Uganda’s coffee exports to the European Union (EU) will not be impacted by the December 2024 deadline of the EU Deforestation-free Regulation (EUDR) policy, according to the Minister of State for Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi.
On December 5, 2022, the EU approved the EUDR policy, which stipulates that coffee, cocoa, and other agricultural products exported to the EU must originate from land that was not deforested after December 31, 2020.
Musasizi informed the Committee on Agriculture that the Ministry of Finance would disburse Shs13.9 billion by October 20, 2024, to the Uganda Coffee Development Authority (UCDA) to facilitate the certification of coffee products to ensure they meet deforestation-free standards.
The committee, which met the minister on Tuesday, October 8, 2024, is reviewing a petition submitted to Parliament by SEATINI-Uganda, a non-governmental organization, in which the petitioners raised concerns about Uganda’s preparedness to implement the EUDR policy.
“There is no need to worry; the funds will be released in one installment so that the certification process is completed before the December deadline. I can assure you that as a country, we are taking all the necessary steps to comply with the regulation,” Musasizi said.
The minister further explained that at the beginning of the 2024/2025 financial year, UCDA partnered with the agri-business initiative development, which secured Shs16 billion to establish the EUDR Coordination Unit.
“These funds have been made available to the private sector to initiate the formation of the EUDR Coordination Unit by Café Africa, which will conduct partial awareness activities and register 900,000 coffee-farming households,” Musasizi noted.
Musasizi’s assurance followed concerns from lawmakers, who stressed the urgency of the situation, warning that failure to meet the deadline could negatively impact Uganda’s coffee export revenues.
According to the minister, Uganda generates approximately US$500 million annually from coffee exports to the EU.
Deputy Chairperson of the committee, Hon. Hope Nakazibwe, urged the minister to fulfill his promise to release the funds to UCDA.
“We have just three months left, so we must work diligently to ensure the funds are released in time,” Nakazibwe said.
Buvuma Islands County representative, Hon. Robert Migadde, expressed concerns that UCDA should have already started implementing the policy.
“This is our top export commodity, and if we are to meet the December target, we are lagging behind,” Migadde emphasized.
Hon. Nyongore Enock (NRM, Nakaseke North County) encouraged the government to take the implementation of the EUDR seriously, warning that the EU’s position could easily influence other countries.
The EUDR requires exporters to provide detailed documentation for supply chain commodities, including land use specifics, proof of compliance with local production laws, and a due diligence statement covering the entire supply chain.