Rwanda Coffee Project

Coffee Market Building for Peace and Prosperity Project 

Launched in partnership with Twin Trading and the Scottish Fair Trade Forum in 2017, the Coffee Market Building for Peace and Prosperity project is a a five-year initiative working with eight coffee co-operatives in the country’s western and southern regions. The project, which is also supported by Enactus and Matthew Algie Coffee, aims to increase the capacity of eight Rwandan coffee co-operatives by delivering business, management and leadership training; improving quality control and each co-op’s “cupping scores”; streamlining and better enabling infrastructural processes; widening access to international markets; encouraging the adoption of clean tech innovations; and working with communities, particularly women and young people, to overcome systemic barriers to economic growth.

Background to Rwandan Coffee Sector  

The Rwandan coffee sector faced near collapse in the late 1990s as a result of insufficient quantities of cherries to attract demand from off-takers and inadequate quality to attract a premium price from global buyers. Vital infrastructure was also lost during the 1994 genocide.

The Rwandan government has adopted a two-pronged approach to address these challenges:

  1. Improving technology and production – improved inputs by extension officers, replanting trees, increasing coffee washing stations, strengthening governance and management amongst cooperatives, strengthening public-private dialogue.
  2. Skills and quality- educating producers on the benefits of quality coffee and establishing quality control measures throughout the value chain. These interventions were instrumental in demonstrating the necessity of a whole value chain approach- from productivity at the farm level to improving coffee processing and creating market linkages.

The 2002 National Coffee Strategy was developed to position Rwanda as a speciality coffee producing country. This strategy called for building capacity and skills amongst coffee growers and workers at coffee washing stations, improving extension services, strengthening cooperatives and developing a Rwanda brand identity. Further revisions in 2006 and 2009 focussed on mobilising the coffee value chain to meet increasingly stringent quality and traceability requirements. The importance of shape, colour, taste, aroma qualities, as well as proper and efficient washing, drying and roasting, was emphasised.

Why this project and what our role is?

The Coffee Market Building for Peace and Prosperity project has been designed to be fully aligned with national strategies. Challenges’ experience in using a systemic market driven approach means that it is particularly well placed to address key value chain barriers to effective growth. Our other partners also bring market specific skills and expertise that will support coffee quality to enhance, cooperatives to improve, and livelihoods to enhance.

The story of coffee and Rwanda is a compelling one. It is the story of how a nascent industry helped transform livelihoods; improving incomes and supporting a healing process in rural communities as it drove national economic growth. It is a story of how out of crisis, people worked together in cooperatives and communities to overcome loss of life and loss of infrastructure. The potential of the Rwandan coffee sector has not yet been fully realized, and we seek to contribute to that realization by working to bring social, environmental and economic benefits to those in the coffee industry and rural areas.

Objectives of the Project:

The project partners intend to collaborate to addressing barriers to growth by:

 

  1. Heightening operational effectiveness through the provision of tailored training in business management capacity including budgeting, cost management, book-keeping, price risk management and cash flow management
  2. Removing barriers that have stalled reinvestment into new stock, and meant that cooperatives are unable to secure coffee volumes from farmers in a highly competitive environment.
  3. Increasing the ability to improve coffee quality and production processes.
  4. Improving ability to obtain, train and retain qualified staff, including young people, in a way that will strengthen organisational capacity.
  5. Enabling enterprises to take advantage of the growing market for traceable, high quality coffee from small cooperatives and POs, heighten know-how on approaching ethical lenders and securing contracts from buyers
  6. Adoption of environmentally friendly agricultural best practices leading to compliance with Fairtrade, Organic, and/or RFA and UTZ certification (dependent on PO, location and coffee quality).
  7. Addressing the lack of effective marketing and awareness of the international specialty coffee sector.
  8. Helping enterprises to identify and address key value chain bottlenecks
  9. Supporting community initiatives in business diversification, sustainability and capacity building

Check out this video for an overview of the project

Partners

Challenges are the largest independent Scottish development agency and one of 6 global sister organisations headquartered in Scotland. Challenges brings a hybrid approach utilising tools and processes built over 20 years of experience to contribute to building the capacity of the coffee cooperatives in SME management as well as youth engagement.

Challenges Capital has 20 years of experience of supporting SMEs to overcome the typical lack of post start-up access to financial support that enable companies to cope with the expansion stage

Twin Trading is a unique non-profit, working with coffee, cocoa and nut farmer groups in Africa, Asia and Latin America, and facilitating their access to markets. Twin have a long and established relationship working with Rwandan coffee cooperatives. In the project, TWIN will support cooperatives with key training to achieve quality standards, and support links to ethical finance for infrastructural and operational funding, among other key activities.

The Scottish Fair Trade Forum was established in January 2007 by a group of Fair Trade campaigners, Scotland-based non-governmental organisations and the Scottish Government, to promote the cause of Fair Trade in Scotland and, in particular, help secure Fair Trade Nation status for Scotland. The Forum has extensive networks with retailers and major purchasers in both private and public sectors. Challenges will work alongside the Forum to use these networks to promote product awareness and demand. Challenges and the Forum jointly organise promotional campaigns.

Enactus are a Global network organisation of academics, students and business leaders committed to addressing global challenges. Enactus draws on lengthy experience of using outstanding University students as catalysts for change in community development projects. Enactus have developed a tool for understanding household and individual needs that was developed in Latin America and has now been deployed in over 30 countries. The project is partnering with the local Enactus Edinburgh network that will support community and livelihood diversification initiatives.

Matthew Algie is a Glasgow based Coffee Roaster. They have extensive experience of working with Rwanda coffee cooperatives and an understanding of issues that currently limit fuller engagement of cooperatives in the export market. Feedback from Matthew Algie will be used to inform changes in the procurement process (particularly around quality and operational capacity) and the training of cooperative members that will be required to achieve these changes.

Our Successes to date

To date, the project has already witnessed significant successes. Exports are up. Coffee quality is up. People are drinking and enjoying Rwandan coffee for the first time. Awareness is up.

Coffee stations are receiving electricity for the first time. Lighting for people to read has been installed. New revenue generating enterprises have been established. Training works in business management and enterprise. Clean tech solutions for sustainable and environmentally friendly farming.

Examples of some of our successes to date (by end of year 2):

  • Seven systematic barriers to growth identified and addressed (e.g. infrastructural, governmental, compliance)
  • 364,380 kilograms of coffee exported by 8 cooperatives
  • On average, cooperatives have been linked to three new buyers
  • All cooperatives are exporting to international markets
  • Youth networks established across the country and have long-term business development plans
  • 52 solar kit purchased by community members, increasing opportunities for study
  • Workshops on entrepreneurship delivered to youth with new revenue generating businesses established
  • 5% increase in female participation from previous year, with more anticipated.
  • 97% increase in numbers of marginalized groups engaged
  • Nearly 500 cooperative staff trained in business development (governance, book keeping, marketing, leadership etc.)
  • 7/8 cooperatives cupping scores now reached speciality level
  • Over 500 cooperative staff and farmers trained in and compliant with best practice quality standards
  • Samples sent to 15 potential new buyers
  • 8 community-led solutions identified and acted upon

 

Get in touch

Whether you are a trader, roaster, development partner or keen coffee lover, we would love to hear from you and share more about the project. Please contact Stephen Hunt (stephen.hunt@thechallengesgroup.com) for more information.

Funded by:                              Partners: