Kampala, Uganda: Uganda is set to tap into a new multi-billion-shilling coffee export opportunity in South Africa, with projections indicating earnings could surpass UGX 6 billion annually as the coffee market expands across Southern Africa.
The initiative is being championed by Ugandans in the diaspora under the Confederation of Ugandans living in Southern Africa (COUSA), who have identified South Africa as a strategic entry point for Uganda’s coffee, both in green and roasted form. South Africa is the second-largest consumer and importer of coffee in Africa, making it a prime destination for Uganda’s premium Robusta and Arabica beans.
The President of COUSA, Moses Kibombo Ssentongo, revealed that as an association, they have already submitted a South African Market Strategy to the Ugandan government, proposing exports of more than 100 tonnes of coffee worth UGX 1.8 billion to South Africa alone, a potential that could triple once extended to neighboring markets like Lesotho, Swaziland, Zimbabwe, Mozambique, Namibia, and Malawi.
“The demand is already here. Buyers and consumers in Southern Africa are eager for Uganda’s coffee, especially our washed Robusta. With proper support, we can scale to hundreds of tonnes quarterly,” Kibombo said.
He, however, noted that to fully exploit the market, government must address non-tariff trade barriers, especially around roasted coffee exports. “South Africa currently prefers green beans. We need harmonization to allow value-added Ugandan coffee, not just raw exports,” he added.
Billions of Shillings in Export Value Projected
Julius Muwonge, Operations Director of Ladha Ya Africa, a South African firm partnering with Uganda’s Velvet Café Ltd, says selling processed coffee in Southern Africa could contribute significantly to Uganda’s national export target of $6 billion in additional earnings.
“By boosting sales of finished coffee products, we secure livelihoods for farmers in Uganda and create new jobs across the value chain. The trade hub we are setting up will also allow Uganda to control its own narrative on quality and branding,” Muwonge explained.
The planned coffee trade hub will include a warehouse, showroom, and coffee shop serving Ugandan-origin products. The project requires an estimated $226,000 (UGX 813 million), which organizers hope will be co-financed by the government under a shared partnership.
Farmers and Communities already benefiting
The initiative has already begun linking farmers from coffee-growing regions to new buyers.
In Mbale District, farmer Joachim Wambede says the project has already transformed his household income ever since he started supplying the Southern African partner. “Before, selling coffee was a struggle. Now, with Ladha Ya Afrika offering a ready market, my income has improved, and so has my family’s wellbeing,” he said.
In Bukomansimbi, Henry Muwonge praised the move towards value addition, noting that processed exports had made coffee farming more profitable. Local leaders and youth groups in central and eastern Uganda have also welcomed the project, seeing it as a game-changer for rural economies.
Coffee Market Outlook
Industry experts say South Africa’s coffee sector is expected to grow rapidly, particularly in the instant coffee segment, which is projected to expand by 8.24% between 2024 and 2028. With Uganda already Africa’s leading coffee exporter, the new partnership is being hailed as a turning point in diversifying markets beyond Europe and Asia.
If fully actualized, the South African trade hub could not only increase Uganda’s export revenues but also boost farmer incomes, create thousands of jobs, and strengthen Uganda’s position as a continental leader in premium coffee production.
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