both engagements underscore a shared commitment to investment-led growth, private sector development, and value addition as key drivers of Uganda’s economic transformation.