Regional Agricultural Trade Integration :

Case of Coffee

Kambale Kisumba Kamungele Ets. TSONGO KASEREKA BP 95 Butembo, Nord-Kivu, DR CONGO AFRICAN FINE COFFEE ASSOCIATION (AFCA DRC Chapter)

ASSECCAF (Association des Exportateurs du Cacao & Cafe de la RDC)

EMRC AGRIBUSINESS FORUM Kinshasa, 24 mars 2015

by#

kamungele@gmail.com

COMMON AFRICAN "AGRICULTURAL TRADE CHALLENGES : •  Declining investment in agriculture •  Inadequate infrastructure •  High cost of fertilizers & High quality seeds •  Restricted access to credit (farmers & SME) •  Limited access to regional & international

markets •  Lack of conductive business policies &

business environments

NEED FOR MORE INTEGRATION "

•  With regional trade integration institutions, rules, and policies can be put in place to facilitate trade between neighburing countries and export to far away markets

•  Another way of adressing regional integration is to envision platforms/regional associations/fori of exchanges focused on increasing business

(National, Regional, International )

In order to tap into the the potential of the Agricultural Trade

COFFEE •  Important Commodity in the world economy (2nd Most Traded

after Oil) •  Exchange value USD16.5 billions ( 2010, 96.7 millions de sacs)

•  Produced in 70 countries - Employs 26 millions people •  Source of important foreign exchange income for exporting

countries.

!  Declining(Coffee(Prices(in(the(1990s(and(civil(in(many(African(states(

caused(the((downfall(of(African(Coffee(Produc=on(to(the(Benefit(of(

Vietnam((((2nd(World(Coffee(Producer(aDer(Brazil)(

!  According(to(the(ICO,(the(world(coffee(global(demand(at+((2.00%(

per(annun(=>(Opportunity(for(Africa(

!  Africa’s(coffee(consump=on(is(to(increase(

AFRICA’S RESPONSE "TO INCREASING GLOBAL "COFFEE DEMAND

•  Research#&#Collabora/on#between#Ins/tutes/Centers#•  G.A.P.,#Improved#Produc/vity,#Access#to#Inputs##•  Access#to#Finance#(Farmers#&#SME)#•  Implementa/on#of#Conduc/ve#Policies#•  Local#Consump/on#Promo/on#•  Access#to#Markets#through#Cer/fica/on#Schemes#•  More#Regional#Integra/on###

Global(Coffee(demand(is(es=mated(

115/170(millions(bags(by((2020.(

(

i.e.(30/40(millions((deeded(addi=onal(

bags?(

(

Where(will(all(that(coffee(come(from?(

(

Africa(has(an(opportunity(

AFCA : "AN EXAMPLE OF REGIONAL INTEGRATION

"  Founded in 2000, AFCA is a regional non-profit, non-political, member-driven association representing coffee sectors in 11 member countries, namely (Burundi, DR Congo, Ethiopia, Kenya, Malawi, Rwanda, South Africa, Tanzania, Uganda, Zambia, and Zimbawe)

"  Members include both private and public sector coffee stakeholders including producers/farmers, exporters, international importers, roasters, policy makers, transporters, forwarders and trade representatives

(

www.africanfinecoffees.org

AFCA’S CORE ACTIVITIES

"  International Promotional Events (AFCC&E)

"  Trade Missions "  Market Linkages &

Business Relationships (African Coffee Connection & Coffee Clubs)

"  Coffee Auction

(

"  National Coffee Competition

"  African Taste of Harvest (ToH)

"  Capacity Building / Training's

"  National Barista Championship

(

www.africanfinecoffees.org

TRADE & MARKET EXPANSION PRODUCT & QUALITY ENHANCEMNET

CONCLUSION :

"  Regional integration is essential for Africa to develop its Agricultural potential and turn it into a wealth creation component for its population

"  The African Fine Coffee Association has been a success story in linking regional coffee producers to international consumers through its different activities and programs

"  More initiatives like AFCA are needed in order to turn Agriculture into a driving force for Africa’s Economy

www.africanfinecoffees.org

THANK YOU

Kambale Kisumba Kamungele Ets. TSONGO KASEREKA BP 95 Butembo, Nord-Kivu +243.85.6465658, kamungele@gmail.com AFRICAN FINE COFFEE ASSOCIATION (AFCA DRC Chapter) Association des Exportateurs du Cacao & Café de la RDC (ASSECCAF)

www.africanfinecoffees.org