Tugume Nelson on Inspire Africa Group’s Strategic $150M Investment Transforming Uganda’s Coffee Sector
World Business Journal talks with Tugume Nelson, CEO of Inspire Africa Group, about the strategic investment established with the government through a public-private partnership aimed at transitioning Uganda’s coffee industry from exporting raw beans to producing finished, branded products such as roasted, ground, and packaged coffee. This initiative aims to increase export value and create jobs, while also highlighting opportunities in coffee tourism and investment for stakeholders.
Can you tell us more about the Inspire Africa Coffee Park project?
Located in Ntungamo, the Inspire Africa Coffee Park spans 120 acres and aims to become a premier destination for coffee production and tourism.
The park is projected to produce 15,000 MT of coffee annually, offering a diverse range of products, including premium brews, instant coffee sachets, espresso capsules, coffee-based cosmetics, and gourmet chocolates.
It will feature a coffee processing factory, a 1,000-capacity conference centre, a business complex with shops and cafés, and a 4,000-seat sports facility. We plan to cultivate 100 acres of premium coffee near Lake Nyabihoko and establish a resort to attract tourists and business travellers. The park intends to use blockchain technology to link funds with the factory. The process has already started to onboard farmers with the Inspire Digital Coffee Fund. This will ensure efficiency in the supply chain system.
We’re not just about adding value in the coffee industry; our goal is to create brands, establish industries, and lay the groundwork for future success via value addition.
What is the total investment in the project, and what is the organisational structure of Inspire Africa Group?
The Ugandan government has invested $26M in the coffee project and plans to add $20M, totalling approximately $50M.
The total estimated investment for the project stands at $150M, highlighting a funding gap and an invitation for equity investments from potential investors.
We retain a 65% stake, while the government holds the remaining 35%. The Coffee Investment Consortium of Uganda (CICU), which includes representatives from the government, Inspire Group, and the Ministry of Science, Technology, and Innovation, oversees the project.
What benefits will this project bring to Uganda’s economy?
Uganda earns about $1.2B from coffee sold at $2.5/kg, while buyers in Italy, Germany, and the US pay $40/kg. Our goal is to increase earnings to $5B by 2030, potentially raising coffee prices to $30/kg.
