In the north of Burundi, close to the border with Rwanda, we visit Majaribu, a member of the Dohorerabarimyi cooperative. We buy 1 to 2 containers of coffee from this cooperative every year. It is an important coffee for our Bergkoning blend. The coffee is also used for our Idealist blend in collaboration with Maas and Koffielust for customers such as DJI, the Municipality of Zwolle and IBM.
Stimulating Coffee Farmers through Microloans
At Dohorerabarimyi, we have now provided 82 loans. The first 30 have been repaid and there are currently 52 loans outstanding. The average loan amount is €293. This may not seem like much, but it is more than the average per capita income in Burundi of €240 per year (source: World Bank).
Majaribu now pays an interest rate of €17.58, while he would quickly pay €70.32 in interest in a year for a loan from another bank. This is on top of the question of whether he would even get financing at all, as the agricultural sector is seen as risky.
Pure Africa visits Majaribu with Dohorerabarimyi's manager
Investment in microfinance
Majaribu used the loan to buy over a quarter of a hectare of land. He himself invested 200,000 Franc, which is about €65. It was the first time Majaribu had taken out a loan. He planted grass on the purchased land. He will use this grass to cover the soil on his coffee plantation. This protects the soil from drying out during prolonged periods of drought. It also promotes biodiversity in the soil.
After repaying this loan, Majaribu wants to take out a new loan to buy a cow and chickens. He can use the grass as feed and the manure from the cow as organic fertilizer for his plantation. The goal is therefore to build a beautiful ecosystem. Like other farmers, he does not have money for artificial fertilizers. Dohorerabarimyi’s coffee is therefore essentially organic without being certified.
The investments should increase Majaribu’s coffee production, and this is much needed. His plantation looks good but currently produces just over 2kg of coffee cherries per tree. This is very little compared to other countries. His main goal is therefore not to buy more land and coffee trees, but to increase production per tree. On a coffee plantation where all (organic) best practices are applied, a tree can easily produce 8-10 kg of berries and sometimes even more. For reference: that is good for about 1kg of roasted coffee beans.
Partnering with Fenacobu for Local Expertise
We do not provide microloans ourselves in the countries where we work. We believe it is important that a local partner with knowledge of local conditions does this. That is why we work with Fenacobu in Burundi. This is a cooperative bank with 33 branches that provides loans to both farmers and entrepreneurs throughout the country.
The largest loan that has been taken out through Fenacobu is €825. In Rwanda, loans can sometimes go up to €2,500. This clearly shows that the income of farmers in Burundi is lagging far behind. We therefore want to increase our investments in Burundi in the coming years so that we can make an even greater impact. The first €40,000 has been loaned to Fenacobu (at 0% interest) and it won’t be long before we lend them more than €100,000. By supporting microcredit initiatives like the one with Majaribu and Fenacobu, we are not only helping individual farmers improve their livelihoods but also contributing to the economic development and resilience of rural communities in Burundi. Investing in sustainable agricultural practices and promoting biodiversity not only benefits the environment but also ensures the long-term sustainability of coffee production in the region.
