State seeks Sh200 billion to boost coffee processing
The government is seeking Sh200 billion from the World Bank and private investors to boost processing of coffee to cushion farmers from commodity price volatility in the export market.
Agriculture Principal Secretary Hamadi Boga told Business Hub, 20 per cent (Sh40 billion) of the investment will come from the international lender with Sh160 billion financed through private equity.
“We are working with development partners, the African Development Bank and the International Finance Corporation to bring about financing to support the sector. We want to move away from this public sector kind of factories to more private ways,” he said during a press briefing ahead of the Inter-Africa Coffee Organisation (IACO) annual meeting starting on Monday.
“The plan is to have six processing zones according to the six economic blocks and value chains. In a few months we will be implementing these programmes,” he added.
Domestic market
Boga said the funds will be injected into the coffee sector over a five-year period with domestic market getting the much-needed makeover.He was upbeat that value addition will insulate the farmers from offshore price fluctuation, with the government looking at the upswing of coffee shops to stimulate consumer appetite.
Next week, over 450 delegates from 25 coffee producing States in Africa will participate in the IACO conference in Nairobi where former Ethiopian premier Hailemariam Desalegn will be the keynote speaker.
