HomeBUSINESSPresident Museveni Okays Mwine Mpaka’s Trade Committee Report on the Vinchi coffee...

President Museveni Okays Mwine Mpaka’s Trade Committee Report on the Vinchi coffee agreement and Agrees to meet all players in the coffee sector.

By Jimmy Muhumuza, 

Kampala. 

President Museveni has admitted that he fronted Italian investor Enrica Pinetti to lead investment in the coffee sector, despite knowing she was clueless about operations of the sector and said those against her business are merchants of slavery in Africa.

The President made the revelations during the State of Nation Address at Kololo Ceremonial Ground where he promised to meet all players in the coffee sector to explain to them his decision to choose Pinetti.

The President defended his decision to settle for Pinetti came after the embarrassment he suffered upon learning that the total value of coffee in the world is US$460Bn, however of this figure the coffee growing countries of the whole world only get US$25Bn, and of this money, The African coffee-growing countries only earn US$2.4Bn with the majority of coffee proceedings earned by nations that add value to their coffee.

The President asked all players interested in the value addition of the coffee sector arguing that instead of them attacking the savior, they should join the liberation effort but first discuss with him their proposals.

It should be recalled that on May 18th, 2022, the chairperson trade committee Hon. Mwine Mpaka tabled a trade committee report and Parliament passed a resolution directing the Government to cancel the controversial coffee deal signed between the Ministry of Finance and Enrica Pinetti the proprietor of Uganda Vinci Coffee Company Limited (UVCCL).

The parliament report directed the government to terminate this Agreement and report to Parliament, within 6 months from the date of adoption of this report. Upon termination, the Government should regularize its relationship with UVCCL through proper due diligence, due process, and proper stakeholder consultation before any further business can proceed. Thus initiating fresh negotiations

Parliament also recommended to Government to extend appropriate incentives to the already existing 47 local companies that are doing value addition in the coffee sector; fast track the capitalization of Uganda Development Corporation to the enable it to invest in soluble coffee plants to meet the international market demands and it’s at this point that the president agreed to meet all local coffee dealers in the country.

It should also be recalled that before Government gifted the lucrative coffee deal, the Ministry of Finance and the Ministry of Finance had signed an Shs1.3Trn deal for the construction of the International Specialised Hospital, where the Government agreed to issue promissory notes.

Although Pinetti had promised to deliver on the project within 2 years from approval of the loan in 2019, the Ministry of Health that was overseeing the construction works informed Parliament that all the two contractors had abandoned the site, forcing the works to come to halt. 

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