KAMPALA, Uganda — A recent allocation of 67 billion shillings to Inspire Africa Coffee factory in Ntungamo District has sparked public outcry, with many questioning the legality and transparency of the investment.
The funding, part of a 179 billion shilling boost to the private coffee factory, aims to support the completion and operation of a coffee value addition park in Ntungamo. However, critics argue that the investment lacks a clear profit-sharing mechanism and formal legal contract with the government, raising concerns about the misuse of public funds.
Opposition lawmakers and the public have expressed resistance to the additional funding, citing the absence of a binding memorandum of understanding between the government and Inspire Africa Coffee. The company previously received funding to promote coffee consumption among Ugandan youths, but reports showed no significant impact.
“This is not the first time funds have been allocated without any value for money,” said Marlon Agaba, executive director of the Anti-Corruption Coalition Uganda. “Many Ugandan companies engaged in coffee value addition for years are struggling without support, while this company receives millions more.”
President Museveni visited the facility last year and was reportedly pleased with the progress. However, legislators are now questioning why more funds continue to be allocated to a project lacking a formal legal contract with the government.
Robert Kabushenga, an outspoken coffee farmer, called the funding a “scam.” He criticized the spending of 60 billion shillings on a Tanzanian musician, an American actor, and organizing a marathon in Ntungamo.
The government has defended its investment, citing the need to support the private sector and promote agro-processing and value addition. Dr. Chris Baryomunsi, the ICT minister and government spokesperson, said a memorandum of understanding between the government and Inspire Africa Coffee exists, and the Attorney General’s office is finalizing a legal instrument to allow the government to acquire shares in the factory.
Uganda is Africa’s leading coffee exporter and the second-largest coffee producer on the continent, having exported 6.13 million bags in the 2023/2024 financial year, valued at $1.14 billion.
