news - FMO invests in Sucafina

The family-owned Sucafina group specializes in the sourcing, primary processing, exporting and merchanting of coffee, mainly from Africa, Asia and Brazil.

Sucafina’s strategy focuses on growing its value-added business, i.e. premium and specialty coffees in an increasingly sustainable environment. Important aspects are to secure quality and quantity of input, enable traceability, increase the amount of premium beans and ensure that specific client requirements (e.g. regarding variety/origin) can be fulfilled. As such, and with FMO’s support, Sucafina will further develop its upstream activities in East Africa.

A USD 10 million term facility from IDF will be provided for both the development of new and the acquisition of existing washing stations, processing facilities and warehouses as well as the associated working capital needs of these upstream assets.

By establishing washing stations together with processing and warehousing facilities, the development of value-added coffees (e.g. fully washed Robustas or high quality gourmet Arabicas) can more easily be realized. Because off-takers are willing to pay a premium for value-added coffees, the coffee producing smallholder farmers receive a better price for their beans, which contributes directly to their household income. In addition, Sucafina’s farmer support program (Sucastainability) ensures that good agricultural practices are applied by smallholder farmers, which results in higher yields, better quality beans and consequently more income. Finally, on a macroeconomic level, the coffee sector constitutes a major contributor to GDP and is a strong foreign exchange generator in East Africa.