{"id":28667,"date":"2022-03-27T17:59:00","date_gmt":"2022-03-27T17:59:00","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts"},"modified":"2022-03-27T18:09:44","modified_gmt":"2022-03-27T18:09:44","slug":"uganda-has-work-cut-out-as-export-squeeze-starts","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts","title":{"rendered":"Uganda has work cut out as export squeeze starts"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>On Tuesday, the tone in the tent at the Uganda Media Centre was unenthusiastic\u2014even icy\u2014before Finance minister Matia Kasaija approached the lectern with a gingerly pace.<\/p>\n

In his grasp was an 11-page statement he hoped would answer questions around escalating commodity prices Ugandan consumers had\u2014with a mystified air\u2014been asking.<\/p>\n

In his baritone marked accent that lends everything he states an avuncular air, Mr Kasaija said narratives that fixed a view of the government as a no-show were patently false.<\/p>\n

READ:<\/b><\/p>\n

We engaged Uganda with no success, coffee body claims<\/p>\n

\u201cGovernment is not sleeping,\u201d he continued, without pausing\u2014\u201cwe are looking at all sorts of ways to make sure that we control the situation.\u201d<\/p>\n

Observers, who share a dark appraisal of the road ahead, however, believe things will tailspin into chaos if\u2014as widely expected\u2014Uganda\u2019s top two forex earners take a nosedive.<\/p>\n

The past couple of months have been a bit of a whirlwind, with Uganda opting not to join the extension of the International Coffee Agreement (ICO) 2007 at the start of February.<\/p>\n

Two Thursdays ago, Uganda\u2019s gold was sanctioned by the United States Treasury Department\u2014albeit by way of a crackdown on Alain Goetz\u2019s Entebbe-based African Gold Refinery Ltd (AGRL).<\/p>\n

Gold mine no more?<\/b><\/p>\n

In recent times, gold and coffee\u2019s statuses as principal exports of Uganda have come to be understood as inevitable.<\/p>\n

Data from the Bank of Uganda (BoU) indicates that between December 2019 and November 2020, export receipts from the precious metal totalled $1.7b (Shs6.2 trillion). This accounted for 44 percent of Uganda\u2019s cumulative earnings that stood at $3.8b (Shs13.7 trillion).<\/p>\n

In fact, over a five-year stretch ending 2020, gold breezed past coffee to assume an esteemed position as Uganda\u2019s largest export. For instance, in 2019, the precious metal dominated Uganda\u2019s export receipts (57 percent). Coffee (12.7 percent) placed a distant second.<\/p>\n

Such feats were easily pulled off in spite of missed targets.<\/p>\n

Only last July, the Finance ministry revealed that Uganda lost close to $720m (Shs2.6 trillion) in missed gold exports over a four-month period.<\/p>\n

After sanctioning AGRL, Brian E. Nelson, the US under secretary of the Treasury for terrorism and financial intelligence, said: \u201cGoetz and his network have contributed to armed conflict by receiving DRC gold without questioning its origin.\u201d<\/p>\n

He added: \u201cTreasury has been very clear: global gold markets, at every step of the supply chain must engage in responsible sourcing and conduct supply-chain due diligence.\u201d<\/p>\n

There is a shadowiness about the source of Uganda\u2019s gold. By its own admission, the BoU estimated that\u2014in 2019\u2014only about 10 percent of Uganda\u2019s gold exports were excavated in the country.<\/p>\n

The Democratic Republic of Congo (DR Congo) and Venezuela are alleged to provide the shadowy smuggling networks that have propped up Uganda\u2019s bustling illegal gold market.<\/p>\n

Mr Goetz has repeatedly rejected the links, and continued to do so after the recent sanctions.<\/p>\n

ALSO READ:<\/b><\/p>\n

Uganda suspends international coffee organisation membership<\/p>\n

Uganda\u2019s permanent representative to the United Nations Adonia Ayebare offered support by insisting that \u201cAGR does due diligence on sourcing.\u201d<\/p>\n

Mr Ayebare further clarified that \u201cAGR is adding value to gold that used to be exported raw, and fetched [a] low price.\u201d<\/p>\n

Interestingly, the Uganda Coffee Development Authority (UCDA) has proffered value addition as a silver bullet that will help address structural distortions in the global coffee industry reportedly accentuated by the ICO.<\/p>\n

\u201cThe focus of the Uganda Coffee Development Authority is to be aligned to the agro-industrialisation agenda,\u201d the managing director, Emmanuel Iyamulemye said in February, adding, \u201cWe have been famous for exporting green coffee beans. Our coffee is being used to blend other coffees and the time is now to support value addition.\u201d<\/p>\n

Lofty ideals<\/b><\/p>\n

Andrew Rugasira, who at the turn of the second millennium tried to put high-quality roasted and packaged coffee on shelves in European supermarkets, was circumspect in a February 21 Op-Ed piece.<\/p>\n

He revealed that \u201cthe value-added coffee market is defined by historical asymmetries in capital availability, logistics, information technology and purchasing power between consumer and producer countries.\u201d<\/p>\n

He added: \u201cAs I learnt, at great cost, just because you roast your coffees here doesn\u2019t guarantee that you will be competitive in European consumer markets. Five companies control 50 percent of the global market for roasted coffees (Kraft, Sara Lee, Nestle, P&G and Tchibo); and four companies control 40 percent of the world coffee trade (Ecom, Neumann, Louis Dreyfus and Volcafe).\u201d<\/p>\n

So, at what cost will the UCDA come to rue the decision not to take a risk on\u2014as Mr Rugasira succinctly put it\u2014the \u201cnew leadership at ICO\u2026translat[ing] into better representation of our interests\u201d?<\/p>\n

Above all, will there be an improvement on the seven million bags of coffee exported in 2021? What about the value addition targets? With Uganda\u2019s gold sanctioned, there will be immense pressure for the UCDA to up its game.<\/p>\n

For now, niceties from the government have not been in scant supply. At a cupping and tasting event tailored to make an impression on China mid this month, Henry Oryem Okello\u2014the junior Foreign Affairs minister\u2014indicated that things are prim and proper.<\/p>\n

He said: \u201cGovernment fully supports the decision taken by the Uganda Coffee Development Authority to withdraw from ICO. The Uganda Coffee Development Authority is in charge of the industry, they are the drivers of the [coffee agenda] and we fully support them.\u201d<\/p>\n

The UCDA recently revealed that \u201cUganda exported\u2026448,957 60-kilogramme bags of coffee valued at $72.17 million (Shs259.5 billion) in February at an average price\u2026[that is] 11 cents higher than\u2026in January 2022.\u201d<\/p>\n

DON’T MISS:<\/b><\/p>\n

Katikkiro speaks out on coffee membership<\/p>\n

A case of steady progress, perhaps. Or, more accurately, Mr Kasaija\u2019s gingerly pace.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. On Tuesday, the tone in the tent at the Uganda Media Centre was unenthusiastic\u2014even icy\u2014before Finance minister Matia Kasaija approached the lectern with a gingerly pace. In his grasp was an 11-page statement he hoped would answer questions around escalating commodity prices Ugandan consumers had\u2014with a mystified air\u2014been asking. In his baritone […]<\/p>\n","protected":false},"author":84,"featured_media":28666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7,8],"tags":[233,240,234],"class_list":["post-28667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nUganda has work cut out as export squeeze starts - Uganda<\/title>\n<meta name=\"description\" content=\"On Tuesday, the tone in the tent at the Uganda Media Centre was unenthusiastic\u2014even icy\u2014before Finance minister Matia Ka ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Uganda has work cut out as export squeeze starts\" \/>\n<meta property=\"og:description\" content=\"On Tuesday, the tone in the tent at the Uganda Media Centre was unenthusiastic\u2014even icy\u2014before Finance minister Matia Ka ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-27T17:59:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-27T18:09:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/03\/img-6240a8509b862.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Uganda has work cut out as export squeeze starts\",\"datePublished\":\"2022-03-27T17:59:00+00:00\",\"dateModified\":\"2022-03-27T18:09:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\"},\"wordCount\":971,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/03\/img-6240a8509b862.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"head lines\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/uganda-has-work-cut-out-as-export-squeeze-starts\",\"name\":\"Uganda has work cut out as export squeeze starts - 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