Uganda pulls out of global coffee treaty
Uganda has announced its decision to withdraw from the International Coffee Treaty, with effect from February 2022, according to Uganda Coffee Development Authority (UCDA).
The managing director of the Uganda Coffee Development Authority (UCDA), Dr Emmanuel Lyamuleme Niyibigira, communicated the decision to the International Coffee Organisation (ICO) on September 10.
“We would like to notify the Depositary that the government of Uganda will not join the extension of the ICA (International Coffee Agreement) 2007 beyond February 1, 2022. We hereby request the ICO Secretariat to circulate this communication to all members of the organisation,” the notice reads in part.
According to local news reports, Dr Emmanuel Lyamuleme Niyibigira did not give reasons for Uganda’s withdrawal despite numerous efforts to get him to explain the decision. His refusal to address the matter has, however, led to many speculating that the move was made without the approval of the board and government.
As a result, industry experts in the country have predicted that the sudden decision may affect the country’s eight million coffee farmers and Uganda’s position as the number one exporter of the crop on the continent.
Mr Usher Wilson Uwere, the President of National Organisation of Trade Unions, yesterday aired his opinion on the issue, saying the move is not only scandalous but will also make local coffee lose market.
According to him, the ICO serves as the forum for intergovernmental consultations and facilitates international trade by promoting transparency and promoting a sustainable coffee economy for all coffee stakeholders.
“Access to a range of services, data, knowledge, strategic, commercial, and development partnerships, among producing and importing countries as well as with development organisations and financial institutions are also key factors that members value as part of their participation and integration in the International Coffee Agreement,” he said.
Mr Robert Kabushenga, the proprietor of Regyeyo Coffee, also commented on the matter, saying.
“We really are our own worst enemies. And we are hiring clueless keyboard warriors in an empty boast about being the leading exporter of coffee. Wasting money on a half-baked marketing campaign. We have just screwed 8 million Ugandans whose livelihood is coffee,” he tweeted.
Uganda exported a record 6.08 million coffee bags in 2020-2021, the highest total for 12 months in 30 years as exports value reached a record-high of $559m compared to 5.11m bags worth $496m in FY19/20.
According to the Uganda Coffee Development Authority (UCDA), the biggest consumer of Ugandan coffee was Italy, with a market share of 34.57%, followed by Germany 13.11% (14.36%), India 9.52% (5.00%), Sudan 7.81% (4.04%) and Algeria 6.28% (5.80%). Europe remained the main destination for Uganda’s coffees with a 61% imports share, while Coffee exports to Africa amounted to 112,416 bags, a market share of 18%.
The ministry said Uganda, already Africa’s largest coffee exporter, could overtake Ethiopia as the continent’s largest coffee producer. However, the sudden decision to pull out of the treaty could affect the country’s vision going forward.
