2 min read
12 Feb
12Feb

A storm is brewing over government funding to Inspire Africa Coffee, as Leader of the Opposition (LoP) Hon. Joel Ssenyonyi demands full transparency on the billions of taxpayer funds allegedly injected into the private coffee enterprise.

Presenting his oversight report to Parliament on Tuesday, February 11, 2025, Ssenyonyi, who led a Shadow Cabinet visit to the Inspire Africa Coffee factory in Ntungamo District, raised alarm over the lack of accountability and documentation surrounding the government’s financial support to the entity.

Key Findings from the Oversight Report

How much has been spent? The government must disclose the total amount of taxpayer money extended to Inspire Africa Coffee and ensure all funds are properly accounted for.

No Memorandum of Understanding (MOU) – Shockingly, there is no formal agreement between the government and the private company, meaning public funds were disbursed without a binding legal framework. “This jeopardizes taxpayers’ money, so funding ought to be halted immediately,” Ssenyonyi warned.

Broken Promises in Coffee Investment – Under the National Development Plan III (NDP III), the government committed to building two coffee factories in Busoga and the Central Region—the country’s top coffee-producing areas—by June 2025. However, instead of prioritizing these strategic locations, public funds were directed toward the Ntungamo project with no clear justification.

Unclear Private Sector Funding Process – Ssenyonyi called for the establishment of a clear, transparent procedure for government funding of private entities. “Uganda has many young and innovative entrepreneurs who lack funding. If formal guidelines are set, more Ugandans could benefit instead of just a privileged few,” he argued.

The report revealed that Nelson Tugume, the proprietor of Inspire Africa Coffee, attempted to justify the government’s financial involvement as a “co-investment arrangement.” 

However, there was no clarity on whether this meant joint shareholding, a grant, or a bailout.

Ssenyonyi further expressed doubts over value for money, questioning whether the project’s benefits justify the government’s financial backing.

"Government must explain how much money has so far been injected into this project. A cost-benefit analysis is necessary to determine if this investment is justified,” he stated.

Uganda remains Africa’s leading coffee exporter and the continent’s second-largest producer, having exported 6.13 million bags in the 2023/2024 financial year, earning US$1.14 billion.

While coffee is a key economic driver, the lack of transparency in public-private partnerships like Inspire Africa Coffee threatens accountability in Uganda’s multi-billion-dollar industry.

The public now awaits the government’s response on the billions in question.

🔗 Read the full report here:drive.google.com/file/d/1-vpkmN…📢 

Follow dailywestnile.info for more updates on governance, accountability, and business in Uganda.


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