Strengthening Smallholder Coffee Farming in Uganda
Investment Date
Dec 2020
Fund
GSIF Africa
Asset class
Credit
Operating in
Uganda
This Ugandan cooperative brings together thousands of smallholder coffee farmers, guaranteeing access to international markets, fair pricing, technical training, sustainability certifications, and social premiums.
By exporting organic and fair-trade coffee, it boosts farmer incomes, reinforces sustainability, and strengthens local cohesion.
The Challenge
Uganda is Africa’s largest coffee exporter, yet most farmers work on tiny plots with few resources.
- Over 1/3 Ugandan coffee farmers saw no profits last year
- Nearly 1/2 were unable to save any income
Coffee is a vital source of income for 1000000 of smallholder farmers across Africa, yet they face persistent challenges.
Limited Access
To credit, savings, and technical support and low bargaining power
Vulnerability
To climate risks and global price volatility (international coffee prices have fluctuated by up to 40% annually in recent years)
Barriers
To meeting international certification and quality standards
The Solution
The cooperative provides smallholder coffee farmers with fair access to international buyers, pre-financing for harvests, technical support through agronomists and university partnerships, and continuous progress toward social and environmental certifications.
network + Access to credit, technical
support and global markets + Sustainable, certified
coffee production
The Impact
21,000
Smallholder Farmers Supported
Up from 14,000 at the start of the loan
39%
Of Farmers Are Women
of farmers are women; 12% are youth
162
Direct Employees
with 25% women and 59% under age 30
8
Sustainability Certifications Achieved
organic, Fairtrade, Rainforest Alliance, etc.
10%
Price Difference Gained
by cooperative farmers compared to non-member farmers
2
Recent Community Infrastructure Improvements Completed
including school sanitation
3,000
Trees Planted
to protect coffee plants and soil
Why we invested
- Strong sector relevance
Coffee is Uganda’s largest export and a key livelihood for millions - Inclusive cooperative model
Empowers farmers, pools resources, and amplifies market access - Environmental impact
Drives sustainable and certified production, improving long-term climate resilience - Solid management and technical capacity
Experienced leadership, agronomic expertise, and strong local governance - Transformation potential
Combines scale, social focus, and capacity to reshape Uganda’s smallholder coffee system
GSI’s role
Together, we are helping transform Uganda’s smallholder coffee system into a more inclusive, resilient, and sustainable engine of rural development.
Pre-financing
Purchases and reducing reliance on expensive debt
Strengthening
Negotiating power in international markets
Expanding
Support services for its member farmers
“It is reassuring for us to work with such a like-minded partner as GSI on this transformative journey of the last mile farmer.”
Derick Komwangi
Projects Officer