CABI investigates how finance can help boost Africa’s coffee value chain

Published 2023년 6월 27일

Tridge summary

CABI is conducting a study to investigate how financial investment can help improve the coffee value chain in Africa, where deficiencies result in 94% of the value of the coffee being captured abroad. The lack of skills, knowledge, and access to extension services and modern technologies prevent many African coffee farmers from increasing production and diversifying into other agri-businesses. The study, in partnership with the International Coffee Organisation and the Inter African Coffee Organisation, aims to identify gaps in financial investment and provide insight on loan sizes and thresholds within the coffee value chain.

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Original content

CABI is investigating how finance can help boost Africa’s coffee value chain to maximise the production and export capabilities of micro, small to medium enterprises and individual smallholder producers of the key cash crop.A study by KPMG in 2014 found that Africa produced and exported coffee to the value of US $6 billion. But that this – through roasting, blending, packaging, branding etc – was sold abroad in final products fetching $100 billion.In other words, 94% of the value of the coffee produced in Africa was captured abroad due to deficiencies in the continent’s coffee value chain. This includes inadequate application of improved agricultural and value addition practices.Coffee production in Africa currently accounts for 10% of the global coffee market and is a primary source of income for more than 12 million households.The largest annual export value of African countries in 2021 is recorded by Ethiopia at US $1.4 billion, followed by Uganda ($883m), Kenya ($229.5m) and ...

Source: Cabi