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Home Agriculture

Harnessing regional trade to grow African fine coffee markets

ITC’s sustainable agribusiness initiative, Alliances for Action, traveled to Kigali with African coffee entrepreneurs from across its programmes to showcase fine Ethiopian coffees

Fabio Scala by Fabio Scala
March 12, 2023
in Africa, Agriculture, Trade
Reading Time: 3 mins read
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Ethiopia: International Coffee Day held at birthplace
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At an expo in Rwanda, ITC’s Alliances for Action partners showed how Africa can earn more from its coffee.

“We all know that most African coffee producers live below the minimum subsistence income,” said Enselme Gouthon, president of the African and Malagasy Robusta Coffee Agency, “so it’s crucial to find an innovative model to capture more value from the first processing stage.”

Also read: AfDB SEFA approves US$5M grants to set up super energy service companies in 3 countries

He was speaking to the World Coffee Producers’ Forum in Kigali, Rwanda, where no one needed the reminder. Most in attendance are actively seeking to change that reality, by finding ways to add value to coffee in the countries where it’s grown.

A few days later, 955 people from around the world gathered to explore solutions, products and trends at Africa’s largest coffee trade platform, the African Fine Coffees Conference & Exhibition (AFCA).

Regional and international coffee roasters, traders, producers and entrepreneurs gathered to share knowledge and make new connections.

ITC’s sustainable agribusiness initiative, Alliances for Action, traveled to Kigali with African coffee entrepreneurs from across its programmes to showcase fine Ethiopian coffees and bring the topics of value addition at origin and regional trade to AFCA’s audience.

It was also a fitting opportunity to share ITC’s seminal Coffee Guide, 4th Edition – a go-to resource for many in the coffee industry.

Ethiopia shares the value of roasting at origin

African producers at AFCA tend to export green coffee. This year, ITC and its partners went against the grain by bringing five Ethiopian fine coffee producers. Four of them process and sell their own roasted coffee – a rarity on the continent.

Ethiopia consumes roughly half of the coffee it produces. That’s a great model for other African countries now seeking to take ownership of their product by processing and drinking more coffee in-country.

“Ethiopia could take the lead on teaching other African countries about internal consumption, and how to adopt coffee drinking as a culture,” said Minilik Habtu Endale from Ethiopian brand Typica Specialty Coffee Exporter.

ITC’s programme participants shared their products and best practices on integrating coffee farming and roasting.

Ethiopia could take the lead on teaching other African countries about internal consumption, and how to adopt coffee drinking as a culture

Their sustainable agroforestry models also drew attention. Some importers expressed interest in their other product ranges, like honey.

Also read: NJ Ayuk releases ‘A just transition: making energy poverty history with an Energy Mix’

What does the African Continental Free Trade Area mean for African coffee?

The opening panel looked at how free trade within Africa can help coffee producers, especially those seeking to add value at origin.

ITC’s Coffee Guide Network Coordinator, Katherine Oglietti, moderated the panel that included Vanusia Nogueira, Executive Director of the International Coffee Organisation (ICO); Ambassador Solomon Rutega, Secretary General of IACO; and Minilik Habtu Endale from Typica Specialty Coffee.

Panelists discussed the possibility of lifting tariffs on coffee for African intra-regional trade. Oglietti presented recent ITC and ICO data on green, soluble, and roasted coffees for Africa to highlight the potential for intra-regional trade.

Nogueira, a key contributor to the Coffee Guide, was enthusiastic but cautious.

“Optimizing the industrialization processes through a continental plan can bring new flavours and fair prices to new consumer segments, which is great. However, Africa must first address its challenges in logistics before it can take plans forward successfully,” she said.

She also referenced the Coffee Guide as a top knowledge and data resource as value-added coffee products get developed and traded within Africa.

The Coffee Guide takes centre stage

ITC-Alliances for Action partnered with Vuna Coffee School to launch the first in-person “Coffee Champions League” quiz, as a side event to AFCA. African coffee producers, exporters, and businesses participated.

“We believe that coffee education and trading have one trait in common: tools and resources are not equally available and accessible to all value chain players, and need to be more inclusive” said Sara Morrocchi, founder and CEO of Vuna Coffee School.

Also read: Africa is the Place to Invest – Jeffery Sachs agrees with AfDB report

With lively music playing, teams worked together to answer questions based on Coffee Guide content. Topics ranged from coffee market, quality and trading to sustainability.

The winning team took home roasted fine African coffee and a coveted hard copy of ITC’s Coffee Guide, 4th Edition.

Related

Source: International Trade Centre
Tags: AFCAafricaAfrican coffeeAfrican coffee entrepreneursAfrican Continental Free Trade AreaAfrican fine coffee marketsagricultureAmbassador Solomon RutegaCoffeeCoffee Champions Leaguecoffee industryEnselme GouthonentrepreneursEthiopian coffeesFeatureHarnessing regional trade to grow African fine coffee marketsICOITC's Alliances for ActionMalagasy Robusta Coffee AgencyMinilik Habtu EndaleRwandaSara MorrocchiTradeWorld Coffee Producers’ Forumафрикаأفريقياアフリカ非洲
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Fabio Scala

Fabio Scala

Fabio Scala is currently a bank director in Mozambique. Previously he served in a UK family office focused on an equity portfolio in Southern Africa. He is also a board member of Uhusiano Capital, a boutique investment firm focused on impact investment, and a board advisor at Digilogic - a pan-EU-Africa network of DIHs focusing on Smart logistics. Prior to his African experience, Fabio has worked in the US, Portugal, and Brazil where he started his career at Caixa Economica Federal - the country’s largest state bank.

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