MIGA Partners with Sucafina to Support Rwanda's Coffee Sector – CoffeeTalk

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, has granted $8.9 million in guarantees to support the Swiss multinational coffee merchant Sucafina’s investments in Rwanda. This initiative focuses on enhancing the coffee sector, a crucial employment driver in the country, while promoting sustainable farming practices. The guarantees protect Sucafina against risks such as expropriation, civil unrest, and currency issues related to its investments in Rwacof Exports and Rwanda Estates, both engaged in procuring and processing coffee cherries.

As part of the guarantees, Sucafina will execute a Climate Action Plan that includes an assessment of physical climate risks and vulnerabilities at its coffee sites and washing stations in Rwanda. This plan aims to sustain coffee production amidst the increasing frequency of extreme weather events, with insights potentially applicable to other agricultural businesses.

The project is supported by the International Development Association’s Private Sector Window, which is dedicated to fostering sustainable private sector investments in fragile markets. It also aligns with AgriConnect, a World Bank initiative aimed at transforming smallholder farming, creating job opportunities, and enhancing global food security. This marks MIGA’s second engagement with Sucafina, following previous support for their initiatives in Burundi.

MIGA’s Managing Director, Tsutomu Yamamoto, highlighted the significance of Rwanda’s coffee sector, which constitutes 24 percent of the nation’s agricultural GDP. The sector faces challenges, including high production costs and low productivity stemming from aging coffee trees and climate change, adversely affecting over 400,000 smallholder farmers. He expressed optimism for the partnership with Sucafina, aimed at alleviating these challenges, protecting jobs, and fostering more sustainable farming.

Nicolas A. Tamari, CEO of Sucafina S.A., emphasized the company’s dedication to Rwanda’s coffee sector and the importance of the partnership with MIGA for investing in communities, enhancing farmers’ livelihoods, boosting climate resilience, and constructing a sustainable value chain.

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