Connecting Coffee Farmers to Market: An investment of $9 million in a risk sharing facility to provide financing to farmer cooperatives in Ethiopia.
Ethiopia is one of the least developed countries in Africa with a per capita GDP of $541. Agriculture is critical for the Ethiopian economy, accounting for 46 percent of GDP, 90 percent of exports, and 80 percent of jobs. Coffee – Ethiopia’s main agricultural crop – accounts for over a quarter of all export earnings and provides income for about 15 million people, most of them small holder farmers. The coffee industry in Ethiopia supports small and medium sized enterprises as well as larger exporting, trading and shipping businesses.
This project, Ethiopia Coffee 2, builds on a previous successful risk share facility that provided financing to cooperatives to expand their sourcing of coffee cherry from farmers for wet milling, a process producing higher value coffee beans. GAFSP will provide $1.4 million. In this project, IFC and GAFSP will work with two partners: Nib Bank, the sixth largest bank in Ethiopia by assets, and Technoserve, an NGO which supports small farmers through access to finance and technical advice. The proposed investment is a risk sharing facility for a portfolio of up to $15.2 million of working capital loans to coffee farmer cooperatives, originated and serviced by Nib Bank in cooperation with Technoserve.
The GAFSP Public Sector Window is also funding the Agriculture Growth Program (AGP) in Ethiopia.
Ms. Laura Mecagni
Head, GAFSP Unit for IFC
Phone: +1-202-473-5969, based in Washington D.C.
Mr. Bradford Roberts
Senior Operations Officer, GAFSP Advisory Services
Phone: +1-202-473-7142, based in Washington, D.C.
Mr. Niraj H. Shah
Senior Investment Officer, GAFSP
Phone: +1-202-473-3743, based in Washington, D.C.