KAMPALA, UGANDA —Uganda has taken a significant step in expanding its export market, initiating processed coffee exports to the United States. A memorandum of understanding (MOU) signed between DET Importers and JAL Processing Company has paved the way for the export of 600,000 sachets of iced espresso ready-to-drink liquid coffee, valued at over $200,000.
This landmark deal is expected to boost Uganda’s coffee industry, with JAL Processors’ proprietor, John Magnay, expressing optimism about the future. “Today we have signed purchase orders valued at just under one billion shillings. We believe this is just the beginning because we have a global product. This is our first order to America, and we think we can target $6 million by 2028.”
The agreement is also seen as a vital step in strengthening trade relations between Uganda and the US, particularly amid Uganda’s suspension from the African Growth and Opportunity Act (AGOA).
State Minister for Finance, David Bahati, praised the practical nature of the agreements. “In many business forums, we sign MOUs, and after two or three months, you can’t find an MOU. But today, we have signed not just an MOU but an LPO.”
Uganda aims to boost its economy from $55 billion to $500 billion by 2062 through export promotion and import substitution. The country’s vast agricultural and mineral wealth, including $1.2 trillion in gold reserves and 32 million tons of iron ore, presents a significant opportunity for growth.
Odrek Rwabogo, Chairperson of the Presidential Advisory Committee on Export and Industrial Development (PACEID), shared the committee’s aim to reach $1 billion in annual exports to the American market.
Other key commitments from the forum include plans to build a laptop factory in Kampala and establish an international standards creatives hub.
Uganda’s exports to the US have grown significantly, increasing from $7.74 million in 2017 to $60.2 million in 2022. Coffee, vaccines, and vanilla are the primary exports.
Discussion about this post