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Economic Policy Paper Series

Economic Policy Paper Series #4

Uganda’s Coffee Sector: The Sleeping Giant? Can Financing Smallholder Farmers Unleash its Potential?

This study has prioritised the coffee industry: a welldeveloped global value chain in which 65% of Uganda’s smallholders are involved and which has enough global demand to absorb additional production from Uganda, with positive macroeconomic benefits for the country from foreign exchange earnings.

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This study aims to understand the systemic constraints faced by Uganda’s coffee industry in attracting finance to
the sector. In search of this understanding, the paper seeks to answer three core questions: (i) what challenges and constraints do smallholder farmers face when attracting finance to the coffee sector? (ii) how have financing delivery mechanisms been utilised thus far, and what can we learn from cases of success or failure? (iii) what policy advice can contribute to lifting constraints that inhibit smallholder access to finance? The study relied on a desktop evidence review, ethnographic observation supplemented by interviews with key interview partners, and modelling assessment that aimed to accurately determine the number of smallholder farmers engaged in Uganda’s coffee industry.

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Contact

Judith Atim

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Programme Officer

judith.atim@kas.de

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About this series

We examine economic issues in Uganda through a policy lens: Which way for Uganda's economic development? Which obstacles does the country face? And how can political players set the course for economic growth? This series crafts policy papers to inform and inspire debates around economic progress in Uganda. The Economic Policy Paper Series is published in cooperation with Centre for Development Alternatives. 

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Editor

Anna Reismann Judith Atim

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