Wars in several foreign countries—especially the conflict between Russia and Ukraine, as well as instability in Pakistan, Egypt, and Sudan—have severely affected Uganda’s tea exports. Uganda traditionally exported high-grade tea to Russia, Ukraine, Pakistan, and Egypt, and supplied lower-grade tea to Sudan.
However, the conflicts in these countries have disrupted demand and slowed Uganda’s tea trade. Uganda also used to import fertilizer from Ukraine for use in tea gardens, but this supply chain has now been affected. According to Al-haj Hassan Basajjabalaba, a prominent businessman and tea farmer, the wars have caused a decline in demand for Ugandan tea.
He explains that the Russia–Ukraine war, in particular, disrupted the importation of high-grade fertilizer needed for tea plantations. The cost of a container of fertilizer shipped from Ukraine or Russia to the Port of Mombasa rose from USD 2,500 to between USD 8,000 and USD 11,000.
As a result, farmers have struggled to maintain their tea gardens due to the high cost of recommended fertilizers. This has led to a decline in the quality of harvested tea, making Uganda’s tea less competitive compared to exports from Rwanda and Kenya.
Basajjabalaba adds that Uganda’s tea exports to China have also been affected by the country’s failure to sign a China market agreement—an arrangement that Kenya and Rwanda already benefit from. Because of this, Ugandan exporters continue to face tariffs when exporting to China, while Kenya and Rwanda export tax-free. He is urging President Yoweri Museveni to intervene and negotiate a trade deal with China.
He also acknowledges that poor harvesting practices have worsened the quality of Ugandan tea. However, he is hopeful that if the government releases the requested Shs 310 billion to support tea farmers, the sector can be revived. He proposes investing in green tea value addition for export to China, where there is already steady demand, and in orthodox tea processing for export to the United Kingdom and Germany.
David Bahati, the Minister of State for Trade and MP for Ndorwa West, says the challenges facing tea farmers were captured in a memorandum presented to the President during his campaign trail in Kigezi from Monday to Wednesday this week.
Addressing journalists at his home in Irenga, Ntungamo District, on Wednesday night, President Yoweri Museveni acknowledged that the wars in Russia, Ukraine, Pakistan, Egypt, and Sudan have hurt Uganda’s tea exports. He called for patience, saying he would meet tea farmers to discuss the issues.
He also pledged to write to the President of China to request the signing of the China market trade deal. Museveni reiterated his view that tea farming is best suited for wealthy individuals with large tracts of land. He advised low-income earners to focus on ventures such as coffee farming, fruit growing, poultry, piggery, zero-grazing, and fishing to help them overcome poverty.
Museveni also promised to start up a special fund through which tea farmers will obtain money to buy fertilizer to improve the quality. He, however, did not reveal whether the fund will be in the form of a loan. The President also used the same opportunity to scoff at his presidential competitors, accusing them of contesting without a clear vision of finding foreign markets for Ugandan products, but merely seeking self-respect.
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