Uganda earmarks sh16 billion to enhance coffee and cocoa exports to European Union

The East African country, Uganda has got a grant of sh16 billion to enhance exports of coffee and cocoa to the European Union and other global markets. Uganda’s current finance minister, Matia Kasaija and the EU head of delegation Attilio Pacifici made an agreement on this in the capital city Kampala on December 15.

The grant for a project known as the European Union-East African Community Market Access, or MARKUP, is part of a 150 billion Shillings regional project aimed at strengthening the value chain and EU market access for strategic export-oriented crops, Independent noted via URN.

The crops are coffee, cocoa, tea, horticulture, spices, avocado and peas. In the case of Uganda, coffee and cocoa have been selected because of the country’s comparative advantages in the two cops. Coffee is Uganda’s biggest crop export.

The East African nation’s coffee export to the European Union costs sh1.3 trillion, constituting 60 percent of total exports. Whereas, cocoa export to the European Union stands for sh153 billion.

The new project aims to augment the exports of cocoa and coffee to the European Union and global market by reinforcing the supply side including the value chain, value addition and role of the private sector. Agencies such as Uganda Coffee Development Authority and multiple line ministries are said to be implementing the project. Coffee and cocoa have been chosen as they are key to the country’s development agenda.