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President Yoweri Kaguta Museveni of Uganda

KAMPALA- President Yoweri Kaguta Museveni has signed the National Coffee (Amendment) Bill, 2024 into law as part of the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) policy aimed at streamlining public spending and reducing redundant administrative structures.

According to a statement issued last evening by the Presidential Press Unit, the president assented to the bill on December 20th 2024, following the fierce opposition and extensive debates, that Bill was approved during the plenary sitting on 6th November 2024.

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The passage of the Bill was marked by delays and objections from some Opposition legislators, with members of the National Unity Platform (NUP) staging a walkout in protest earlier before the item even came on the Floor.

During the consideration of the Bill, Hon Nathan Nandala-Mafabi (FDC, Budadiri County West) argued that dissolving UCDA would disrupt a sector critical to Uganda’s economy proposing a three-year delay to ensure a smooth transition.

Hon Mafabi had wanted to make an amendment that the commencement of this Act shall be after three years, giving a justification to give it time for the process of dissolution and Kioga County Member of Parliament Hon Moses Okot also expressed caution suggesting a grace period to allow the ministry to be fully prepared to manage coffee sector responsibilities effectively.

These proposal were rejected after the Attorney General, Kiryowa Kiwanuka, defended the integration emphasising that merging Uganda Coffee Development Authority with Ministry of Agriculture Animal Industry and Fisheries would improve coordination, reduce duplication and enhance efficiency and insisted that, once the Bill is gazetted, the transfer of UCDA’s responsibilities should proceed immediately, aligning with the Cabinet’s Rationalisation of Agencies and Public Expenditure policy approved in 2021.

The National Coffee (Amendment) Bill, 2024, was first read on 24 September 2024 and subsequently, referred to the Committee on Agriculture Animal Industry and Fisheries for scrutiny.

The Minister of State for Animal Industry, Hon Bright Rwamirama Kanyontore argued during the second reading in October that restructuring Uganda Coffee Development Authority as a department within Ministry of Agriculture Animal Industry and Fsheries would streamline operations, cut administrative costs and eliminate what he referred to as bloated structures and functional ambiguities.

The Chairperson of the Committee on Agriculture Animal Industry and Fisheries Hon Linda Auma, supported the merger, acknowledging the challenges but deeming the transition necessary for the coffee sector’s future and her committee report aligned with the government’s merger goal but recommended a three-year transitional period to prevent disruptions in the coffee value chain.

However, in a minority report,  Kimaanya-Kabonera Division Abed Bwanika cautioned against rapid implementation, proposing a five-year grace period to allow Ministry of Agriculture Animal Industry and Fisheries to establish the necessary systems and argued that a rushed merger could jeopardise Uganda’s coffee export accreditation, essential for international competitiveness and cited failures in neighbouring Kenya and Ethiopia as cautionary examples.

Parliament had initially passed the Bill, but it was returned by President Yoweri Museveni who raised concerns from coffee-growing regions like Bugisu and Buganda, whose Members of Parliament opposed the integration.

Consquently, the Speaker of Parliament Rt Hon Anita Among referred the Bill back to the Agriculture Committee for further consultations with the MPs encouraging lawmakers to balance government efficiency with farmers’ livelihoods, many of whom rely on Uganda Coffee Development Authority support and following these consultations, the Cabinet initially endorsed a three-year transition for the merger but later backtracked after a caucus meeting involving key lawmakers.

The Minister for Agriculture Animal Industry and Fisheries Hon Frank Tumwebaze, reassured Parliament that existing permits, licenses and certifications issued by Uganda Coffee Development Authority would remain valid under the new structure, ensuring continuity for coffee producers and exporters and said that UCDA employees might be absorbed into the public service.

During his remarks after the passing of the Bill, Hon Tumwebaze emphasised MAAIF’s commitment to enhancing the coffee value chain, assuring MPs that the ministry would maintain UCDA’s work in producing high-quality coffee varieties.

The UCDA established in 1991 under the Uganda Coffee Development Authority Act regulated Uganda’s coffee value chain, supported research and maximised earnings for stakeholders and Coffee remains a major export for Uganda, generated substantial national revenue and Uganda Coffee Development Authority role was central to this success.