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Uganda Coffee Growing Project

This sustainability initiative focuses on increasing community income by providing coffee seedlings to rural farmers in Uganda via a 'mother garden' so they can grow coffee trees and sell the coffee produced.

Project general info

Location
uganda Western region, Uganda
Project goal
The project aims to empower local farmers, promote sustainable agriculture, and strengthen Uganda's coffee industry by creating a centralised source of quality coffee seedlings. The long-term goal is to increase yields and ensure that farmers benefit from higher coffee sales, creating a win-win scenario for the community and the environment.
Team members
pascal atugumye_profile picture_orange

Pascal Atugumye
Agronomist

david mwesigwa_profile picture_orange

David Mwesigwa
Analyst

Project description
  • Status: Pilot campaign
  • Price per bond: €500
  • ROI: 8% annually
  • Duration: 4 years
  • Interest payment: Every quarter
Project type

Impact investing

1

Advancing clonal coffee farming

Uganda has introduced new guidelines for growing clonal coffee, particularly Robusta, which is known for its resilience and higher yields. Clonal coffee refers to coffee plants propagated through cloning methods from a single parent plant. The Uganda Coffee Development Authority (UCDA) and the National Coffee Research Institute (NaCORI) have been working to improve coffee farming by promoting clonal varieties that are more resilient to disease and tailored to Uganda’s agricultural conditions. However, many farmers face challenges accessing these improved seedlings due to limited licensed nurseries and distribution networks. 

Advancing clonal coffee farming
2

Empowering farmers

To bridge the gap, DGB Group is acquiring land in Uganda to develop a 'mother garden' dedicated to growing high-quality Robusta coffee seedlings. This initiative aims to support rural farmers by providing them with seedlings that will increase their coffee yields and improve their livelihoods. By focusing on clonal Robusta coffee, the project leverages a resilient variety known for its high yield potential and disease resistance.

 

Empowering farmers
3

Ensuring economic sustainability

DGB manages a nursery that grows clonal coffee seedlings and is expanding its operations by purchasing additional land. The seedlings are provided to farmers, who in turn repay the project by selling a portion of their harvest back, creating a sustainable cycle of growth. This approach not only ensures that farmers have access to high-quality seedlings but also fosters a long-term partnership that benefits both the farmers and the local economy.

Ensuring economic sustainability

Creating a sustainable future for coffee farmers

This project will have a profound impact on both the environment and local farmers. By establishing a 'mother garden' in Uganda, DGB is addressing the shortage of high-quality clonal coffee seedlings, enabling rural farmers to improve their coffee yields and livelihoods. The project not only contributes to sustainable agricultural practices but also strengthens the distribution network for resilient, disease-resistant coffee varieties. Through a repayment system tied to their harvest, farmers can sustain their businesses while contributing to the broader development of Uganda's coffee industry.

 

UNSustainableDevelopmentGoals_Brand-01
166,000+ coffee plants
±10% income increase for farmers
336 farmers
177 hectares

Where the project is located

uganda Western region, close to Hoima, Uganda

About this region

The Hoima region in Western Uganda is a fertile agricultural area where crops like coffee, maize, bananas, and cassava thrive. Robusta coffee, in particular, is gaining importance here due to the rich soil and favourable climate. The region is home to Murchison Falls National Park, attracting tourists with its breathtaking waterfalls and diverse wildlife. This unique combination of natural wealth and economic growth makes the western region the perfect location for our project.

 

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What we will achieve with this project

±10%

Average income increase for farmers

336

Farmers positively impacted

166,000+

Coffee seedlings to be planted

177+

Hectares to be planted

25

Jobs created

Find out more

Download the project fact sheet to find out more about this project and how to invest in this sustainable initiative. Invest today, earn returns, and make a difference.  

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Project investment process

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Choose your amount

Review our terms, then choose the investment amount you wish to invest.

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Complete your investment

Register your details and securely complete your investment.

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Access your portfolio

You can access your online investment portfolio and receive regular updates.

Invest now: Transform lives and sustain our planet

Seize the opportunity to make a real difference by investing in this groundbreaking project today! By funding a 'mother garden' for Ugandan farmers, you not only earn an 8% return but also contribute to the economic stability of rural communities. 

Frequently asked questions

Why is clonal coffee farming important in Uganda?

Clonal coffee farming is crucial in Uganda for several reasons, primarily due to its role in increasing yields, enhancing disease resistance, and supporting the livelihoods of coffee farmers.

  • Increased yields: Clonal coffee varieties are selectively bred to produce higher yields compared to traditional Arabica or Robusta varieties. These high-yielding clones enable Ugandan farmers to grow more coffee on the same plot of land, thereby increasing productivity and profitability per hectare.
  • Disease and pest resistance: A major challenge for coffee growers in Uganda is the prevalence of diseases like Coffee Wilt Disease (CWD) and pests such as the coffee berry borer. Clonal varieties are developed to be more resistant to these diseases and pests, reducing the risk of crop loss and providing a more stable and resilient harvest. This resistance is especially important given Uganda’s tropical climate, which can promote the spread of these pathogens.
  • Adaptation to the environment: Clonal coffee varieties are also tailored to withstand the impacts of changing climate conditions, such as rising temperatures and irregular rainfall. By selecting clones that are more drought-resistant or better suited to Uganda's specific environmental conditions, farmers can achieve greater resilience in their crops.
  • Improved quality: Clonal coffee varieties are designed to meet specific quality standards, making Ugandan coffee more competitive in the global market. Enhancements in quality can also open doors to speciality coffee markets, where higher-quality beans can command premium prices, benefiting both farmers and the economy.
  • Economic impact: As one of the major exporters of coffee, Uganda relies on clonal coffee farming to help smallholder farmers increase their incomes. As coffee production rises, so too does the economic stability of many rural communities, ultimately reducing poverty and supporting sustainable development goals in the region.

Who are the farmers in this project?

In this project, DGB is mostly working with smallholder farmers. Smallholder farmers are individuals or families who manage relatively small plots of agricultural land, often between 1 to 10 hectares, to produce crops primarily for their consumption or to sell locally. In many cases, they rely on traditional farming methods and have limited access to resources like machinery, fertilisers, and financial capital. 

In Uganda, smallholder farmers are essential for crops like coffee, contributing to export revenues. However, they often face challenges such as fluctuating market prices, environmental impacts, and limited access to modern agricultural inputs and credit.

Initiatives such as DGB provide improved coffee variety to plants, training through agronomists on how to grow and maintain the coffee plants, and buying the coffee from the farmers. This will significantly enhance farmers' productivity and income, thus DGB is supporting the livelihoods of rural families.

Agronomists are professionals who are hired to transfer their knowledge to clonal coffee farmers. Before the clonal coffee seedlings are planted, all farmers receive professional training on planting and maintenance practices. The agronomist continues to actively monitor their progress to ensure the level of knowledge is maintained and best agricultural practices are followed for coffee production. 

How does coffee growing investing work?

You lend us money, ranging from €500 to a maximum of €10,000, which we use to distribute clonal coffee seedlings to farmers in Uganda. These seedlings significantly increase coffee yields. DGB purchases the coffee beans from these farmers at a premium price and then sells the beans at a marked-up price. This process not only boosts the farmers' income but also contributes to restoring the ecosystem. Investors will receive returns over a period of four years, with payments made quarterly. After four years, the loan matures, and we will repay the initial investment.

What does my investment consist of?

Each bond is valued at €500. By purchasing a bond, you are lending us money to produce and distribute clonal coffee seedlings to farmers. We allocate the €500 for the following purposes: 

  1. Production and maintenance: This covers the production and care of clonal coffee seedlings in the nursery.
  1. Staffing: Our nursery staff will work to produce the seedlings. 
  1. Training and support for farmers: Throughout the project, each farmer will participate in training sessions to learn how to cultivate and maintain coffee seedlings. 
  1. Harvesting, packaging, and transportation: These costs are related to ensuring that coffee is produced and sold, including logistics for collecting coffee and transporting it to Kampala for sale. 
  1. Exchange rate costs: This includes the expenses involved in converting euros to Ugandan shillings, as well as any differences in exchange rates from the time of your purchase to the transfer to Uganda. 

The maximum investment is €25,000, and we charge an issue fee of €25 for each investment.

What do my returns consist of?

You will receive proceeds from the coffee seedlings as returns on your investment. Your returns will include the redemption of your investment along with interest on the borrowed amount. The calculation of returns is based on two main factors: the quantity of coffee beans we can harvest annually and their selling price. Before we distribute your returns, several costs are covered. After deducting these expenses, the expected return per bond is 8% per year, paid quarterly.


How can we help you?

At the core of our mission lies the preservation of nature and the fostering of biodiversity. DGB Group is actively working to restore nature. Join us in creating a greener future through impactful nature-based projects. Reach out to us to learn more about our work.