95 Time FM News


Bugisu Cooperative Union challenges Government coffee deal with Italian investor

By Melanie Aanyu,

The Bugisu Cooperative Union (BCU) has challenged the agreement signed between the government and the Uganda Vinci Coffee Company Limited and asked parliament to terminate it.

John Musira, the Board Vice Chairperson of the Cooperative Union yesterday (Tuesday) told Parliament’s Trade Committee that the provisions in the agreement will demoralize coffee farmers, something that will affect the country’s economy.

The Bubuulo East MP also noted that coffee farmers had not been consulted by the government prior to the signing of the agreement.

On 10th February 2022, Ramathan Ggoobi, the Secretary to the Treasury signed on behalf of the government a coffee agreement with Enrica Pinetti, an Italian investor and the Board Chairperson of Uganda Vinci Coffee Company Limited.

The company was given free land in the Industrial and Business Park at Namanve measuring 27 acres after it indicated its capability of establishing a coffee processing facility in Kampala.
It will be given exclusive rights to buy a chunk of Uganda’s coffee and its concession will end in 2032, but is subject to renewal among others.
In his statement to the Trade Committee, Musira noted that the agreement is to negatively affect farmers and processers of coffee in the country and several people risk losing livelihood if the agreement is implemented.