Luanda, Angola, 18 May – Small-scale coffee producers are to have access to a US$100 million credit line to be launched in 2010, João Ferreira, the director of the National Coffee Institute (Inca) told Angolan newspaper O País.
The funding is part of a medium-term programme that aims, according to Ferreira, to reach production of 50,000 tonnes of commercial coffee per year, an amount that is just one quarter of the country’s production in colonial times.
The institute plans to make use of the fund to develop coffee in Angola to support the families that produce coffee, with Ferreira adding that, in many cases, Inca would stand as guarantor for loans taken out by smallholders from banks or the sector fund itself.
The business sector, represented by medium-sized and big coffee producing companies will have a credit line of US$50 million, funding that will be provided by banks with Inca standing as guarantor.
The director of Inca noted that the state had recently been making efforts to invest in the coffee sector, pointing as an example to the pilot project being carried out in the municipality of Gabela in Kwanza Sul province, which has investment of US$8 million, of which over US$4 million is state investment.
With this project the region of Amboim will produce, within five years, between 10 and 15,000 tonnes of commercial coffee.
According to Ferreira, coffee farming is seeing a real comeback after a long period of stagnation due to the civil war, which made most projects in the sector unfeasible.
Production currently stands at around 6,000 tonnes per years, which according to the director of Inca, is far from the level that is hoped for, and thus the idea of the programme for recovery and development of the coffee sector was drawn up, which is currently in the final stage of approval. (macauhub)