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Empowering Burundi Coffee sector BIRARONDERWA Dismas- Junior FERGADIOTIS Andromaque HAKIZIMANA Désiré NIYONGABO Jean-Baptiste NTIMA- Chantal Drivers of the business Among 70 countries growing and exporting coffee, Burundi, meets the climatic conditions for coffee farming considering its geographical location; Over 30% of Burundian Gross Domestic Product (GDP) comes from Agriculture; 90% of national foreign exchange is made by Coffee and tea (CIA fact book, 2012) Challenges facing coffee sector Loss of interest in coffee farming: Low price Temptation to replace coffee by other crops ( Banana and potatoes) Revenue distribution not well structured through the value chain; Rural exodus: no young farmers Land breakup Lack of fertilizers Leading driver of the business Stimulate farmers to keep growing coffee by increasing their price and making available all required inputs and techniques for producing high quality coffee How to achieve this goal? Progressive privatisation of coffee sector; Improving relationship all along the coffee value chain; Encourage youth to create local farming organizations Our business idea: Implementing new washing stations (8) in the north of the country (Ngozi-Kayanza-MuyingaKirundo); Description of the business Period of the business : Permanent; Washing station capacity: 1500 T/season; Capital investment: $ 9 16120(US Dollars); Turnover : about $ 6 millions (5 990 400); Annual Net Income Before Taxes: $ 1 685 568; Target market: Foreign emerging market (US, Chine, Russia…); Ownership: 5 young people; Business Impact Coffee price is increased : 0.3$ to 0.6$ Farmers are motivated Coffee quality production is improved and market more accessible GDP is increased Challenges and strategies to overcome Challenges Low Coffee price ; Weak production: soil erosion and climatic perturbations Oldness of coffee trees Lack of information Lack of fertilizers Strategies Increase cherry coffee Price Provide information on environmental protection techniques ( Radio Talk Shows, workshops,…) Stimulate farmers to replace old coffee trees Organize training on conditions of harvesting, selling and all agricultural practices Suggest Farmers, government, and private sector to work in synergy for making available fertilizers Challenges and strategies to overcome Idleness of the privatization process by the government Coffee cost is not evaluated; The taxes issues Competition with neighbors markets; The process of privatization of coffee sector should be accelerated: Interest investors in the sector reducing charges (e.g:Taxes) Integration of research in the sector Advocacy to the government for taxes regulations Work in synergy with the government to ban the illegal sale to neighboring countries using policies How to attract youth in our business Measures to be implemented by the government: Regulation of coffee price to promote farmers Facilitate young farmers access to finances by easing loans terms To initiate laws to innovate and facilitate agricultural loans to young farmers Work on policies To use Social Marketing to really integrate youth in this business interest and integrate young people in behavior changing To use innovative ways including new ICT to make youth informed and integrated in the whole production process Dear fellow East African delegates thank you for your kind attention