Uganda shifts coffee strategy from production to value addition

The government is shifting its coffee strategy from supporting production alone to building an integrated industry focused on value addition, industrialisation and export competitiveness, as it seeks to increase farmers’ incomes, create jobs and retain more revenue locally.

The shift, announced by the Permanent Secretary and Secretary to the Treasury, Dr Ramathan Ggoobi, will see public investment increasingly directed towards productivity, processing, quality improvement and market development from the 2027/2028 Financial Year.

Dr Ggoobi made the announcement during the National Coffee Strategic Retreat and Coffee Round Table held at Inspire Africa Coffee Park in Ntungamo District, where government officials, farmers, cooperatives, processors, investors and development partners discussed how to position coffee as a driver of industrialisation, tourism, investment and global commercial diplomacy.

He said Uganda’s coffee export earnings demonstrate the country’s strength in production but also expose the limited value it captures from the global coffee trade.

Uganda earned $2.5 billion (about Shs9.2 trillion) from coffee exports in 2025, after exporting 8.7 million 60-kilogramme bags, largely as unprocessed green coffee.

Dr Ggoobi said much of the value generated through processing, branding, distribution and retail is still captured outside the country, hence the need to invest in activities that move Uganda up the coffee value chain.

From the 2027/2028 Financial Year, government investment will increasingly prioritise irrigation, climate resilience, agricultural research, extension services, farmer aggregation, traceability, washing and grading facilities, laboratories, certification, industrial skills, market development and export promotion.

The government will provide the necessary infrastructure and policy environment, while the private sector is expected to lead commercially viable investments in roasting, packaging, soluble coffee, extracts and other high-value products.

Coffee tourism and public procurement will also be used to stimulate domestic consumption and open up new markets.

Dr Ggoobi said public support would be targeted, temporary and tied to performance, with investments assessed against improvements in productivity, competitiveness, exports, job creation and economic returns.

The Minister of State for Trade, Mr Sanjay Tanna, said Uganda must move from focusing mainly on coffee production to developing a competitive and integrated industry that delivers better returns to farmers and creates employment.

He said the retreat should move beyond discussions and produce clear priorities, institutional responsibilities, timelines and measurable results.

Mr Tanna identified value addition, quality improvement, branding, market access, competitiveness and stronger public-private partnerships as priority areas requiring urgent action.

He said the Ministry of Trade, Industry and Cooperatives was committed to improving the business environment and strengthening partnerships to attract investment and position Ugandan coffee competitively in domestic and international markets.

Mr Tanna urged stakeholders to develop practical and time-bound interventions to address bottlenecks across the coffee value chain.

The Chairperson of Inspire Africa Group, Dr Robert Lim Lim, described the Coffee Park as a platform for demonstrating Uganda and Africa’s transition from exporting raw coffee to processing, branding and accessing higher-value global markets.

He called for stronger partnerships in processing, research, innovation, quality standards and market development, adding that Inspire Africa was committed to working with government and industry players to build a competitive coffee ecosystem.

The retreat comes as government seeks to use coffee not only as an agricultural export but also as a foundation for industrial growth, investment and employment.