Sukuma Commodities, a leading Ugandan coffee exporter, has secured an expanded loan facility of $1.8 million from Sahel Capital said Tuesday.
The financing was executed through the Social Enterprise Fund for Agriculture in Africa (SEFAA), Sahel Capital’s agriculture-focused investment vehicle in sub-Saharan Africa. The expanded facility is aimed at funding working capital, increasing export volumes, and strengthening the sourcing and processing capacity of Sukuma Commodities, while expanding market access for its network of partner farmers.
“Since the initial investment, Sukuma has grown its exports by more than 60 percent,” Sahel Capital said in a statement, highlighting the company’s rapid growth and its increasing role in Uganda’s coffee sector.
Sukuma Commodities sources both robusta and arabica beans from more than 2,300 smallholder farmers across Uganda. The company provides input financing and training in good agricultural practices before exporting the beans to European traders and roasters, with key markets in Italy, the Netherlands, and Germany.
The partnership also includes technical assistance. Sukuma is required to improve traceability and farmer registration to comply with European deforestation regulations, a condition critical for maintaining access to lucrative EU markets. These measures are part of broader efforts across the sector to meet environmental and sustainability standards demanded by global buyers.
Background to Uganda’s coffee industry
Uganda’s coffee industry remains a cornerstone of the country’s economy, with approximately 95 percent of production destined for export. According to the Ministry of Agriculture, in the first ten months of 2025 the country exported 8.4 million 60-kg bags, generating revenue of $2.4 billion. Coffee accounts for more than 12 percent of Uganda’s total export earnings, making it one of the nation’s most important foreign exchange earners.
The expanded financing is expected to further bolster Uganda’s position as a major coffee exporter and enhance the incomes of smallholder farmers who rely on coffee cultivation as a primary source of livelihood. By providing access to finance, training, and technical support, Sukuma aims to improve both quality and sustainability across its supply chain, ensuring that farmers benefit directly from rising demand in international markets.
Officials said the additional funding would be used to increase working capital, allowing the company to purchase larger volumes of coffee at competitive prices from farmers. Investments in processing and logistics are also planned, enabling Sukuma to meet stringent European quality standards and deliver beans efficiently to global buyers.
More Read
The move reflects a growing trend of private investment in African agriculture, where financing gaps often limit the ability of exporters and smallholder farmers to scale production and access international markets. “Expanding financial support for agribusinesses like Sukuma is essential to unlock growth in the coffee sector and strengthen value chains across the continent,” Sahel Capital said.
The loan expansion also underscores the strategic role of blended finance and social enterprise funds in promoting sustainable agricultural development, particularly in high-value commodities such as coffee. By combining capital provision with technical assistance, investors aim to ensure both commercial viability and positive social impact for farming communities.
As global coffee demand continues to rise, particularly for sustainably sourced beans, partnerships between exporters, investors, and smallholder farmers are increasingly central to Uganda’s agricultural strategy. With the $1.8 million financing, Sukuma Commodities is poised to expand exports, support farmer livelihoods, and maintain its position as a key player in East Africa’s coffee market.
Uganda is one of Africa’s largest coffee producers, with the crop serving as a major pillar of the country’s economy. Coffee contributes more than 12 percent of Uganda’s total export earnings and supports the livelihoods of over 1.7 million smallholder farmers, making it a critical source of foreign exchange and rural income. The country produces two main varieties: robusta, which thrives in the lowland regions, and arabica, grown primarily in the highland areas.
The Ugandan coffee sector has experienced strong growth in recent years, driven by rising global demand, particularly from Europe, the United States, and emerging markets. In 2025, Uganda exported 8.4 million 60-kg bags of coffee, valued at $2.4 billion, underscoring the crop’s importance as the nation’s top agricultural export. Despite this success, challenges remain, including access to finance for smallholder farmers, infrastructure bottlenecks, and compliance with international sustainability and traceability standards.
Private investment and blended finance mechanisms have become increasingly important in bridging these gaps. Funds such as the Social Enterprise Fund for Agriculture in Africa (SEFAA) and investors like Sahel Capital provide financing and technical support to agribusinesses, enabling them to scale operations, enhance production quality, and expand market access. These partnerships often include farmer training, input financing, and support for environmental compliance, helping ensure that smallholders benefit directly from rising international demand.
More Read
Sukuma Commodities exemplifies this model. The company works with more than 2,300 smallholder farmers, supplying training and inputs to improve yields and quality. European buyers increasingly demand traceable, sustainably produced coffee, making compliance with environmental standards a priority. Technical assistance from investors ensures that exporters like Sukuma can meet regulations such as European deforestation rules while maintaining competitiveness in global markets.
The expanded $1.8 million financing reflects broader trends in African agriculture, where strategic investments aim to increase value addition, reduce supply chain vulnerabilities, and strengthen food and commodity export sectors. With the backing of private investors and social enterprise funds, Uganda’s coffee industry is better positioned to grow exports, improve rural incomes, and meet international standards, reinforcing the country’s status as a leading coffee exporter in East Africa.
