In a twist of events, Uganda’s Minister of Agriculture, Frank Tumwebaze, has distanced himself from a coffee deal signed between Uganda and an Italian company.
In a tweet addressed to journalists, Tumwebaze says neither him nor his ministry have any knowledge about the deal.
Matia Kasaija, the Finance minister, signed on behalf of government, while Ms Enrica Pinetti signed on behalf of Uganda Vinci Coffee Company Limited (UVCC).
Ramadhan Ggoobi, the Permanent Secretary in the Ministry of Finance, also the secretary to the Treasury, and UVCC’s company secretary Moses Matovu, witnessed the signing.
According to the details of the deal, UVCC has been given exclusive rights to buy all Uganda’s coffee even before the government can look at other players.
UVCC’s concession will end in 2032, but it is subject to renewal. The total investment value is not stipulated as per the leaked legal document.
During the period, the government pledges support in the form of non-precedent concessions that in essence mean the investor will not be eligible to pay any form of tax from project commencement.
