Tuesday, July 03, 2012

Kongo Coffee to get K10 million loan funding

INTERNATIONAL Finance Corporation, a member of the World Bank Group, will set up a risk-sharing facility with Bank South Pacific to enable the bank to provide K10 million in loans to Kongo Coffee Ltd, the largest locally-owned coffee exporter in Papua New Guinea, The National reports.
 The financing will help the company buy more coffee from farmers, meet market demand and create more jobs.
“IFC’s guarantee means Bank South Pacific will now be able to lend us the money we need to triple our coffee processing capacity to six tonness per hour from two tonnes,” Jerry Kapka, Kongo Coffee’s managing director, said.
“This improvement will allow us to purchase more coffee beans from local farmers, satisfy our customers’ demands, and increase our coffee exports.”
The company largely buys its coffee from remote communities in Chimbu province, where more than 100,000 people rely on the coffee industry for jobs and income.
Most of its suppliers are small growers who own less than two-and-a half hectares of land.
In addition, IFC will provide advice to Kongo Coffee to improve its corporate governance, internal systems, and management skills.
“By helping Kongo increase its exports and sustainability, we are giving small-scale coffee farmers an assured buyer who will want more of their product,” Carolyn Blacklock, IFC’s resident representative in PNG, said.
“More demand means younger farmers have a future and are given the opportunity to expand their businesses, increase profits, and create jobs.” 
A key priority for IFC in the PNG is to provide investment and advisory services to financial institutions to better serve micro, small, and medium enterprises and expand access to finance in rural areas to improve living standards and create economic opportunities.  
IFC is the largest global development institution focused exclusively on the private sector.
It helps developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilising capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, IFC helped its clients create jobs, strengthen environmental performance, and contribute to their local communities  – all while driving its investments to an all-time high of nearly US$19 billion

1 comment:

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