Uganda, Saudi Arabia Strengthen economic cooperation with focus on coffee Industrialization

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ENTEBBE, Uganda — President Yoweri Museveni on Tuesday hosted a high-level delegation from Saudi Arabia for talks aimed at bolstering bilateral economic cooperation, with a specific focus on value addition in the agricultural sector.

The Saudi delegation, led by Ali O Alswayeh, expressed interest in expanding investments in Uganda, particularly in coffee processing. Museveni welcomed the commitment, noting that while the two nations have maintained cordial relations for decades, they have yet to fully capitalize on existing economic opportunities.

“We have been working together for a long time, but we have not fully engaged to maximise our investment opportunities,” Museveni said during the meeting at State House in Entebbe.

A key topic of discussion was the Value at Source Coffee Project, an initiative spearheaded by Nonda Coffee. The project aims to transition Uganda from exporting raw coffee beans to exporting branded, finished coffee products.

Central to this plan is the proposed Luwero Coffee Park, an industrial complex in Luwero District designed to handle the full value chain—from cleaning and roasting to packaging and export.

Officials said the facility is projected to process 42,000 metric tons of coffee annually, generating an estimated $850 million in yearly revenue. The project is expected to create approximately 1,500 direct jobs and another 3,000 indirect roles in logistics and retail, while integrating over 100,000 coffee-farming households into a structured supply chain.

The Saudi market is viewed as a strategic gateway into the broader Middle East, one of the fastest-growing coffee consumption regions globally. The expansion is expected to drive demand for premium Ugandan coffee, strengthen bilateral trade ties, and create sustainable downstream markets for Ugandan farmers.

The meeting underscored a shared commitment to investment-led growth, private sector development, and value addition as key drivers of economic transformation.

President Museveni has consistently emphasised value addition as a central pillar of Uganda’s development strategy, noting that exporting finished goods rather than raw materials is critical to increasing export earnings, creating jobs, and accelerating industrialisation.

The discussions concluded with renewed commitment from both sides to deepen trade and investment cooperation, particularly in agro-processing, industrial development, and market expansion.

The engagement marked a significant step toward strengthening Uganda–Saudi Arabia economic relations and advancing mutually beneficial partnerships in strategic sectors.