Uganda’s 2008 tea exports hit by bad weather

Mr Ssekitoleko said the prices of tea at the Mombasa auction were on average at $2.10 per kilogramme as at September 30, which was much better than the $1.30 per kg average during the same period the previous year. In 2007, the average price of tea was $1.36 per kg.

The official said Ugandan tea exports continued to register good quality at the Mombasa auction. However, Kenya tea still to fetches 5 to 10 per cent more in prices because of its superior quality.

Uganda’s three biggest tea exporters include James Finlay, formerly Rwenzori Highlands, Rwenzori Commodities (of Mukwano Group of Companies) and the Toro and Mityana Tea Company.

Currently, tea is grown on 24,000 hectares around the country, but there is potential for expanding this to 200,000 hectares in areas where the weather is conducive to tea production. However, the industry has failed to attract new investors.

“We are calling on investors to come to Uganda and invest in tea production individually or as joint ventures. The investment is initially big since in addition to the tea plantation, there must be a factory to process the tea,” said Mr Ssekitoleko.