By Mukembo Wilfred
The Katikiro of Buganda (prime minister) Charles Peter Mayiga has broken silence about the controversial coffee processing agreement with Uganda Vinci Coffee Company Limited, a private company to market and export Uganda’s coffee.
Speaking during the Easter Sunday mass at Lubaga Cathedral, Katikiro Mayiga said that the agreement is bad since it almost gives monopoly to one company and no single farmer and other stakeholder was consulted before its signing.
“Then came Vinci Coffee Company to buy and sell Ugandan coffee almost as a monopoly. Those who signed the agreement never consulted anyone but claim it is good. We all understand English and know how to interpret agreements, be it laws. Farmers were never consulted; neither dealers nor exporters were consulted. Buganda has a big stake in the coffee industry but why were we not consulted? How can the Ministry of Finance officials claim to know more about coffee than those of us who are on ground,” Mayiga questioned.
The agreement which ends in 2032 , subject to renewal, among others gave the Italian company, Uganda Vinci Coffee Company Limited , exclusive rights to buy all of Uganda’s coffee whereas it was also exempted from paying taxes including income tax, pay as you earn, Excise Duty, Stamp Duty, VAT, Import Duty and corporate income tax.
On the other side, the Ugandan government undertook to inject money into the company.
Mayiga says the agreement intends to force Ugandans out of the coffee business especially in Buganda where Coffee production i has gone up by 35% whereas the country’s coffee exports too have gone up and to this, Buganda accounts for more than 30%.
“The controversy in the coffee business challenges us. When we challenged the coffee bill, we were ridiculed. Then all of a sudden, Uganda Coffee Development Authority without consulting anyone pulled out of the International Coffee Organization (ICO) . When we questioned the move, we were again ridiculed. It appears some people want to frustrate Ugandans out coffee business and selling it abroad. Why don’t they first consult us,”Mayiga said.
