Parliament of Uganda has passed the National Coffee (Amendment) Bill, 2024 integrating the Uganda Coffee Development Authority (UCDA) into the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).
This move is part of the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) policy aimed at streamlining public spending and reducing redundant administrative structures.
Despite fierce opposition and extensive debates in recent months, the Bill was approved during the plenary sitting on Wednesday, 06 November 2024.
The passage of the Bill was marked by delays and objections from some Opposition legislators, with members of the National Unity Platform (NUP) staging a walkout in protest earlier before the item even came on the Floor.
During the consideration of the Bill, Hon. Nandala-Mafabi (FDC, Budadiri County West) argued that dissolving UCDA would disrupt a sector critical to Uganda’s economy proposing a three-year delay to ensure a smooth transition.
“I want to make an amendment that the commencement of this Act shall be after three years. The justification is to give it time for the process of dissolution,” Nandala Mafabi stated.
Hon. Moses Okot (FDC, Kioga County) also expressed caution suggesting a grace period to allow the ministry to be fully prepared to manage coffee sector responsibilities effectively.
“The coffee sector should be dealt with a lot of caution. I am associating myself with the decision that if this House is to decide to rationalise, coffee should be given a grace period to grow at least two or three years until the ministry is up to date to move on,” he said.
However, this proposal was rejected.
The Attorney General, Hon. Kiryowa Kiwanuka defended the integration emphasising that merging UCDA with MAAIF would improve coordination, reduce duplication and enhance efficiency.
He insisted that, once the Bill is gazetted, the transfer of UCDA’s responsibilities should proceed immediately, aligning with the Cabinet’s RAPEX policy approved in 2021.
The National Coffee (Amendment) Bill, 2024, was first read on 24 September 2024 and subsequently, referred to the Committee on Agriculture, Animal Industry and Fisheries for scrutiny.
The Minister of State for Animal Industry, Hon. Bright Rwamirama argued during the Second Reading in October that restructuring UCDA as a department within MAAIF would streamline operations, cut administrative costs and eliminate, ‘bloated structures and functional ambiguities’.
Hon. Linda Auma, Chairperson of the Agriculture Committee supported the merger, acknowledging the challenges but deeming the transition necessary for the coffee sector’s future.
Her committee report aligned with the government’s merger goal but recommended a three-year transitional period to prevent disruptions in the coffee value chain.
In a minority report, Hon. Abed Bwanika (NUP, Kimaanya-Kabonera Division) cautioned against rapid implementation, proposing a five-year grace period to allow MAAIF to establish the necessary systems.
He argued that a rushed merger could jeopardise Uganda’s coffee export accreditation, essential for international competitiveness and cited failures in neighbouring Kenya and Ethiopia as cautionary examples.
Parliament had initially passed the bill, but it was returned by President Yoweri Museveni who raised concerns from coffee-growing regions like Bugisu and Buganda, whose MPs opposed the integration.
Speaker Anita Among referred the bill back to the Agriculture Committee for further consultations with the MPs encouraging lawmakers to balance government efficiency with farmers’ livelihoods, many of whom rely on UCDA’s support.
Following these consultations, the Cabinet initially endorsed a three-year transition for the merger but later backtracked after a caucus meeting involving key lawmakers.
The Minister of Agriculture Hon. Frank Tumwebaze reassured Parliament that existing permits, licenses and certifications issued by UCDA would remain valid under the new structure, ensuring continuity for coffee producers and exporters.
Addressing staff concerns, Tumwebaze said that UCDA employees might be absorbed into the public service.
During his remarks after the passing of the bill, he emphasized MAAIF’s commitment to enhancing the coffee value chain, assuring MPs that the ministry would maintain UCDA’s work in producing high-quality coffee varieties.
“With your support, we shall ensure that our laboratories remain accredited and our research continues to raise Uganda’s coffee profile globally,” he added.
In a symbolic show of consensus in October, Speaker Among subjected the Bill to a Division Lobby (headcount vote), where 159 MPs supported the bill, while 77 opposed it.
The UCDA established in 1991 under the Uganda Coffee Development Authority Act regulated Uganda’s coffee value chain, supported research and maximised earnings for stakeholders.
Coffee, a major export for Uganda, generated substantial national revenue, and UCDA’s role was central to this success.
