Kampala, Uganda, 2 July 2018 – Uganda Coffee Development Authority (UCDA) and Uganda Development Bank Ltd (UDBL) have signed a Memorandum of Understanding (MOU) to accelerate production and export of Uganda coffee.
This is in line with the Coffee Roadmap launched by H. E. the President of Uganda, Yoweri K. Museveni in April 2017. The roadmap spells out nine transformative initiatives to implement a presidential directive to increase coffee production from 4.6 million 60 kg bags to 20 million. The 4th initiative of the Coffee Roadmap focuses on strengthening farmer organisations and producer cooperatives to enhance commercialization of smallholder farmers and ensure broad access to extension, inputs, finance and aggregation and promotion of value addition including primary processing. While the 9th transformative initiative is to develop finance programs to provide financing to farmer organisations including on lending to smallholders, coffee businesses and investors. Smallholder farmers need finance for access to inputs and irrigation. In addition, co-ops need finance so that they can pay farmers immediately otherwise, need for “quick cash” may force farmers to sell at a lower price to middlemen. UCDA and UDBL have partnered together in a bid to implement these two initiatives.
Ms. Patricia Ojangole, Managing Director of UDBL, said: “I welcome this important initiative which formalizes and strengthens the existing relationship between UCDA and UDBL. I look forward to continuing to build on our constructive co-operation in the interest of enhancing overall economic development.”
“This partnership with UDBL will go a long way in enabling the coffee sub-sector to achieve the target of producing 20 million bags in the stipulated timeframe,” said the Managing Director of UCDA, Dr. Emmanuel Iyamulemye.
The MoU formalizes and strengthens the existing relationship between UCDA and UDBL at the strategic and operational levels. It also focuses on the general principles for the cooperation of the two parties, the interaction between UCDA standards and the UDBL framework, the mechanism for mobilization of funds for lending and capacity building as well as sharing information regarding their partners in order to avoid duplication of roles.
UCDA is a statutory organization established with a mandate to promote and oversee the development of the entire coffee industry by supporting research, promoting production, controlling the quality and improving the marketing of coffee and other matters in order to optimize foreign exchange earnings for the country and payments to the farmers.
The mission of UDBL, in delivering its National Development Plan (NDP II), is to accelerate socio-economic development through sustainable financial interventions in key growth sectors including primary agriculture and agro-processing, infrastructure development and industrialization at attractive terms.
UCDA and UDBL have a shared objective of serving the public interest. This MoU will enable the two entities to achieve common goals that will define and establish arrangements to mobilize, sensitize, train, organize, support, advocate for dealers and other actors at all stages of the coffee value chain.