The Leader of the Opposition, Hon. Joel Ssenyonyi, has urged the government to halt any further disbursement of funds to Inspire Africa Coffee, a private company receiving public financing to establish a coffee processing facility in Ntungamo District for advanced value addition.
Ssenyonyi argued that funding should be suspended until the government clarifies the terms of the partnership. He noted that during his visit to the factory on December 24, 2025, alongside other MPs from the Shadow Cabinet, no formal agreement outlining the collaboration between the government and the company was found.
“We discovered that there is no Memorandum of Understanding between the Government of Uganda and this entity. The manner in which public funds were allocated remains unclear. It is inappropriate for taxpayers’ money to be utilized without a defined contractual arrangement or supporting documentation,” Ssenyonyi stated.
He elaborated that although the proprietor, Nelson Tugume, attempted to describe a co-investment framework, there was no clarity on whether this constituted joint ownership, a grant, or financial rescue support.
Ssenyonyi made these remarks while presenting a report on his oversight visit to the factory during a parliamentary session chaired by Speaker Anita Among on Tuesday, February 11, 2025.
He further raised concerns regarding the value for money, pointing out that Tugume could not specify the total amount the government had injected into the project.
“The government must disclose how much has been spent on this initiative. A cost-benefit analysis should be conducted to assess the viability of this investment,” he emphasized.
Ssenyonyi warned that lack of transparency in the use of public funds fuels skepticism, especially when financial support is extended to a select few.
He also proposed the establishment of similar coffee processing plants in Bugisu and the central region in line with the National Development Plan III. He argued that it would be impractical for farmers from distant regions to transport coffee to Ntungamo for processing.
The Opposition leader called for a clear framework outlining how private enterprises can access government funding.
“Uganda has many young and innovative entrepreneurs who struggle due to inadequate capital. If the government establishes clear guidelines, more Ugandans could benefit instead of just a select few,” he added.
During the 2023-2024 financial year, the government committed to setting up a Tertiary Hub for Last Mile Coffee Value Addition in Ntungamo District through the Science, Technology, and Innovation Secretariat in the Office of the President. This initiative was structured as a public-private partnership with the Coffee Investment Consortium Uganda (CICU) and Inspire Africa Coffee.
According to Tugume, the factory aims to produce a variety of coffee products, including instant coffee, drip coffee, malt coffee, coffee energy drinks, and beauty cosmetics.
Uganda remains the leading coffee exporter in Africa and the second-largest producer on the continent, having shipped 6.13 million bags in the 2023/2024 financial year, generating revenue of US$1.14 billion.
