Uganda secures coffee supply deal with South Korea's GVCC

Uganda has signed a memorandum of understanding with South Korean firm GVCC Co. Ltd to supply coffee to the Asian market. Under the agreement, Besmark Coffee Company Ltd will act as Uganda’s exclusive supply partner, while GVCC will serve as the exclusive distributor in South Korea. The first consignment of two containers is already en route to Busan.

The partnership aims to establish Busan as a regional hub to process, add value to, and re-export Ugandan coffee to Japan and Southeast Asia. GVCC CEO Soo-jung Lim indicated a target of importing approximately 3,500 tonnes of coffee annually, or one 20-tonne container per day.

This trade deal comes amid challenges for the Ugandan coffee sector. Recent data shows coffee exports fell by 15.1% in July compared to the previous year, a decline attributed to drought conditions and changing weather patterns affecting production. The new agreement is part of Uganda’s Economic and Commercial Diplomacy strategy to promote value-added goods and support long-term economic growth goals.