UGANDA – Sahel Capital, a prominent investor in the food and agriculture sector in sub-Sahara Africa, has made an entry into Uganda through a US$1million working capital loan from its Social Enterprise Fund for Agriculture in Africa (SEFAA) facility into Sukuma Commodities (SCL).
SCL is a Ugandan-based enterprise specializing in the supply and processing of exportable green coffee for European traders and roasters.
Sahel said the investment will enable Sukuma to scale its operations, increase coffee aggregation for processing, and expand its export capacity, further benefiting local farmers.
The company sources high-quality Robusta and Arabica coffee from a network of 2,300 smallholder farmers, providing vital support through input financing and training on best production practices.
The green coffee company exports 100% of its coffee to a diverse portfolio of European offtakers, including Italy, the Netherlands, and Germany, ensuring a reliable market for its farmers.
“Uganda, as the largest exporter and the second largest producer of coffee in Africa, offers a tremendous opportunity for impactful investment. We are excited to partner with Sukuma, one of Uganda’s leading coffee exporters in the country,” Deji Adebusoye, a partner at Sahel Capital, said.
“Sukuma plays a crucial role in improving the livelihoods of over 2,300 smallholder farmers. Through this investment, which marks our first entry into Uganda, we expect the company to double its coffee sourcing, further empowering these farmers by enhancing their market access and increasing their income potential.”
Fedrick Gubala, CEO of Sukuma Commodities explained that partnering with SEFAA will significantly enhance SCL engagement with farmers by reducing payment cycles, thereby boosting their household and economic well-being.
Gubala added that the technical support provided by SEFAA’s technical assistance will strengthen the company’s sustainability programs, improving both production and quality, ultimately benefiting the hardworking farmers.
According to Sukuma Commodities it is a Ugandan second-generation coffee value-chain business.
Meanwhile, Sahel Capital currently manages two funds: Fund for Agricultural Finance in Nigeria, which has investments in SME agribusinesses in Nigeria, and Social Enterprise Fund for Agriculture in Africa, which provides primarily structured debt to agribusiness SMEs across 13 countries in sub- Saharan Africa.
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