Scandal: Government Losses Billions In Revenue As UCDA MD Lyamulemye Withdraws Uganda From International Coffee Organization

The government of Uganda and coffee farmers are poised to lose big after a surprise decision made by Uganda Coffee Development Authority (UCDA) Managing Director.

The Capital Times have learnt that disgruntled Dr Emmanuel Lyamulemye Niyibira solely withdrew Uganda from international coffee organization without even authorization from the Government of Uganda.

According to Gov’t corridors, his decision was above the role of a managing director and it has implications on coffee export.

Interestingly Uganda exports coffee using ICO certificates that are issued to member countries. “If we withdraw, it means we will have difficulty in exporting coffee. This is a serious issue,” a coffee farmer who preferred anonymity revealed.

“The Minister of Agriculture wasn’t consulted. The UCDA top management, led by the MD, acted unilaterally and this is something Parliament, donors and other stakeholders aren’t going to accept,” says a source.

Adding that absence of a substantive governing board at UCDA to vet many of the CEO’s decisions has only made worse an already bad situation.

In a new twist, Farmer Associations and Private Sector leaders in the Ugandan coffee arena are equally appalled by this decision as communicated by the UCDA MD whose belligerent approach some are now blaming for such anomalous decision making at the Jinja Road-based agency.

The International Coffee Organization (ICO) is an intergovernmental body, set up in 1963
under the auspices of the United Nations, responsible for implementing the International
Coffee Agreement (2007) to strengthen the global coffee sector and promote its sustainable
development.

The ICO provides a unique forum for the global coffee community, working actively with its
Member governments, international organizations, the private sector and all other stakeholders to address the challenges and opportunities facing the global coffee community, including the development and implementation of strategies to enhance the livelihood and the capacity of local rural communities and smallholder farmers to benefit from coffee production.

The ICO Five-Year Action Plan 2017-2021 identified as strategic goals:

1. Delivering world – class data, analysis and information to the industry and policy-makers;

II. Using the Organization’s convening power to provide a forum for dialogue between and within the public and private sectors; and

III. Facilitating coffee sector development projects and promotion programmes through public-private partnerships.

ICO Member Governments represent 98% of the world’s coffee production and two-thirds of world consumption, providing a unique forum for the global coffee community.

According to the National Coffee Act Section 40(3), UCDA is required to profile,grade and certify coffee in line with the international standards issued by ICO and other international standard bodies. Therefore for UCDA to pull out ICO, which is a legal requirement is not only scandalous but also Uganda Coffee will lose market!

Coffee is exported using ICO certificates that are issued by members countries! It therefore means that our coffee export will be affect and we won’t be issuing ICO certificates since we are mo longer members.

This news has sent shock waves among the farmers and economist for the MD to act solely without consulting the Board and the ministry of Agriculture.

Coffee is one of Uganda’s largest export earner and this is likely to affect her very much.

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