Farmers should not lose heart over the bad government coffee deal with Vinci

By Barnard Bakalu

24^th April 2022

Farmers in Katuugo Town Council in Nakasongola district have been asked to ignore the controversies around coffee agreements government is making with some investors but rather increase production and quality.

Last week, the Speaker of Parliament, Anita Among, instructed the Trade committee to probe the controversial coffee deal the  government signed  with Uganda Vinci Coffee Company Limited- UVCCL, a privately owned firm, to process and export Uganda’s coffee with exclusive rights to sell and market Ugandan coffee on the international market.

Subsequently, the Parliamentary Committee on Trade, Tourism and Industry summoned individuals and entities behind the endorsement of the controversial coffee deal to explain their role in the agreement who are expected next week.

In his Easter message at Lubaga Cathedral, the Katikkiro of Buganda Charles Peter Mayiga condemned the central government’s decision to sign a coffee agreement with Uganda Vinci Coffee Company Limited without consulting the key stakeholders but encouraged people not to lose hope in growing coffee.

Now, while addressing Katuugo Town Councilors during a council session, the Katuugo Town Council LC 3 chairman Fred Lubinda, also said the move is intended to discourage farmers from coffee production yet it’s the only crop that can help peasants who are languishing in poverty.

He has urged the councilors to rally the people they represent to engage in coffee farming.

Already a section of lawyers has described the agreement signed between the government and the Uganda Vinci Coffee Company Limited as a bad deal that should be challenged in Courts of law.

Lawyer Shamil Letia Atabua argues that the Constitution grants the Executive powers to acquire, dispose and govern territory but it doesn’t give them the power to switch on and off the constitution at will like the Finance Minister Matia Kasaijja did by granted tax holidays and other big incentives to lady Enrica Pinetti without the mandate of parliament and URA.

The agreement signed on February 10, 2022, by Ramathan Ggoobi the Secretary to Treasury on behalf of the government and Enrica Pinetti, an Italian investor and the Board Chairperson of Uganda Vinci Coffee Company Limited on behalf of the company allows the company to get free land in the Industrial and Business Park at Namanve, exclusive rights to buy all Uganda’s coffee even before the government can look at other players.

The Company is also exempted from paying taxes such as Import duty tax, Stamp duty, value-added tax, National Social Security Fund, Pay As You Earn and will have the right to determine the coffee prices in the country on top of enjoying electricity subsidy among others, concession that will end in 2032, but it is subject to renewal.