This archive report was first published on 30 October 2021.
Uganda's coffee industry has been marred by controversy, with a recent dispute between a Ugandan company and a Singaporean firm making headlines.
At the center of the dispute is Hampage (U) Ltd, a Ugandan coffee exporting company, which has been accused of breaching a $933,046 coffee supply contract with Suncof Global Pte Ltd, a Singaporean firm.
According to documents seen by The EastAfrican, Suncof entered into a contract with Hampage in May 2021 to buy 747,000kg of natural robusta green coffee valued at $933,046 from Uganda. However, Hampage allegedly failed to abide by the agreed terms and defaulted in supplying the consignment.
Despite being paid the full amount of the contract, Hampage delivered only 663,650kg of graded coffee valued at $839,818.21, leaving a shortfall of 83,350kg worth $93,227.79.
Suncof, which is 100 percent owned by Vayhan Coffee Ltd, one of India's largest coffee roasting firms, is demanding delivery of the outstanding coffee consignment or a refund of $93,227.79 plus interest at the rate of 24 percent per annum.
The dispute has put Suncof's operations in Singapore in a difficult position, with risks of shutting down due to a shortage of coffee. The firm has brought the issue to the attention of the Uganda Coffee Development Authority (UCDA), requesting the regulator to intervene and take suitable action against Hampage.
UCDA managing director Emmanuel Iyamulemye Niyibigira and Hampage director Lubega Shafik could not be reached for comment as they did not respond to e-mailed questions by press time.
Coffee is Uganda's main cash crop and a major foreign exchange earner, contributing about 15 percent to the country's total export revenue. Uganda is the largest coffee exporter in Africa and has relaunched an ambitious campaign to become the world's largest exporter of coffee by 2025.
