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Scaling Smallholder based Premium Coffee Production in Congo and Rwanda

COOPAC is an enterprise engaged in the production, processing, and export of premium specialty coffee. Founded in 2001 with 110 coffee farmers in the Gisenyi region of Rwanda, COOPAC sources coffee beans from more than 9,000 smallholder farmers in Rwanda and 7,000 in the Democratic Republic of the Congo (DRC). COOPAC is among the few Rwandan coffee suppliers certified under three major coffee produc­tion standards: Fairtrade (FLO), Organic, and Rainforest Alliance.

Financing from the CFC enabled COOPAC to increase its wet coffee-washing capacity in the DRC – a critical process for produc­ing high-quality coffee – while also adding value through processing and certification. Part of the loan was used as working capital to scale up sourcing of organic coffee from smallholder farmers in both countries.

The investment was undertaken to deliver significant development impacts by expanding COOPAC’s farmer network and processing capacity, while also supporting greater inclusion of women farmers. It is projected to result in higher coffee yields in the DRC (from 0.50 MT/ha to 1.30 MT/ ha), the establishment of five new washing stations, improved efficiency, reduced time burdens, and higher cherry prices for farm­ers. The expansion of organic cultivation areas and certification is also expected to enhance incomes and environmental sustainability. In addition, the scaling up of operations is expected to generate signifi­cant employment, including a doubling of permanent staff.

Submitting Institution

COOPAC Holding Ltd.

Location

Congo DRC (LDC), Rwanda (LDC)

Commodity

Coffee

Total Cost

USD 3,931,880

CFC Financing

USD 1,500,000 loan (of which USD 750,000 by the Dutch Trust Fund)

Counterpart Contribution

USD 2,194,660 – Root Capital: USD 87,220 - COOPAC Holding Ltd.

Year of Implementation

2016

SDGs