Ugandan Coffee Gaining Traction in Russian Market
Uganda’s Ambassador to Moscow, Moses Kizige’s insights on the growing success of Ugandan coffee in the Russian market. He encourages Ugandans to learn Russian to facilitate trade, and plans for increased collaboration in areas such as investment and energy projects.
Ugandan coffee has been steadily gaining ground in the Russian market, as articulated by Moses Kizige, Uganda’s Ambassador to Moscow.
“The primary export from Uganda to Russia is currently coffee, and it is widely recognized for its exceptional quality,” Ambassador Kizige noted.
However, he acknowledged that strong competition exists from coffee-producing nations like Brazil, Costa Rica, and Ethiopia. Uganda’s coffee holds a 5% share in the Russian market, primarily used to enhance the aroma of other coffee varieties. Negotiations for more favourable trade terms are ongoing, emphasizing the value Uganda can offer.
Kizige highlighted the remarkable demand for Ugandan coffee, mentioning a Ugandan trader who transports half a ton of coffee to Moscow each week, achieving substantial profits.
Furthermore, he reported that two Ugandan traders have established coffee shops in Moscow and St. Petersburg, with the aim of encouraging others to follow suit.
Sanctions currently pose challenges, particularly for sea transportation, making it an expensive endeavor. Kizige expressed optimism that once sanctions are lifted, Uganda can significantly increase its coffee exports to Russia.
During the July Russia Africa Summit, President Yoweri Museveni drew attention to the imbalance in global coffee earnings and the export of raw materials from Africa. He called on Russia and other developed nations to support Africa’s industrialization agenda, advocating for the end of raw material exports.
The Ugandan Embassy in Russia has also organized trade shows and exhibitions, showcasing sought-after products like cocoa, fruits, pineapples, and avocados.
Fresh fish from Uganda enjoys high demand in St. Petersburg, with people eagerly awaiting its arrival.
Kizige highlighted efforts to encourage trade between Uganda and Russia, suggesting Ugandan traders return with fertilizers when visiting Russia, while Russian visitors to Uganda can take Ugandan products like coffee and tea back with them.
The Ambassador anticipates increased trade, especially if the Russia-Ukraine conflict concludes and sanctions are lifted. The mission is also actively promoting tourism, with a noticeable increase in the number of Russian tourists visiting Uganda.
Kizige reported a growing interest from Russians in investing in Uganda, particularly in areas like fertilizer production and fruit drying.
To facilitate trade, Kizige encouraged Ugandans to learn the Russian language, as it can be a significant barrier due to the limited English-speaking population in Russia.
In collaboration with Odrek Rwabwogo of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), plans are in motion to organize an export forum for Russian and Ugandan traders in Moscow, focusing on seizing available opportunities.
Kizige assured Ugandans that the Russian Federation is safe for business and that all individuals are treated equally.
He emphasized the longstanding warm relations between Uganda and Russia, dating back to the Soviet Union era and the historical absence of Russian involvement in African colonization or the slave trade.
The conclusion of the Russia-Africa Summit marked significant achievements, including increased scholarships and vocational education slots for Ugandans in Russia, as well as plans for a nuclear power project along the River Nile in Buyende district.
Kizige revealed that a delegation would soon travel from Russia to Kampala to engage with Ugandan government officials to expedite these projects.