Russia opens market for Uganda coffee

Russia’s privately-owned newspaper Komsomolskaya Pravda KP commonly known as “President Putin’s favourite newspaper “is set to sign a memorandum of standing with Uganda’s Coffee investment consortium (CICU) to sell value added Uganda coffee in Russia.

This follows the earlier July St Petersburg second Russia Africa summit where president Museveni called on Russia to back the continent to put to an end to Africa’s continued exportation of raw materials, coffee included.

On December 16, 2023, in Moscow Russia, a journey towards the exportation of value added Ugandan coffee hit yet another milestone with an announcement of a future long-term strategic cooperation that will be cemented with the signing of a memorandum of understanding between Uganda and Russia.

Flanked by officials from the foreign affairs of both countries, from Uganda, Moses Kizige, Uganda to Russia ambassador, Nelson Tugume chairman Coffee Investment Consortium Uganda with a representative from the ministry of foreign affairs of the Russian Federation, Maria Zakharova and Olesya Nosova Editor, CEO of the newspaper gathered in one room and agreed to promote Uganda coffee straight from Ugandan coffee farmers to Russian supermarket shelves, hotels & cafes.

Stance on sovereignty
The event kicked off with a cup testing event, to show case the variety and aroma of Uganda’s very best coffees to give their Russian hosts a taste of the products.

Speaking to the press, chief Guest Maria Zakharova emphasised with concern that Africa has been feeding and watering the West, which has parasitised it for centuries.

“Because now a lot is said about the development of our relations with the African continent. And here one of the big problems is psychological, informational: people don’t know much,” she said.

Zakharova just like president Museveni during the Russia Africa summit emphasised the need to check the imbalance in global earnings that has seen the world coffee producing countries benefit only $25b out of the $460bn annually from the global coffee business, with the Africa Continent earning $2.5bn due to exportation of unprocessed coffee.

“This coffee event is an additional occasion to talk once again about Western colonialism, from which Africa has suffered for many decades. And this is manifested not only in the unequal distribution of profits from the sale of resources (the same coffee), but also in many political aspects,” she added.

In particular, Maria Zakharova stated that African countries should be represented in the United Nations Security Council.

CICU chairman Nelson Tugume used the opportunity to tell Russians more about Uganda coffee and the journey towards value addition. 

This will enhance massive breakthrough for Uganda added value products - roasted and ground coffee delivery to the European users.

How the deal came about 
President Museveni’s speech on July 28 to President Putin deeply impressed the Russian public and the ruling elite.
They realised that both African farmers and Russian coffee drinkers are in trouble because of injustice colonial coffee system where the former are suffering of underpayment and the later are served unhealthy old coffees.

When there was a joint press-conference of President Museveni and Russian MFA Lavrov on July 26, 2022 President Museveni suggested that Russians should buy coffee directly from Uganda in roasted form. It triggered following events: a joint team of Ugandan patriotic farmers united with the journalists of so called “Putin’s favourite newspaper” and the Ugandan Embassy team headed by Ambassador Kizegi started to look for a solution. As a result a few trial shipments of Ugandan roasted Arabica Bugisu AA were performed.  

Russian journalists noticed (they are passionate coffee lovers) that whoever tried the freshly harvested and immediately roasted Ugandan coffee cannot drink the “brown liquid” that is sold in nearby supermarket - the difference is gigantic.

They also noticed that the Russian cafe owners want to serve their clients fresh coffee because fresh coffee increases their sales and builds them loyal clientele.

One kilo of roasted coffee is enough to produce 120-140 cups of coffee sold at $1-2 each which earns more.
And the recent historical divorce between Russia and the Big West just put light on some previously undetected problems. 

This development signifies a colossal leap for Uganda’s coffee industry. With the Russian market opening up, the country’s coffee exporters stand to benefit immensely. The agreement indicates Russia’s willingness to diversify its sources.

The projected increased in demand for Ugandan coffee in Russia could potentially lead to a surge in Uganda’s exports, positively impacting the country’s economy. Moreover, this development could pave the way for more cooperation between the two countries in other sectors, bolstering the overall bilateral relations.

Recovery 
According to Uganda Coffee Development Authority[i], Uganda exported 6.5 million 60kg bags of coffee in 2020/21 making a record of 23 percent growth in coffee export earnings. The value of Uganda’s coffee exports to Russia has dropped from USD 7 million in 2020 to USD 3 million in the quarter ending June 2022, a significant fall as a result of the war with Ukraine.