After a decade of growth, a coffee cooperative shows why reliable access to finance is critical for success.
Global coffee consumption is on the rise. According to the International Coffee Organization, demand will increase by 25 percent over the next five years. As The Wall Street Journal recently pointed out, this offers tremendous opportunities for smallholder coffee producers in Uganda, Africa’s biggest coffee exporter.
It’s here where, in my role as a portfolio manager for Root Capital, I witness how the cultivation and sale of coffee can transform rural communities. Since 2005, Root Capital has lent over $200 million to small and medium-sized enterprises throughout Africa, including more than $80 million to clients in East Africa’s coffee industry. And I have seen how access to finance is a crucial ingredient in the sector’s growth.