In a significant investment that promises to drive growth and sustainability in Uganda’s coffee sector, Sahel Capital has approved a $1 million loan to Sukuma Commodities through its Social Enterprise Fund for Agriculture in Africa (SEFAA). This term and working capital loan, a part of Sahel’s efforts to uplift the food and agriculture sectors in sub-Saharan Africa, aims to empower Sukuma’s network of smallholder farmers by enhancing the company’s processing and export capabilities.
Launched in 2021, SEFAA, anchored by German development bank KfW, has a mission to stimulate economic activity and support sustainable livelihoods among smallholder farmers by financing social enterprises. This recent investment in Sukuma Commodities aligns well with SEFAA’s objectives, as Sukuma plays a critical role in Uganda’s coffee industry, sourcing high-quality Robusta and Arabica beans from over 2,300 farmers. The enterprise not only exports 100% of its coffee to European markets but also supports farmers through input financing, technical training, and sustainable practices.
Uganda, Africa’s largest coffee exporter and second-largest coffee producer, presents a compelling case for agricultural investment. With Sukuma Commodities serving as a major player in this sector, Sahel Capital sees this investment as an opportunity to make a meaningful impact. “Uganda offers tremendous potential for impactful investments,” said Deji Adebusoye, a partner at Sahel Capital. “By supporting Sukuma, we are helping to improve the livelihoods of thousands of farmers. Through this investment, we expect the company to double its coffee sourcing capacity, which will enhance market access and income potential for farmers.”
The injection of capital will allow Sukuma to scale its operations significantly. Specifically, the company plans to increase coffee aggregation and processing capacity, ensuring a stable market for local farmers who depend on coffee as a primary source of income. Additionally, the loan will reduce payment cycles, enabling farmers to receive funds faster, which is expected to improve their economic stability.
Fedrick Gubala, CEO of Sukuma Commodities, expressed optimism about the partnership’s positive impact on farmers. “Partnering with SEFAA allows us to improve our engagement with farmers by shortening payment cycles, which is critical for boosting their household income and economic well-being,” he shared. Gubala also highlighted the importance of SEFAA’s technical assistance, which will help Sukuma enhance its sustainability programs and improve both production practices and coffee quality. “This partnership is about much more than financial support; it’s a commitment to strengthening our entire community.”
Sahel Capital’s investment in Sukuma is not an isolated effort but part of a larger strategy to support agribusinesses across Africa. The firm currently manages two funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which backs agribusiness SMEs in Nigeria, and SEFAA, which provides structured debt to agribusinesses across 13 sub-Saharan African countries. Furthermore, Sahel Capital is preparing to launch a successor fund, Sahel Capital Agribusiness Fund II, to expand its impact across West Africa.
This investment marks Sahel Capital’s first venture into Uganda, signaling the firm’s growing influence in East Africa’s agricultural landscape.
