With microcredits we stimulate entrepreneurship. Nobody knows better how to invest then the farmes themselves. Jackson, a spirited farmer in central Rwanda, is the perfect example of this. Six years ago, he bought a coffee plantation. With a microcredit of €1.500,-. he invested again in his company.
Start coffee plantation
In Rwanda and Burundi most coffee plantations are familiy companies, meaning that they are passed on generation after generation. Jackson is an exception, he started a coffee plantation himself on a piece of land he bought.
Before he started with growing coffee beans, he focused on plants like beans, cassava and corn. Because of his contact with members of the coffee corporation Koakambu, he became interested in coffee farming. Rwanda is particularly suitable for producing high quality coffee, due to their climate.
A great source of income, but not the easiest. The prices for coffee are variating and you are busy with one harvest for an entire year. However, by farming correctly, you can earn a higher income comparing to other plants. This creates motivation with real entrepreneurs like Jackson.
Young coffee plant on a coffee plantation in the region Koakambu.
750 new coffee plants
6 years ago, Jackson bought a piece of land with 250 coffee plants. Recently, he bought a new piece of land and 750 more coffee plants with his microcredit, to expand his company and to produce more coffee.
On average, one grown coffee plant gives 5 – 10 kilo of coffee berries per year, dependent on the knowledge of the farmer. In 2022, some farmers received €0,40 per kilogram of coffee berry. With every coffee plant, Jackson can get €3,- of revenue. With the new plants, this can increase untill €3.000,-. This is a huge difference. In a moment, we will tell you more about the harvest of 2023.
The average income in Rwanda is approximately €750,-. So therefore, €2.250,- per year more is a huge increase of revenue. These investments are only possible with micocredits with a low percentage of interest. We have heard for years already that farmers could not have made the investment with the normal interest rates.
Jackson on his coffee farm.
2023: a bad harvest due to climate change
In 2023 there was a bad harvest in Rwanda due to climate change. For Jackson this meant that he could get 3-4 kg of berries from each coffee plant. Therefore, his revenue last year was way below the €750,- he expected.
Recently the farmers dealt with long lasting drought, so the young coffee plants were unable to grow. This caused a 50% lower coffee yield this season compared to last year.
Jackson can afford the interest, because he also grow other plants. Naturally, this is not the original plan. Investing in plants that need special treatment becomes riskier due to climate change.
New home and solar panels
Jackson’s membership at the coffee corporation teaches him more about growing coffee. He worked hard the last few years and with the growth from this hard work, he was able to buy a house with electricity via solar panels for his familiy. Aditionally, he can afford a healtcare insurance and school money for his children.
These kind of stories signify what is important to us. They show that we can actually help coffeefarmers with their entrepreneurship with our microcredit program. By selling coffee in the Netherlands, we try to create as many stories like Jackson’s as possible.
Meeting at coffee corporation with a group of farmers that received a microcredit.
