Innovative financial services to support deforestation-free coffee supply chains

Land development for agriculture is the main cause of deforestation in Uganda. The project contributes to the development of deforestation-free supply chains in coffee production. It promotes agroforestry for the production of shade coffee and other regenerative and climate-friendly agricultural and village practices. It also includes energy efficiency measures and renewable energy solutions at household and farm level. The project combines this with the promotion of blended financing. This includes revolving funds, self-help and savings and internal credit community groups as well as green loans, results-based financing and carbon financing. Local smallholder cooperatives will pool coffee production, jointly market the coffee and sell it directly to small coffee roasters in Germany - applying international standards for sustainable coffee and associated certification systems.

Project data

Countries
Uganda
IKI funding
650,000.00 €
Duration
10/2024 till 10/2027
Status
open
Implementing organisation
International Rural Development Service e.V. (ILD)
Implementing Partner
  • Caritas Kasanaensis of the Registered Trustees of Kasana Luweero Diocese
  • WEKEMBE MICRO CREDIT LIMITED
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State of implementation/results

    Project participation and land use:
    • The project is currently supporting 1,074 farmers from 989 households, organized into 83 farmer groups. 52.6% of them are women and 47.4% men, ensuring that women play a central role in coffee production and decision-making.
    • On average, each farmer cultivates 0.57 hectares of coffee, 98.4% of which is Robusta.
    • In the last season, the average harvest per person was 609 kg, which, at an average price of EUR 2.50 per kilogram, corresponds to around EUR 112.50 in income.
    Demonstration gardens and nurseries:
    • To promote deforestation-free and environmentally friendly production methods, 40 demonstration gardens of 0.4 hectares each were established. These are actively used and provide farmers with practical learning opportunities.
    • Five nurseries supply high-quality coffee and agroforestry seedlings, promote reforestation, and ensure long-term productivity.
    Training and capacity building:
    • Farmers participated in trainings on climate-smart agriculture, use of a green revolving fund, gender equality, land rights, digital and technology-based solutions, community-based ecosystem protection and restoration, and geo-mapping tools.
    • As a result, they now possess solid knowledge that strengthens both their livelihoods and environmental protection.
    Key milestone achieved:
    • Coffee on 619.2 hectares is now produced in a deforestation-free way, directly contributing to forest protection, biodiversity conservation, and climate change mitigation.

Latest Update:
12/2025

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