Tuesday, January 18, 2022 UTC
Recognized by industry leaders for extensive coverage on African Asset Management
News > Asset Servicing

MIGA guarantees help strengthen Burundi’s competitiveness in global coffee market

Africa Global Funds
March 3, 2017, midnight
67

Word count: 407

The Multilateral Investment Guarantee Agency (MIGA) has announced risk guarantees of $5.6m last month in support of Sucafina Holding, Millco and Cofco equity investments and shareholder loans into three existing coffee operating companies in Burundi.

Choose ONE Magazine and TWO Articles for FREE when you register an account
Share:

The Multilateral Investment Guarantee Agency (MIGA) has announced risk guarantees of $5.6m last month in support of Sucafina Holding, Millco and Cofco equity investments and shareholder loans into three existing coffee operating companies in Burundi.

The guarantees are against the risk of transfer restriction, expropriation, war and civil disturbance and temporary business interruption.

Budeca, Bugestal and Bucafe - the coffee operating companies - purchase coffee cherries from smallholder farmers across Burundi, and then pulp, clean and dry the coffee beans for distribution in local and international markets. Currently, more than 50% of the company’s workforce is female.

As part of the Government of Burundi’s initiative to privatize the coffee sector, the coffee operating companies will continue to provide smallholder farmers with rising income, new employment opportunities within the value chain, as well as enhance the country’s export capabilities and increase its foreign exchange revenues.

“Burundi has the potential to increase its market share and profits by improving the quality of its coffee. The private sector can play a crucial role in enhancing Burundi’s coffee production and helping the country maintain its position in the global market,” said MIGA Executive VP and CEO Keiko Honda.

In addition to having the world’s most ideal climatic conditions for the production of Arabica coffee, the sector is estimated to support the livelihood of over 30% of the population in Burundi. 

Supporting the sustainable development of coffee production is therefore crucial to addressing poverty in the country.

“We are proud to expand our coffee operations across Burundi and continue to provide smallholder farmers with the skills and training they need to produce sustainable and high quality coffee, especially since coffee production plays an important role in the national economy” said Nicolas Tamari, CEO of Sucafina.

MIGA’s support for the coffee operating companies aligns with the World Bank-International Finance Corporation’s Coffee Sector Competitiveness Project for Burundi, which aims to increase coffee productivity and improve the quality of small-scale coffee growers in the country.  

It also supports the Government of Burundi’s 2009 initiative to privatize all coffee operations and increase the country’s competitiveness in the coffee sector while lifting people out of poverty.   

MIGA's Small Investment Program (SIP) is designed to facilitate investment into small and medium enterprises (SMEs) in various sectors. 

Investments are eligible for coverage under SIP if they are related to the establishment of an SME, or made into an existing SME, in a developing member country.

Registration Login
Sign in with social account
or
Lost your Password?
Registration Login
Sign in with social account
or
Registration Login
Registration