African Countries Working Together To Enhance Position In Global Coffee Market – CoffeeTalk

Africa is increasingly recognizing the importance of moving beyond being just a supplier of raw materials in the global coffee industry. This is evident in countries like Kenya, Ethiopia, and Uganda, which are focusing on enhancing their positions in the global market. Kenya’s coffee sector comprises around 800,000 smallholder farmers who are organized into around 500 cooperatives. These cooperatives help farmers pool resources, share knowledge, and improve the quality and consistency of their coffee. This collective approach not only empowers farmers economically but also contributes to the sustainable development of the coffee industry in Kenya.

Kenya’s Coffee Cherry Advance Revolving Fund provides unsecured loans to smallholder farmers, easing their access to credit. The government has also introduced a “three-day payment guarantee” under the Direct Settlement System platform, ensuring that farmers receive payment within 72 hours after delivering their coffee cherries.

Several African countries are also working to boost value addition in the coffee sector by developing local brands. Ethiopia, Africa’s largest coffee producer and the fifth largest globally, produces approximately 600,000 tons of coffee annually. In recent years, the country has taken significant steps to restructure its coffee industry, shifting from raw bean exports to customized, value-added products. To support this transition, the Ethiopian government has introduced a range of policies, including registering national coffee trademarks in key international markets and actively promoting Ethiopian coffee brands globally.

Uganda has also been making concerted efforts to enhance value addition in its coffee sector. President Yoweri Museveni has consistently emphasized that increasing value addition is central to the development of the country’s coffee industry. In 2024, he signed the National Coffee (Amendment) Bill into law, encouraging the establishment of a transparent coffee auction system to protect farmers from exploitation by middlemen and promote the growth of local processing enterprises focusing on value-added coffee products.

Kenya, Ethiopia, and other African coffee-producing countries are also fostering South-South cooperation to enhance their positions in the global coffee industry by expanding their sales networks through trade fairs and e-commerce platforms, targeting emerging markets such as Egypt, Nigeria, and China.

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