This archive report was first published on 5 November 2019.
Stakeholders Launch Ksh.95B Project to Boost Africa's Coffee Industry ¶
On November 5, 2019, the Inter African Coffee Organisation (IACO), Centre for Agriculture and Biosciences International (CABI), and International Coffee Organization (ICO) launched the Ksh.95 billion ($950 million) 'Africa Coffee Facility' (ACF) to revitalize Africa's coffee industry.
The ACF aims to increase high-quality coffee exports by 40% to $5 billion annually, transforming Africa's coffee production from 10% of the global market to a vibrant and resilient industry.
Coffee is a primary source of income for over 12 million households in Africa, contributing significantly to tax income in several countries. The largest annual export value of African countries is recorded by Ethiopia at $762.8 million, followed by Uganda ($468.4 million), Kenya ($229.5 million), and Tanzania ($129.2 million).
Agriculture Cabinet Secretary Mwangi Kiunjuri emphasized the need to build the capacity of smallholder producers, revamp producer organizations, empower women and youth through entrepreneurship development, and transform the value chain from subsistence to entrepreneurial orientation.
Dr. Fred Kawuma, Secretary General of the IACO, noted that Africa produces high-quality coffee but its contribution to the global trade has declined significantly since the 1970s. The ACF seeks to attract private and public sector investment to transform Africa's coffee industry from subsistence to commercial or entrepreneurial approaches.
The ACF will be hosted by Afreximbank and will develop and promote domestic consumption of coffee, addressing climate change and empowering younger farmers and women in the sector.
Key aims of the ACF include investing $500 million in building a sustainable coffee supply, $100 million in improving demand, market linkages, and investments, $200 million in climate change adaptation and environmentally resilient practices, and $150 million in promoting knowledge management and dissemination.
