Coffee Farming is the New Gold in Uganda

Since the Ugandan government liberalized Coffee sector, the country has been experiencing a boom in Coffee farming as farm developments at the country’s Mount Elgon in eastern Uganda has become a flourishing ground for thousands of acres of Coffee farms. Standing at almost 2,000 metres above sea level, Mount Elgon is Uganda’s highest peak with the right altitude to produce some of the world’s premium Coffee beans for export. The boom according to observers may be an answer to Uganda’s quest to create employment for its teeming youth population. In the last few years, Uganda has grown to become Africa’s biggest coffee exporting country and eighth-biggest in the world. In the past two decades coffee has contributed around 20-30% of Uganda’s foreign exchange earnings.

Read also: Nestlé Helps African Coffee Farmers Imbibe Sustainable Agriculture

One of the major players in the industry is Kyagalanyi Coffee, one of the largest coffee exporters in Uganda. Founded in 1992 and later became part of the Volcafe group, Kyagalanyi Coffee is the coffee division of ED&F Man, a commodities trader headquartered in London. Among other visible players in Uganda’s Coffee sector is a subsidiary of Sucafina, a Swiss trading firm, and the Singaporean conglomerate, Olam, which is fast becoming one of the biggest agro commodities giant in Africa with tentacles spread across West, Central and East Africa.

Some of these big firms have identified ways of engaging the farmers in a bid to improve yield and production quality. Ugandan exporters get their coffee from an army of smallholder farmers – as many as 1.7m households – who grow coffee trees alongside crops like bananas or beans. Quality control workers pick out unsuitable green, unroasted coffee beans from a conveyor belt at Dormans coffee factory in Nairobi. The sector flourished in the 1990s, after the government stripped the parastatal coffee board of its export monopoly. Liberalisation was promoted by President Yoweri Museveni with strong donor backing. More money flowed to farmers, poverty rates fell sharply, and production soared. Today about 60-80% of coffee export revenues go into the pockets of farmers, more than in most other African countries.

Read also: Iron Deficiency Undermines the Lives of Millions in Africa – Isn’t it time we do more to end it?

However, according to the Coffee Farmers Alliance of Uganda, there is need for sustainable farming as the liberalization that ushered in the new wave of Coffee millionaires also led to the collapse of Coffee cooperatives and farmers were left to fend for themselves. The restructuring of the domestic industry was followed by a slump in international coffee prices and a devastating outbreak of coffee wilt disease. Many farmers gave up on their trees. Exports had peaked at over 4m bags in the mid-nineties, but were barely 2m a decade later. Only in the last few years have they returned to peak levels, with 4.3m bags exported in 2017/18. In 2014 Museveni set an optimistic production target of 20m bags by 2020. The deadline has since been pushed back to 2025, but officials are positive.

Read also: Nila Yasmin of Uganda Wins the 2019 APO Group African Women in Media Award

Experts say that some simple interventions could make the difference. Coffee gains about a third of its weight in the last 2-4 weeks before ripening, so farmers should pick cherries only once they turn red. Another trick is to cut trees back to their stumps, then let them regrow; the farmer sacrifices income in the short-run, but the trees bounce back more fruitful than before. With better techniques and the right support Ugandan farmers could increase yields by 200% for robusta and 150% for arabica varieties, they say.

The problem is creating incentives to do so. Exporters rarely have a direct relationship with farmers. They get their coffee through middlemen, who drive round villages buying up cherries on motorbikes or trucks. Farmers sell their coffee to whoever offers a good price: if one company invests in higher yields, another might reap the rewards.

About 80% of Uganda’s coffee is robusta, which typically ends up in instant coffee blends. There is little price premium for improving quality, and so exporters do not bother. But speciality arabica coffee, which is grown in highland areas, is a favourite of rich-world consumers. That creates the kind of margins which can finance a direct trade relationship with farmers. Kyagalanyi now works directly with 21,000 arabica farmers in three regions of Uganda. One of those is Mount Elgon, an extinct volcano on the Kenyan border, where it operates five washing stations including the one at Gibuzale.

Teams of agronomists fan out across the hills, visiting farmers, checking certification standards and advising on best practices. Small demonstration plots show the benefits of new techniques. At harvest farmers bring their coffee to the washing stations, receiving rapid payment through cash or mobile money. Data from Kyagalanyi suggests the scheme is working. In 2018 half of the households it works with on Mount Elgon cut back trees to the stump, up from just 12% in 2015. Over 40% were using inorganic fertiliser, compared with about 15% in 2014. For washed arabica, yields increased by 72% in eight years with the farmers making about USh2.8m ($764) more each year as a result of price and productivity gains.

Analysts say that Mount Elgon is a good place for a coffee scheme to start. The roads are relatively smooth, the chain from farmer to exporter is quite short, and farmers have a commercial mindset but the challenge is greater in other arabica areas, like the Rwenzori mountains in the west.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

DHL partners with Teach For Uganda to create greater employability among youth

DHL

DHL Express, DHL Global Forwarding and DHL Supply Chain, part of the Deutsche Post DHL Group (DPDHL Group), launched a partnership today with Teach For Uganda, a network partner of Teach For All, to eradicate education inequity, raise a nation of true leaders and promote educational opportunities and employability for young people in Uganda.

This marks DPDHL Group’s 18th partnership with Teach For All under the new strategic framework(1), a focus to nurture employability and life skills of young people from difficult socio-economic backgrounds around the world, and its first partnership in Africa.

James Kassaga Arinaitwe, Founder and CEO of Teach For Uganda, said, “We believe in the potential of all children to thrive and become better leaders in their various communities. The partnership with DHL Uganda will accelerate our momentum and help us improve the lives of the children through excellent and practical education and develop our fellows as effective teachers and leaders in their communities and nation.”

Along with providing financial support, this partnership will also see employees from DHL Express, DHL Global Forwarding, and DHL Supply Chain volunteer to support over 36 Teach For Uganda Fellows who will, in turn, make a positive impact in the lives of at least 15,000 students across Uganda.

“According to Uganda Census data, over half of Uganda’s population comprises youth under the age of 29 and it is estimated that 86% of those are unemployed, underemployed or at the level of becoming employable. (2) While we understand there is much to be done in order to close the gap, we hope that the engagement our volunteers will have with Ugandan youth will help improve these numbers,” said Fatma Abubakar, Country Manager, DHL Express Uganda.

Paul Erongot, Country Manager, DHL Global Forwarding Uganda added, “Globally DHL is committed to improving the communities in which we operate. Having been in Uganda for over 30 years, we want to be able to create a positive impact within the local community. We hope our volunteers’ interactions with these youth will help provide them with an understanding of

what the demands of the real working world are, and the skills they need to tackle these challenges head-on.”

Zachary Mukwaya, General Manager, Country Operations Uganda, DHL Supply Chain continued, “We are looking at giving the youth exposure and access to business leaders as well as skills-based training. Over time as the interactions grow between DHL volunteers and the Teach for Uganda students, we hope to nurture a cohort of youth who are more confident, focused and own the skills needed to move forward in their careers.”

Teach For Uganda recruits exceptional Ugandan graduates from diverse fields of study, who are trained to become teachers, known as Teach for Uganda Fellows, then placed in underserved schools and communities around the country as Teach For Uganda participants. These teacher-leaders would commit two years as teachers and mentors to their students.

In addition to giving their time to Teach for Uganda, DHL volunteers will continue to support SOS Children’s Villages Uganda with whom it has had a partnership since 2013.

Deutsche Post DHL Group’s corporate responsibility program “Living Responsibility” is comprised of three programs focused on environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach). Under the GoTeach program, Deutsche Post DHL Group provides support to Teach For All as well as 18 other network partners in the Asia Pacific, Europe, Latin America, and the Middle East.

 

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/

Ethiopia Is Now $52 billion In Debt, Twice The GDP of Uganda

Ethiopia debt

Ethiopia ’s debt profile is headed for another level. With over $52 billion debt, the country’s public debt is now more than 65% of the country’s Gross Domestic Product (GDP), and twice the GDP of the East African country of Uganda.

Ethiopia debt

“We borrowed a lot of money but we have been unable to repay on the given time… We have borrowed significantly for infrastructure projects which really failed to achieve the desire result,” said Eyob Tekalign, State Minister of Finance of Ethiopia who presented the 11 months performance report to the Parliament.

What This Means

  • Although Ethiopia’s fast economic growth registered for over a decade was attributed to being driven by the public investment mainly relying on loan, the economic growth has not been able to make the country pay back its debt.
  • The Ethiopian government total debt from foreign and local lenders now surpasses $52.3 billion.
  • As a result, Ethiopia is now forced to restructure the debt repayment schedule negotiating with the major leading country — China as well as by avoiding new debts and new public investment projects
READ ALSO: At Last Ethiopia Opens Up Its Telecom Industry, Bidding To Start September
Public debt has grown in Ethiopia over the years

“We have already avoided commercial loans because these loans when they have matured have really created a challenge of accumulated debt,” he said explaining some of the actions undertaken by the ministry as a result of the ongoing reform launched by Prime Minister Abiy a year ago.

“…We have prioritized supply side of economic growth which means working on productive sectors including mining, tourism, manufacturing even agriculture. We are still importing wheat and edible oil which in an economy like Ethiopia is really unacceptable” the Minister said.

The Gross Domestic Product (GDP) in Ethiopia was worth $80.56 billion in 2017. This year the government expects 9.2 percent growth through the economy of the highly indebted east African country has been not doing so well as a result of the internal political crisis and instability.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

WorldRemit: Ugandan Businesses Can Now Receive Or Send Money To UK Faster

WorldRemit

Businesses, entrepreneurs or contractors in Uganda selling goods and services to small and medium-sized enterprises (SMEs) in the U.K. can now receive payments faster and more conveniently following the launch of WorldRemit for Business in the country.

WorldRemit

What This Means

  • With this launch from the world leading digital remittances firm WorldRemit, U.K.-based SMEs can quickly pay their employees and contractors in 140 countries worldwide, including fast-growing emerging markets such as Kenya, Uganda, and South Africa. The new service will first be available to U.K.-registered businesses.
  • For Ugandan entrepreneurs and contractors doing business with clients in the U.K., this service will lead to significant time and cost savings.
  • Traditional bank payments, which are still the dominant international transfer method for businesses sending money abroad to Uganda, can take up to a week, and often incur high fees and exchange rates. In contrast, WorldRemit’s low fees and exchange rates are shown up-front and customers can send money easily via the app or website.

Transfers To Uganda To Be Processed With 24 Hours

With this new service, users sending funds to Uganda can easily track their transfers in real-time on the WorldRemit app and opt-in to receive daily exchange notifications to send money at the optimal time.

Transfers to Uganda are processed within 24 hours or less and local entrepreneurs can receive payments via bank account, mobile money or cash pick-up — whichever method is most convenient for them. 

“When I first started WorldRemit, I was frustrated with the high charges and long delays in sending money abroad both as a business owner and consumer. Over the past 9 years, we’ve made it easier for 4 million people around the globe to send and receive money,’’ Ismail Ahmed, Founder and Executive Chairman at WorldRemit said. 

Today, we’re pleased to extend that service offering to businesses, and put an end to the steep fees that many pay, especially when sending to Uganda. We’re committed to making it quick, safe and easy for you to pay individuals across borders, leaving you to focus on growing your own business.”

WorldRemit customers complete over 1.4 million transfers every month from over 50 countries to over 140 destinations using its app or website and remains committed to providing innovative solutions to meet money transfer needs across the world. Earlier this year, the company announced a new partnership with FINCA and Diamond Trust Bank to further solidify its vast partnership network.

Image result for which country most dependent on remittances

The U.K. is one of Uganda’s most important trading partners, with Uganda mainly exporting tea, coffee, and horticultural products. However, with the advent of digital technologies such as e-commerce, smaller entrepreneurs have been able to capture a growing share of U.K.-Uganda trade, especially in the services sector. WorldRemit for Business will enable this new class of digital savvy Ugandan entrepreneurs to get paid quickly and securely.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/