Coffee nursery operators in Lwengo face property seizures over unpaid government debt

By | October 23, 2023

Courtesy Photo.

Coffee nursery operators in Lwengo are in dire straits as they grapple with the severe repercussions of unpaid debts.

These operators supplied coffee seedlings to the government through the Uganda Coffee Development Authority in 2018, with the expectation of financial support and prompt payment. However, their optimism has turned to frustration as the government's promises remain unfulfilled, leading to financial ruin and property seizures by banks.

In 2018, these nursery operators saw an opportunity to contribute to the growth of the coffee industry in Lwengo and the nation as a whole. The government's request for coffee seedlings was seen as a chance for business expansion and industry development.

Yet, the government not only failed to make payments as promised but has also ignored the pleas for assistance from these operators.

To meet the government's demand, many operators took out loans to maintain their nursery beds and purchase supplies. Now, years later, they struggle to repay these loans due to the financial strain resulting from the government's non-payment.

Banks have initiated property seizures to recover their debts. Nakintu Scovia, a resident of Kalisizo village in the Lwengo Rural subcounty, is one of the victims, having lost her house and a plot used as collateral.

Nakintu took the risk, hoping that she would repay the loan promptly once the government fulfilled its commitment. However, since 2018, when the government acquired her coffee seedlings, she has not received any payment.

Nakintu, a mother of eight children, once lived in a comfortable house but now resides in an iron-sheet hut. Her children's education has come to a halt, and she shoulders the responsibility of both mother and father due to the losses she has incurred.

The affected coffee nursery operators express their deep disappointment and sense of abandonment by the government. They call upon the government to honour its promises and provide the support initially offered.

The once-promising coffee industry in Lwengo now faces an uncertain future due to this crisis. This situation underscores the challenges encountered by small-scale agricultural businesses and highlights the importance of government support in nurturing the agricultural sector.

The fate of these operators remains uncertain as they hope for government intervention to salvage their businesses and prevent further property losses.

Efforts to obtain a response from the Uganda Coffee Development Authority spokesperson, Laura Walusimbi, were unfruitful, as she claimed to have no information on the matter. Wasswa Charles, a UCDA chief in Lwengo, reported sending letters but receiving no response.

Bukoto Mid-West Member of Parliament, Isaac Ssejjoba, has appealed to the government and UCDA to expedite payments to these nursery operators. He has pledged to raise the issue in parliament, not only for Lwengo but for the entire nation, where operators face similar challenges.

Lwengo Resident District Commissioner, Hajji Walugembe Ramadhan, urges residents to remain patient, assuring them that the government is committed to fulfilling its financial obligations to the nursery operators.

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