The Uganda Coffee Development Authority (UCDA) is seeking Shs35 billion in funding for the installation of a coffee traceability system.
The chairperson of Parliament's Agriculture Committee, Janet Okori-Moe, explained that UCDA aims to establish a national traceability system to ensure compliance with European Union regulations that prohibit the production of agricultural products, such as coffee, from deforested areas.
She said the traceability system will register coffee value chain actors including farmers, nursery operators, processors, roasters, and exporters.
" It is a crucial requirement for coffee exportation to the European Union. UCDA requires Shs35 billion to establish this system, but no funds were allocated in the 2024/2025 budget,"she stated.
However, Kateshumbwa, the Sheema Municipality MP, responded to the request by asking, "When you claim that UCDA requires Shs35 billion to establish a traceability system, is this figure justified?
He questioned the viability of implementing a system with a budget of Shs35 billion, and urged for a comprehensive evaluation of the proposal along with conducting benchmarking studies.
In addition to the coffee traceability system, the Uganda Coffee Development Authority is also seeking an additional Shs13.952 billion to address other critical issues that lack funding.
This includes Shs1.566 billion for promoting Uganda's coffee in China, Shs1.66 billion for promoting Uganda's coffee in the Middle East and Maghreb, and another Shs1.2 billion for the construction of a coffee hub in Kyambogo.
Kateshumbwa further expressed his reservations regarding the proposal, questioning the justification of investing Shs1.2 billion in establishing a coffee hub in Kyambogo solely for the purpose of promoting coffee consumption. He emphasized the need for greater clarity on the financial aspects of the project.
"Allocating Shs1.5 billion for coffee promotion in China appears redundant considering the presence of an already established coffee market in China that we have yet to fully exploit. It is crucial that we thoroughly scrutinize these figures to ensure well-informed decision-making,"he said.