New factory to transform coffee sector in Bugisu

Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), has launched the Balambuli Kwigate Coffee (BKC) Limited processing factory in the Bugisu sub-region. The multibillion-shilling facility, located in Busoba sub-county on the outskirts of Mbale City, is an indigenous initiative aimed at processing and exporting over 300 tonnes of coffee to markets in Europe, Asia, and other major coffee-consuming regions. For the past three years, BKC has been working closely with local farmers to improve coffee quality while sharing the proceeds with the community. The company aims to expand its market reach and enhance farmers’ incomes in the region. Sourced from the fertile slopes of Mount Elgon, the coffee is grown by more than 2,000 trained farmers across four sub-counties in Bulambuli district, as well as neighbouring districts. The company processes the coffee through a detailed process of washing, pulping, fermenting, drying, and then exporting it to global markets. To maintain high quality, coffee processing includes pulping by machines, fermenting for 12 to 72 hours, and washing at an established wash station. The coffee is then dried on raised beds for 21 to 28 days, depending on the weather conditions. The company has already secured a market for its fermented coffee in Saudi Arabia. Rwabwogo said that transforming Uganda’s economy from a peasant-based system to a manufacturing economy is a long-term process, but the first steps are crucial. “We are working hard to ensure that we process or roast locally. Whether it is coffee, milk, beef, or chocolate, there is a significant gain of around 15% to 18% from sourcing raw materials locally,” he said. For Uganda to remain competitive in trade, Rwabwogo stressed the need for improved transportation infrastructure, including affordable air transport for goods, large ships on lakes and rivers, and an efficient railway system for heavy cargo. “We need 2,800 kilometres of railway to connect key areas like Kasese and Nimule, revitalize the Pakwach line, and improve cargo transportation on our lakes. With multiple transport options, production costs will go down,” he added. Rwabwogo also highlighted the importance of improving farmers’ knowledge of market needs and consumer preferences. “It’s not enough to simply grow coffee. Farmers must understand the market so they can collaborate effectively with roasters and transporters. By cleaning, de-stoning, and drying coffee properly, farmers can improve the quality and secure better prices. Quality is a continuum, not just about what you get today, but about maintaining and improving quality over time.” he said. He said Uganda produces and exports 500,000 tonnes of coffee, but still imports 40,000 tonnes of roasted coffee. We export raw coffee and import low-quality roasted coffee. We have partnered with Serbian entrepreneurs to roast 6,000 tonnes of coffee in Entebbe for export to European markets. CEO’S VISION FOR THE FUTURE Bernard Mukhone, CEO of Balambuli Kwigate Coffee (BKC) Limited Coffee processing factory said the initiative is a generational enterprise with a vision that extends beyond the next 100 years and beyond $100 billion. “The launch of BKC marks the first step in roasting coffee for local consumption. Our roaster will supply specialty coffee houses across Uganda, delivering authentic coffee from Mount Elgon. Local consumption will help improve productivity at the farm level, providing a strong foundation for economic growth in Uganda,” he said. Mukhone plans to leverage the East African Community (EAC) market, which allows for the free movement of goods, to export products to neighbouring countries and they have already laid out strategies to tap into the African continental market. Hussein Hirji of Darley Investments Limited described the BKC facility as more than just a processing plant but a symbol of progress and commitment to empowering farmers. “We are connecting farmers directly to the market, and their exceptional coffee will continue to give them better returns,” he said. As part of its future plans, Makhone intends to establish a coffee school to help farmers improve their skills, boost yields and long-term sustainability of the coffee industry in Uganda and the region. “Darley Investments Ltd is a valued and strategic partner of BKC. Together we have managed to produce excellent specialty and commercial coffees as well as setting up this facility. Many thanks to the vision bearer Ali Thobani and the entire Darley family.” geofreyserugo1992@gmail.com {loadposition inarticle}