By Ben Ssebuguzi
Africans are often synonymous with resisting those who seem to be excelling beyond the ordinary. This poor mindset is evident in how Nelson Tugume, the leader of the Uganda Coffee Consortium, has been met with criticism while trying to innovate and create change in Uganda’s coffee sector.
The most critical element of innovation is summoning the confidence to start. No matter how small the step, it marks progress toward breaking barriers and achieving goals. Personally, I witnessed Nelson’s confidence when I purchased his business magazine, Inspire Africa, which I have diligently kept up-to-date.
Nelson began nurturing the idea of adding value to coffee after discovering, to his surprise, that a half-kilo of coffee in Washington, D.C., sells for USD 79 compared to its local price of just USD 1. This disparity, representing a mere 1.2 per cent of the value, is appalling.
The global coffee market currently stands at USD 97.7 billion in 2024 and is projected to reach USD 102 billion by 2025. However, Uganda earned just USD 1.144 billion, which represents only 1.17 per cent of the global coffee value. These disturbing figures highlight the need for a brave African like Nelson Tugume, who is unafraid of negative public criticism, to take bold action and confront the status quo.
Nelson’s idea of adding value and utilizing the 3 per cent of coffee retained locally, while 97 per cent is exported, is highly commendable.
Ethiopia, one of the leading coffee producers, surpasses Uganda in both quality and quantity because 50 per cent of its coffee is consumed domestically. This helps them cushion against global market shocks and risks. Uganda, on the other hand, suffers from overdependence on exports, with 97 per cent of its coffee sold in raw form. What happens if Brazil produces a surplus? Uganda would be severely impacted. This is precisely what Nelson aims to address through his state-of-the-art factory in Ntungamo.
Nelson’s idea of processing coffee into finished products, such as coffee-based cosmetic products, is an initiative that deserves government support. Assistance in market analysis and branding would help him remain competitive. This approach not only enables Africa to create sustainable jobs within the coffee value chain but also positions the continent as a significant player in the global coffee market.
In conclusion, it was a commendable gesture for opposition legislators, led by the Leader of the Opposition, Hon. Joel Ssenyonyi, to visit Nelson’s factory in Ntungamo and witness firsthand the value being created. Long live General Yoweri Kaguta Museveni, long live Hajjat Uzeiye Namyalo, SPA and Manager ONC!
The writer is the Head of Research, Office of the National Chairman.
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