Coffee is the second largest valued commodity and most widely traded tropical agricultural commodity after petroleum. Uganda is the second largest exporter of coffee in Africa. Coffee therefore is a crop of great importance in the economy of Uganda. Coffee contributes 20-30 perecent of Uganda’s foreign exchange earnings and about 9 million people both directly or indirectly derive their livelihoods from coffee.
Despite the significant contribution of coffee to the economy, the sub sector is struggling with a number of constraints. These include; low production and productivity at the farm level, pests and diseases, lack of access to technical coffee extension services, lack agricultural financial products for coffee farmers, limited access to quality planting materials, limited funding for research and development, poor post harvest handling practices, lack of proper coffee quality control mechanisms, limited coffee processing machinery, limited coffee marketing, volatile world market coffee prices and low domestic coffee consumption.
There is an emerging issue of climate change which is threatening the coffee sub sector. The current climatic variability is beginning to affect the yields of coffee in major coffee producing regions in Uganda. In order to improve productivity and competitiveness of the coffee sub sector, the Matching Grant Facility will support production techniques and other business development services to address constraints and strengthen linkages within the coffee value chain.