President Museveni has pledged government support towards the establishment of the Nonda Coffee Park in Nakaseke District, a major agro-industrial project expected to transform Uganda’s coffee sector through value addition, job creation and expanded export opportunities.
The President made the commitment during a meeting at State House, Entebbe, with a delegation from Nonda Coffee Park led by Chief Executive Officer Tonny Miiro Kibuuka.
The delegation briefed the President on the progress of the project and sought further government support ahead of the planned groundbreaking ceremony scheduled for October this year.
The proposed coffee park, located on a 100-acre site in Butalangu Town Council, Nakaseke District, is projected to become the largest single coffee processing facility in East and Central Africa.
Once completed, the facility will have the capacity to process 42,000 metric tonnes of coffee annually, sourcing raw materials from Uganda’s central region and other coffee-growing areas across the country.
According to Miiro, the project forms part of the Great Uganda-Saudi Coffee Corridor under the Value-at-Source Coffee Project, a private sector-led industrialisation initiative aimed at increasing domestic processing of Uganda’s leading export commodity.
“The President has committed his support to this project, particularly in mobilising coffee farming households to prepare for the increased demand for coffee that will be required by the factory,” Miiro said.
He explained that the initiative seeks to move away from the traditional model where Uganda exports mainly unprocessed coffee beans, enabling the country to retain more value from the coffee value chain.
The Nonda Coffee Park represents an estimated investment of $200 million( about shs740 billion), making it one of Uganda’s largest agro-processing projects.
About $160 million(Shs592 billion) will be invested directly into the development of the coffee processing facility and related infrastructure, while the government is expected to contribute $44 million(Shs163 billion.). The remaining financing will come from private investors from Saudi Arabia.
Miiro said the project already has an established export market, with processed coffee from the facility expected to be supplied to Saudi Arabia under an existing commercial arrangement.
“This project is already mapped to the off-take market in the Kingdom of Saudi Arabia. There is a ready market waiting for the coffee because we are the first Ugandan company to own coffee shops in the Middle East,” he said.
He added that the company currently operates two Ugandan-branded coffee shops in Saudi Arabia.
The facility is projected to generate annual revenues exceeding $800 million, boosting Uganda’s foreign exchange earnings from coffee exports.
Preparatory works at the site have already started, with construction expected to be completed within 24 months.
Miiro said the upcoming groundbreaking ceremony will mark a major milestone in Uganda’s efforts to promote agro-processing and increase earnings from agricultural exports.
“Our purpose in meeting the President was to thank him for the support he has committed to this project and also to inform him about the proposed groundbreaking ceremony later this year,” he said.
The meeting was attended by senior government officials, including Attorney General Sam Mayanja, Minister of Finance, Planning and Economic Development Henry Musasizi, Minister of Science, Technology and Innovation Jonard Asiimwe, Coordinator of the Islamic Development Funds Habib Migadde, and other stakeholders involved in the project.
