Funzo’s Robert Byaruhanga on Uganda’s Coffee Shift and the Move Toward Value Addition

World Business Journal talks to Robert Byaruhanga, Managing Director of Funzo, about working closely with farmers to ensure ethical coffee production practices, the growth in export volume to date, the impact of the EU Deforestation Regulation, and the shift towards value addition through an investment in a state-of-the-art instant coffee plant made at their Namawer facility.

What is the primary mission of Funzo, and what is your yearly coffee export volume?

Funzo, which means “learning/lessons”, embodies our mission to foster education and growth in our community. Founded in 2019, we collaborate with over 450 coffee farmers on the slopes of Mt. Elgon in Bulambuli, Manafwa and Kapchorwa, as well as Mubende in the central region.

Our commitment to responsible sourcing, sustainability and quality is demonstrated by our Fair Trade certification, which ensures that our farmers receive fair compensation while promoting ethical coffee production practices. We work closely with these farmers to improve their skills in climate-smart farming techniques and effective processing methods.

The coffee export volume has experienced significant growth, increasing from 640 tonnes in 2019 to over 5,000 tonnes today.

How will the EU Deforestation Regulation, effective December 31, 2025, impact the coffee sector and your company’s operations?

The European Union is a key destination for Uganda’s coffee, accounting for 67% of exports. The EUDR’s impact extends beyond Europe, requiring all Ugandan coffee to be compliant, as many international buyers re-export to the EU. The Government of Uganda, in partnership with the Uganda Coffee Federation (UCF), has formed a National Task Force on EUDR to ensure sector compliance.

Preliminary data indicate that we have a larger number of coffee farmers than we initially planned for, highlighting growth potential and strengthening our capacity to make informed decisions that reflect the realities on the ground.

Are there any plans underway to expand into value-added coffee products instead of solely exporting raw beans?

Yes, we are expanding into the value-added segment as part of our strategic growth objectives. 

We are investing $120M to develop cutting-edge infrastructure and machinery at our Namanve facility, which will include a state-of-the-art instant coffee plant. This expansion will enable us to produce high-quality, value-added coffee products for both local and international markets.

We believe that by adding value, we can transform our rich coffee heritage into a thriving future for all stakeholders involved.