Process coffee for specialty markets

28-07-2009

Uganda ranks third in Africa and ninth in the world as a producer of coffee. Coffee accounts for a large share of the country’s export earnings. Opportunities exist in adding value to the coffee which is currently exported raw.

Uganda produces about 3.5 million bags per year, of which 90% is robusta coffee and 10% Arabica. Major export markets include Europe, United Kingdom, and United States. The country’s yields per hectare for robusta are approximately double those of its African competitors. All coffee is organic and some coffee producing areas have been certified as organic by Swiss company Kray Kontrol.

Investment opportunities

Production for specialty markets Production of washed robusta coffee. This presents investors with potential for higher earnings than dry-processed coffee. Coffee roasting: Though tied to niche markets, coffee roasting can be adopted to larger markets especially with the growing demand of Ugandan coffee in China.

Incentives

Along with an excellent macro-economic record, Uganda provides a competitive incentive regime for the private sector including;

– Import duty exemptions for plant and machinery

– Duty draw-back facility for exporters

– A fully liberalized foreign exchange regime

– First arrival privileges in the form of duty exemptions on various items to all investors and expatriates

– Security of investments guaranteed under the Constitution and memberships to relevant International treaties.