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  • Uganda, South Korea Sign Landmark Coffee Export Deal as Kampala Targets Asian Expansion
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Uganda, South Korea Sign Landmark Coffee Export Deal as Kampala Targets Asian Expansion

Uganda has signed a landmark coffee export deal with South Korea's GVCC Co. Ltd, with the first two containers already en route to Busan, as Kampala aims to ship 3,500 tonnes annually, narrow a $90-million trade deficit, and cement its status as Africa's top coffee exporter.
Hamlet Arinda 2 months ago (Last updated: 2 months ago) 4 minutes read
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KAMPALA – The government of Uganda has signed a landmark coffee export agreement with a South Korean company, with the inaugural shipment already en route to the Asian market.

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The memorandum of understanding was signed on Monday, September 7, with GVCC Co. Ltd, a coffee enterprise based in the southern port city of Busan, on the margins of the Uganda-Korea Trade and Investment Meeting.

Ambassador Tophace Kaahwa, whose mission also covers South Korea as Uganda’s envoy to Japan, confirmed on September 8 that the main bilateral session would follow.

Under the terms of the agreement, Besmark Coffee Company Ltd will function as Uganda’s exclusive supply partner, while GVCC will serve as the exclusive distributor throughout South Korea.

According to the Ugandan delegation, the first consignment of two containers has already been dispatched, and the partners have expressed ambitious plans to establish a comprehensive supply chain utilizing Busan as a regional hub.

GVCC Chief Executive Soo-jung Lim expressed enthusiasm about the partnership, noting that the company had developed a strong interest in Ugandan coffee following initial discussions with the Ugandan delegation at a coffee exhibition in Busan.

Ambassador Kaahwa revealed that Lim is targeting imports of one 20-tonne container per day, approximately 3,500 tonnes annually, and appealed to Ugandan farmers to expand production to help meet this ambitious goal.

The agreement, coordinated by Uganda’s embassy in Tokyo, is being hailed as an early success of the country’s Economic and Commercial Diplomacy (ECD) strategy.

Launched in 2025, the initiative encourages diplomatic missions to promote value-added goods rather than raw commodities, according to the Ministry of Foreign Affairs. The strategy aligns with Uganda’s broader vision of growing its economy to $500 billion by 2040.

Dr. Crispus Kiyonga, Uganda’s Second Deputy Prime Minister, who led the delegation, thanked GVCC for its interest and assured the company of a sustained coffee supply.

He emphasized Uganda’s long-term aspiration to add value to its coffee domestically rather than exporting raw beans, and expressed interest in expanding further into Asia, with Japan and other markets firmly in sight.

Dr. Kiyonga noted that President Yoweri Museveni had set a national target of 20 million bags annually, up from current production levels, and pledged that the government would provide whatever support the partnership required.

The Second Deputy Prime Minister explained that the coffee is produced by smallholder farmers on plots of two to three acres, without the use of chemicals, making it effectively organic and beneficial for health.

He also addressed trade imbalances, noting that Uganda exports approximately $10 million worth of goods to South Korea while importing about $100 million, expressing a desire to achieve more balanced trade.

Official data indicates that Uganda’s total exports to South Korea stood at roughly $7.18 million in 2023, with coffee, tea, and spices accounting for approximately $2.6 million.

Ambassador Henry Mayega described the agreement as a significant milestone for coffee exports, highlighting coffee’s deep-rooted place in Ugandan custom, including marriage and bride-price ceremonies.

Uganda has emerged as Africa’s largest coffee exporter, having overtaken Ethiopia in 2025, and ranks among the world’s top suppliers of Robusta coffee. By volume, it currently holds approximately sixth to eighth position globally, behind Brazil and Vietnam.

In the 12 months leading to May 2026, the country exported 8.6 million 60kg bags valued at approximately $2.3 billion (UGX 8.3 trillion), up from 7.4 million bags the previous year, according to the Ministry of Agriculture, Animal Industry and Fisheries.

Robusta accounts for about 80% of exports, while Arabica, though smaller in volume, is experiencing faster value growth. In the 2024/25 coffee year, Europe absorbed approximately 62% of Uganda’s exports, Africa 23%, and Asia 13%.

Coffee represents more than a fifth of Uganda’s export earnings and supports millions of smallholder households across the nation, as Uganda cultivates two main coffee varieties: Arabica and Robusta.

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