Coffee Boom Raises Questions Over Local Value Retention

Kampala, August 15, 2026 - Uganda's coffee production and export earnings are rising sharply, but policymakers and economists are questioning whether the gains are translating into stronger farmer incomes and greater value retention inside the country.

Production has increased from about 6.9 million bags to more than 8 million bags, with the government projecting further growth as newly distributed seedlings mature. State Minister for Agriculture Desire Muhooza has linked the expansion to government interventions aimed at raising production and improving farmers' access to financing and inputs.

Muhooza highlighted the Parish Development Model as one channel through which small-scale farmers can obtain financing at relatively low interest rates. The financing push is intended to help farmers invest in production and participate more actively in a crop that remains central to Uganda's export economy.

Economists have cautioned that higher output alone may not deliver broad gains unless farmers capture more value and Uganda improves processing and market positioning. The debate points to a familiar investment challenge: Uganda is expanding volumes in a major export crop, but its longer-term gains will depend on quality, branding, processing capacity and stronger links between farmers and higher-value markets.