Uganda Mirror
  • Big Story
  • News
  • Crime
  • Gossip
  • Politics
  • Business
  • Sports
  • Love & Relationships
  • World
No Result
View All Result
SUBSCRIBE
Uganda Mirror
  • Big Story
  • News
  • Crime
  • Gossip
  • Politics
  • Business
  • Sports
  • Love & Relationships
  • World
No Result
View All Result
Uganda Mirror
No Result
View All Result
Home News

Legislators Call For Termination Of Coffee Agreement

admin by admin
2022/05/19
in News
Reading Time: 5 mins read
0
Legislators Call For Termination Of Coffee Agreement
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

Parliament unanimously called for the termination of the agreement between Uganda Vinci Coffee Company Limited (UVCCL) and the Government, which sought to grant the company monopoly over the coffee sector.

You might also like

NARO, Chinese University Partner on Livestock Research 

Former Spy Chief James Birungi Denied Bail, Remanded

Former CMI Boss Maj Gen James Birungi Charged With Treachery, Remanded

The report of the Committee on Trade, Tourism and Industry on the alleged unfair terms of the Memorandum of Understanding (MoU) between government and UVCCL further directed government to report back to Parliament within six months of adoption of the report.

Presented by the Committee Chairperson, Hon. Mwine Mpaka during plenary on 18 May 2022, the report revealed that the agreement was illegal as it contravened the Constitution and other tax laws.

“Article 8(a) of the Constitution was infringed upon by the agreement when the execution of the agreement was concluded without the input of coffee farmers who are the owners of coffee beans which are being granted to UVCCL by the agreement,” read the report in part. 

The committee further observed that the structural adjustments that government undertook between 1981 and 1990 led to the liberalisation of Uganda’s coffee sector and yet the agreement introduces monopoly into the coffee industry which is against the principle of liberalization. 

“The committee observes that the agreement creates monopoly in favour of UVCCL to the purchase of superior quality coffee beans from Uganda by restricting government from registering any contracts or acknowledging any arrangement for the export of coffee beans,” Mwine Mpaka said.

The committee discovered that UVCCL failed to commence the construction of the US$440 million coffee factory when it was allocated 25 acres of land in Namanvanve Industrial Park.

“The committee was informed that whereas government had spent colossal amounts of money to grade, fence, backfill the land allocated to UVCCL at a tune of Shs7 billion and relocated the power lines near the proposed facility site, UVCCL had not commenced, nor undertaken any activity as envisaged in the agreement,” Mwine Mpaka read.

It was also recommended that government should consider extending appropriate incentives to the already existing 47 local companies that are doing value addition as well as fast-track the capitalization of Uganda Development Corporation to invest in soluble coffee plant.

“The already existing 47 local processors are in the business of adding value including roasted coffee beans, roasted and ground coffee as proposed by the Vinci Coffee Company. This is being done without similar incentives as those proposed in the UVCCL agreement,” the report read.

The MPs recommended that officials who committed government to such illegalities should be penalized as a deterrent measure to avert similar occurrences.

According to the committee’s findings, the agreement signed on 10 February 2022 revealed that whereas Government represented by the Minister of Finance and Secretary to the Treasury, the agreement was not signed by UVCCL.

“The representative from UVCCL, Ms. Enrica Pinetti signed as a witness and no one signed on behalf of UVCCL. The committee notes that under the article and MoU of UVCCL, it is only a director, secretary or person appointed by the board who has the right to authenticate a document affecting the company,” said Mwine Mpaka.

Mwine Mpaka said that the agreement can be challenged as not binding on UVCCL.

Mwine Mpaka also refuted allegations that the committee’s recommendations were influenced by President Yoweri Museveni.

“Some findings leaked in the media and the President invited the committee. We sought guidance from the Speaker who gave us a go ahead to meet the President,” said Mwine Mpaaka.

He said that President Museveni agreed with most of the issues raised but emphasized that the biggest problem has been on value addition.

“He recommended that three months should be given to cater for revision of the agreement as opposed to termination, which may have far-reaching implications,” Mwine Mpaka added.

Hon. Abed Bwanika (NUP, Kimaanya-Kabonera Division) who was the chief petitioner against the agreement contended that government should have consulted stakeholders in the coffee sector before signing the agreement.

“How can government give an individual company to determine the price of coffee and export it against the will of Ugandans. Coffee is a heritage for the people of Uganda. It is God given, a strategic commodity and at the centre of the country even before independence,” Bwanika said.

Budadiri West County MP, Hon. Nandala Mafabi pointed out that coffee is the leading foreign exchange earner and giving monopoly to a foreign company means sending all the forex benefits to that country.

“Such agreements are very dangerous. If you were given a license in 2014 and up to now you have not constructed a coffee factory, then you do not know what coffee is. Tomorrow, we shall deliver 600 packets of roasted coffee to confirm that if you empower locals, they have capacity,” Nandala Mafabi said.

The Leader of the Opposition, Hon. Mathias Mpuuga recommended that a caveat should be put on the land that was allocated to UVCCL to stop further activity on it, ‘since the nature of the agreement did not stop the company from carrying out any activity on the land, even after its termination’.

“Any attempt by the company to try and litigate, those are other matters; we have to on our part protect the Ugandans,” Mpuuga said.

He also applauded the MPs for supporting the report in solidarity, saying that whereas it started in the Shadow Cabinet, the whole House took interest in the matter.  

“We must all legislate for prosperity. I support that the report is adopted with amendments. The committee observed that the agreement was potentially not signed. Does that agreement exist in form and function? Has the law changed? We need the Attorney General to clear us on that,” Mpuuga said.

The Attorney General, Hon. Kiryowa Kiwanuka said that government will look into the recommendations and report back.

“The law has not changed. If the agreement is null and void, it is null and void. We shall look into the recommendations and we shall be happy to report back,” said Kiryowa Kiwanuka.

On 12 April 2022, Hon Abed Bwanika raised a matter of national importance pertaining to the agreement between government and UVCCL.

He was concerned that the agreement would eliminate the people of Uganda that are involved in coffee production and would give monopoly of purchase and export of coffee from Uganda to UVCCL.

Parliamentary News

Share30Tweet19
Previous Post

Karamoja Leaders Accuse Security Forces of Starving Suspects

Next Post

Parliament Approves UGX 618bn Supplementary Budget

Recommended For You

NARO, Chinese University Partner on Livestock Research 

by Simon Peter Kato
July 22, 2026
0
NARO, Chinese University Partner on Livestock Research 

The National Agricultural Research Organisation (NARO) has partnered with Southwest Minzu University (SMU) of China in a landmark collaboration that is set to strengthen livestock disease research, enhance...

Read moreDetails

Former Spy Chief James Birungi Denied Bail, Remanded

by admin
July 21, 2026
0
Former Spy Chief James Birungi Denied Bail, Remanded

Former Chieftaincy of Military Intelligence (CMI) boss, Maj Gen James Birungi, has been remanded to Makindye Military Barracks after the General Court Martial denied his application for bail,...

Read moreDetails

Former CMI Boss Maj Gen James Birungi Charged With Treachery, Remanded

by Simon Peter Kato
July 6, 2026
0
General Muhoozi Appoints New Chief of Defence Intelligence and Security

The General Court Martial has remanded former Chieftaincy of Military Intelligence (CMI) director Maj Gen James Birungi on charges of treachery and offences relating to security, nearly a...

Read moreDetails

Works Minister Gives Contractor One Week Ultimatum To Finish Northern Bypass Repairs

by admin
July 6, 2026
0
Works Minister Gives Contractor One Week Ultimatum To Finish Northern Bypass Repairs

The Minister of Works and Transport, Fred Byamukama, has issued a firm ultimatum to the contractor undertaking maintenance works on Kampala's Northern Bypass, demanding that the project be...

Read moreDetails

NARO Beats Government Agencies To Win Top Honour At Jinja Agricultural Show

by admin
July 6, 2026
0
NARO Beats Government Agencies To Win Top Honour At Jinja Agricultural Show

The National Agricultural Research Organisation (NARO) has emerged as the best-performing government institution at the 32nd National Agricultural Show in Jinja, with judges crediting the agency for translating...

Read moreDetails
Next Post
Disband Uganda Land Commission — MPs

Parliament Approves UGX 618bn Supplementary Budget

Related News

Former Spy Chief James Birungi Denied Bail, Remanded

Former Spy Chief James Birungi Denied Bail, Remanded

16 hours ago
Absa Bank Suffers Major Court Defeat As Judges Reject Shs65 Million Demand

Absa Bank Ordered To Compensate Sacked IT Engineer Over Unfair Hearing

16 hours ago
Inaugural Dettol Hygiene Quest Festival sees Burugo Primary School Crowned National Champion

Inaugural Dettol Hygiene Quest Festival sees Burugo Primary School Crowned National Champion

4 days ago
Bebe Cool Lands AFRIMMA Timeless Impact Nomination, Flies Uganda’s Flag Among Africa’s Music Greats

Bebe Cool Lands AFRIMMA Timeless Impact Nomination, Flies Uganda’s Flag Among Africa’s Music Greats

6 days ago
General Muhoozi Kainerugaba Orders Nationwide Naming of Streets And Roads By August 30

General Muhoozi Kainerugaba Orders Nationwide Naming of Streets And Roads By August 30

1 week ago
Gen David Muhoozi Bids Farewell To Outgoing Total Uganda Managing Director

Court Throws Out Former TotalEnergies Executive’s Bid to Overturn Dismissal Over Sexual Harassment Claims

1 week ago

Popular Stories

  • The Unwritten Deal is Dead: Gen Z is Reshaping Uganda’s Workplace

    The Test Uganda Hasn’t Sat Yet

    1001 shares
    Share 400 Tweet 250
  • Works Minister Gives Contractor One Week Ultimatum To Finish Northern Bypass Repairs

    922 shares
    Share 369 Tweet 231
  • Former Speaker Anita Among To Be Arraigned Before Anti-Corruption Court

    761 shares
    Share 304 Tweet 190
  • Finance Ministry Accounting Officer Dr. Sengonzi Honoured As Uganda’s Public Finance Management Champion

    757 shares
    Share 303 Tweet 189
  • Government Unveils Japanese Climate-Smart Technology To Help Ugandan Farmers Beat Drought

    711 shares
    Share 284 Tweet 178
  • High Court to Hear Habeas Corpus Case As Citizens Petition Museveni Over Sanyu Edisah’s Alleged Detention

    674 shares
    Share 270 Tweet 169
  • Three Police Officers Arrested After Abbarci Industries Ltd Worker Shot Dead During UCDA Inspection In Gomba

    605 shares
    Share 242 Tweet 151
Facebook Twitter Instagram Youtube
Uganda Mirror

Uganda's leading source News in categories of Politics Gossip Crime Sports Business Technology & Education

© 2025 Ug Mirror - A Product of Mirror Digital Limited .

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “ACCEPT ALL”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsREJECT ALLACCEPT ALL
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Big Story
  • News
  • Crime
  • Gossip
  • Politics
  • Business
  • Sports
  • Love & Relationships
  • World

© 2025 Ug Mirror - A Product of Mirror Digital Limited .

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Not enough quota to unlock this post
Unlock left : 0
Are you sure want to cancel subscription?