The Parliament of Uganda has approved the National Coffee (Amendment) Bill, 2024, incorporating the Uganda Coffee Development Authority (UCDA) into the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF). This decision aligns with the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) strategy, aimed at optimizing public finances and minimizing overlapping administrative bodies.
Despite significant resistance and intense discussions in recent months, the Bill was passed during the plenary session on Wednesday, November 6, 2024.
The Bill’s approval faced delays and opposition from certain legislators, with National Unity Platform (NUP) members staging a walkout before the item was introduced on the Floor. During the bill’s review, Hon. Nandala-Mafabi (FDC, Budadiri County West) contended that dissolving UCDA could destabilize a crucial sector of Uganda’s economy, suggesting a three-year delay for a smoother transition.
“I propose an amendment that the commencement of this Act be delayed by three years to allow ample time for the dissolution process,” stated Nandala-Mafabi.
Hon. Moses Okot (FDC, Kioga County) also advocated for caution, recommending a grace period for the ministry to prepare adequately for managing coffee sector responsibilities.
“The coffee sector must be approached with great care. I align with the suggestion that, if this House decides on rationalization, a grace period of two to three years should be provided to prepare the ministry for the transition,” he said.
However, this recommendation was turned down.
Attorney General Hon. Kiryowa Kiwanuka defended the integration, stressing that merging UCDA with MAAIF would enhance coordination, cut redundancies, and boost efficiency. He asserted that, upon the Bill’s publication, UCDA’s functions should be seamlessly transferred, in line with the Cabinet’s RAPEX policy adopted in 2021.
The National Coffee (Amendment) Bill, 2024, was initially tabled on September 24, 2024, and referred to the Committee on Agriculture, Animal Industry, and Fisheries for detailed review.
During the Second Reading in October, Minister of State for Animal Industry, Hon. Bright Rwamirama, argued that restructuring UCDA as a department within MAAIF would simplify operations, lower administrative expenses, and eliminate “overstaffing and functional ambiguities.”
Committee Chairperson Hon. Linda Auma supported the merger, acknowledging the associated challenges but considering it necessary for the future of the coffee sector. Her committee’s report echoed the government’s merger objective but proposed a three-year transition to mitigate any potential disruptions to the coffee value chain.
In a dissenting report, Hon. Abed Bwanika (NUP, Kimaanya-Kabonera Division) cautioned against rapid execution, recommending a five-year grace period to allow MAAIF to build the necessary systems. He warned that a rushed integration might threaten Uganda’s coffee export certifications, critical for international competitiveness, citing failures in neighboring Kenya and Ethiopia as cautionary tales.
The Bill had previously been passed but was returned by President Yoweri Museveni due to concerns raised by MPs from coffee-producing regions such as Bugisu and Buganda, who opposed the integration. Speaker Anita Among referred the Bill back to the Agriculture Committee for further consultation, urging legislators to balance government efficiency with protecting the livelihoods of farmers who benefit from UCDA’s support.
After these consultations, the Cabinet initially agreed to a three-year transition period but later reversed this decision following a caucus meeting involving key MPs.
Hon. Frank Tumwebaze, Minister of Agriculture, assured Parliament that existing permits, licenses, and certifications issued by UCDA would remain valid under the new arrangement, ensuring continuity for coffee growers and exporters. He also addressed concerns regarding staff, indicating that UCDA employees could be absorbed into the public service.
In his remarks following the bill’s passage, Tumwebaze highlighted MAAIF’s dedication to advancing the coffee value chain, reassuring MPs that the ministry would continue UCDA’s efforts in producing high-quality coffee varieties.
“With your backing, we will ensure our laboratories stay accredited and that our research continues to elevate Uganda’s global coffee profile,” he said.
In October, Speaker Among facilitated a Division Lobby (headcount vote), which saw 159 MPs voting in favor of the Bill, while 77 opposed it.
Established in 1991 under the Uganda Coffee Development Authority Act, the UCDA managed Uganda’s coffee value chain, supported research, and maximized earnings for stakeholders. Coffee, being one of Uganda’s primary exports, has significantly contributed to national revenue, with UCDA playing a key role in this achievement.
