Major Coffee Investment in Luwero to Boost Uganda’s Value-Added Export

Coffee bags in stores at UGACOF factory in Bweyogerere

A major agro-industrial project aimed at boosting coffee processing and export capacity is set to take off in Luwero District, promising to enhance value addition in Uganda’s coffee sector and expand rural employment opportunities.

The project known as the Luwero Coffee Park will be developed in Kasana, Luwero district, by Nonda Commodities, the proprietors of Nonda Coffee, in collaboration with Ingazi Group International, a Saudi-based investment firm, and the government of Uganda.

The Luwero Coffee Park is expected to process up to 35,000 metric tons of coffee annually, supporting Uganda’s push for industrialized agriculture and improved household incomes.

The announcement was made during a high-level visit by Ingazi Group’s delegation to Uganda, which included a courtesy call on President Yoweri Museveni.

The group affirmed its commitment to investing in value-added coffee production aimed at enhancing Uganda’s competitiveness in the global coffee market.

The initiative is central to Uganda’s goal of industrializing agriculture and improving household incomes through agro-based value addition.

Officials said the investment aligns with the government’s agenda to add value to Uganda’s coffee, increase coffee exports, and integrate local farmers into higher-value supply chains.

“This project represents a complete transformation of the coffee value chain—from seedling to the final premium cup,” said Tonny Miiro, CEO of Nonda Commodities.

“Our model integrates farmers directly into the value chain through seedling multiplication centers in Bukedi, Rushehe, Luwero, and Gulu, which will serve as regional hubs for farmer recruitment, training, and supply sustainability,” he added.

The initiative has been endorsed by the Ministry of Science, Technology, and Innovation. The minister, Dr. Monica Musenero, emphasized the role of strategic partnerships in implementing Uganda’s economic development agenda.

“We believe in partnerships between government, the private sector, and local communities. Nonda Coffee has emerged as a valuable partner in actualizing our strategic plan that prioritizes coffee and cocoa as major household income drivers,” she said.

President Museveni welcomed the Ingazi Group’s investment and pledged full government support through the Ministry of Science, Technology, and Innovation.

Museveni acknowledged the transformative potential of the Luwero Coffee Park in aligning with Uganda’s vision for agro-industrialization and value addition.

The Ingazi Group International officials said that Uganda’s coffee will find ready markets in Saudi Arabia and neighboring Gulf countries.

The launch of the Luwero Coffee Park coincides with President Yoweri Museveni’s ongoing push for Uganda to shift away from exporting raw coffee beans and instead focus on producing and exporting value-added coffee products.

The president has repeatedly criticized the now-defunct Uganda Coffee Development Authority (UCDA) for what he described as a narrow focus on promoting the export of unprocessed coffee, rather than encouraging investment in local processing and branding.

According to Museveni, Uganda loses substantial economic value when foreign companies purchase its coffee at low prices, process and brand it abroad, and then sell it at significantly higher prices on the international market.

He has emphasized that this pattern not only undermines Uganda’s economy but also deprives local farmers of the income and opportunities that could come from participating in a more advanced, value-driven coffee industry.

Officials said that the Luwero Coffee Park project will support the branding of “Ugandan Premium Coffee” as a globally recognized export commodity, enhancing Uganda’s position in the international coffee arena