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Breaking: Government Scraps 3-Year Transitional Period in Coffee Bill

In a turn of events, the cabinet has scrapped its earlier proposed three-year transitional period in the National Coffee (Amendment) Bill, 2024.

The controversial Bill, now awaiting Second Reading in Parliament, seeks to mainstream the Uganda Coffee Development Authority (UCDA) into the Ministry of Agriculture, Animal Industry, and Fisheries.

It is among the several other Bills for the rationalisation of agencies and reducing public expenditure.

In a written communication to the NRM MPs, government Chief Whip, Hamson Obua, said the new development is now the official position of government, and all his party’s legislators should support it.

“The Cabinet of The Republic of Uganda chaired by His Excellency The President has reconsidered and resolved that the THE NATIONAL COFFEE(AMENDMENT) BILL 2024 be supported and passed into Law WITHOUT the Three(3) year transitional period,” writes Obua.

“The above is therefore the new position of the NRM Government, and all Members are hereby urged to support it,” he adds.

The bill has since been rejected by Buganda Kingdom, Bunyoro Kingdom, Bugisu, and various members of the public, including leaders on grounds that the merger will affect the successes so far registered in the coffee sector.

It is not clear what could have triggered this change of position, but ut should be remembered that during the NRM Caucus meeting with President Museveni on Friday, the later promised a showdown with those opposed to the Bill.

“We are going to have a showdown, they are liars and criminals playing with fire. They will not like the counterattack,” President Museveni said, as quoted by the State House press unit.

The Bill was read for the first time on September 24, 2024, and subsequently referred to the Committee on Agriculture, Animal Industry and Fisheries for scrutiny in accordance with Rule 129 (1) of the Rules of Procedure.

The Minister of State for Agriculture, Animal Industry and Fisheries (Animal Industry), Hon. Bright Rwamirama, moved a motion for the Bill to be considered for its second reading during a plenary session chaired by Speaker Anita Among on Thursday, October 24, 2024

He justified his motion by emphasising that mainstreaming UCDA would address wasteful administration and expenditure, ensuring efficient and effective services delivery.

“The objective of the Bill is to restructure UCDA and reorganise it as a department of the government within the Ministry of Agriculture, aimed at eliminating bloated structures and functional ambiguities in government agencies,” he said.

A report presented by Hon. Linda Auma, (Indep., Lira District Woman Representative), also Chairperson of the Committee on Agriculture, Animal Industry, and Fisheries, agreed with government’s proposed merger, with the rider that a three-year transitional period is provided.

Hon. Abed Bwanika (NUP, Kimaanya-Kabonera Division), presented a minority report opposing the abolition of UCDA.

He argued for a five-year transitional period to allow the agriculture ministry to establish systems and structures necessary for Uganda to retain its coffee export accreditation, currently held by UCDA.

“We don’t want to replicate the failures of our neighbours in Kenya and Ethiopia, who faced severe consequences after rationalising their boards,” he cautioned.

MP Agnes Kirabo (NRM, Youth Central), insisted that UCDA should remain independent due to its significant revenue contributions.

Similarly, the Mbale District Woman MP Hon. Miriam Mukhaye added that UCDA has fostered an enabling environment for farmers in her district by providing training and support for improved coffee production.Other MPs like Gorreth Namugga, (NUP, Mawogola County South) criticised the agriculture ministry, stating it had failed to manage several projects effectively.

The Leader of the Opposition in Parliament, Hon. Joel Ssenyonyi, emphasised that UCDA should be empowered to expand its services to emerging coffee-growing regions, such as West Nile and Northern Uganda.

In the interest of equity, the Speaker subjected the Bill to a Division Lobby (headcount vote outside the Chamber) as per Rule 101 of the Rules of Procedure.

When the vote was finally tallied, 77 MPs voted against the motion for Second Reading of the Bill, while 159 MPs voted in support.

UCDA was established in 1991 under the Uganda Coffee Development Authority Act, Cap. 325, which was repealed and replaced by the National Coffee Act No. 17 of 2021.

The authority’s mandate includes regulating activities within the coffee value chain, promoting coffee quality, supporting research and development, and optimising earnings for stakeholders in the sector.

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Breaking: Government Scraps 3-Year Transitional Period in Coffee Bill

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