UNIDO vows to promote sustainability and resilience in African coffee sector

Addis Ababa, November 28, 2024 (FBC) – Chiara Scaraggi, Value Chain Development Expert at the United Nations Industrial Development Organization (UNIDO), underscored the critical role of the coffee sector in Africa’s economy and the urgent need for sustainable solutions.

She highlighted both the opportunities and challenges faced by millions of smallholder farmers who produce coffee in Africa.

Chiara Scaraggi reported that while global coffee consumption is rising at an annual rate of 2 to 2.5%, approximately 5.5 million coffee farmers still live below the poverty line. With 95% of these farmers being smallholders, they are increasingly vulnerable to the impacts of climate change, economic instability, and resource limitations.

In response to these pressing issues, Chiara announced the development of a new initiative called “ACT: Advancing Climate-Resilience and Transformation in African Coffee,” which aims to enhance the coffee sector across Africa. The initiative is aligned with the Ethiopian government’s sector strategies and supported by the Italian Ministry of Foreign Affairs and International Cooperation.

UNIDO has been actively involved in coffee development since 2015, establishing the first Coffee Training Center in Ethiopia and creating the Ethiopian Coffee Fund with a €10 million credit line to facilitate local investments, she said, adding that “The collaboration with the Italian government within the G7 framework has also led to a proposal for a Global Private-Public Coffee Fund. This fund is envisioned as a comprehensive financial solution for coffee-producing countries, promoting sustainability and resilience in the sector.”

The ACT Coffee Programme will initially focus on five East African countries—Ethiopia, Uganda, Tanzania, Kenya, and Malawi—before expanding throughout the continent. Its five-pillar strategy aims to bolster climate resilience, enhance value addition, ensure regulatory compliance, advance research, and promote social inclusion among coffee producers.

Chiara emphasized the importance of collaboration and multi-stakeholder dialogue, asserting that by working together, various partners—including government bodies, international coffee companies, development financial institutions, and academia—can create an enabling environment to uplift smallholder farmers and meet the increasing global demand for coffee.

As UNIDO embarks on this crucial journey, it seeks to establish a coffee sector that not only thrives economically but also prioritizes sustainability and equity, ensuring a prosperous future for the millions of farmers who are integral to the industry, Chiara underscored.